This morning, the Nashville Predators shared with the Nashville Sports Council the Executive Summary of an Economic & Fiscal Impacts study prepared by Leib Advisors. Leib Advisors, a consulting group which specializes in facility feasibility, market potential, and economic & fiscal impact estimates, concluded the team and arena generate an annual impact of $410 millon to the local economy. The full Economic Impact Study is expected to be completed in the coming days.
A highlight of the study was on the annual spending, jobs, and tax impacts enjoyed by the City of Nashville and Davidson County over the last four years when performance incentives were approved by Mayor Karl Dean and Metro Council to begin in 2007.
EXECUTIVE SUMMARY – Nashville Predators and Bridgestone Arena Economic Impact
Since the local ownership group saved the franchise and new incentives were put in place in 2007, state and Metro tax revenue generated by Bridgestone Arena has totaled $73.7 million. With a cumulative return of $25 million to the public sector and a net economic impact of $410 million to the community, the public sector has achieved returns on its investment in excess of 3:1 and 30:1 respectively.
More than 2,350 jobs are supported annually by the Nashville Predators and Bridgestone Arena.
For the second year in a row, Bridgestone Arena ranks sixth in the United States for concert attendance, according to international trade publication Pollstar. The Arena also sits 20th in the world and eighth in North American concert attendance.
In 2010-11, Bridgestone Arena hosted 1.4 million guests, a 30 percent increase over 2009-10 and 40 percent over 2006-07. In its history, Bridgestone Arena has hosted more than 18 million guests.
Nearly two-thirds of attendees at all Bridgestone Arena events (65.1 percent) come from outside of Davidson County, including 84.4 percent of concert-goers and 57.6 percent of Predators game attendees. In addition, many attendees come from out of state – 39.3% of concert-goers, 10.8 percent of Predators attendees and 17.4 percent of overall attendees. This phenomenon creates a pure economic impact to Davidson County in that the dollars spent by out-of-county visitors would not have been spent here otherwise.
If the Predators and Powers Management had left Nashville in 2007, the cumulative cost to the public sector would be $28 million. At the same time, the annual debt service on Bridgestone Arena would have continued, at a cost to Metro over the period of roughly $20 million.
Since its inception, the Predators Foundation has contributed more than $5 million in grants and in-kind donations, resulting in the direct and indirect creation of 31 jobs.
In 2010-11, almost 100 million viewers across America watched events broadcast from Bridgestone Arena, including events such as CMA Awards, CMA Country Christmas, college basketball, CMT Awards and NHL games.
Since the new incentives were put in place, millions of dollars of tax revenue generated by Bridgestone Arena have gone directly to Metro Nashville public schools.
The Predators and Bridgestone Arena spend an average of $2 million to promote events. The money goes back into the local economy in the form of TV/radio spots, print and internet campaigns, outdoor billboards and the use of printing/graphics and post-production facilities.
As of December, 2011, Nashville Downtown Partnership listed 177 restaurants, 120 shopping and retail locations and 71 bars/small music venues in the downtown area.
Leib Group has over 50 years combined experience in collecting, filtering and applying detailed, reliable information to the sports and entertainment industries. They have worked with NHL franchises like the Dallas Stars, Minnesota Wild, and Tampa Bay Lightning in recent projects and they also have experience locally in the Nashville market, having assisted the new ownership of the Nashville Sounds in their acquisition of the AAA Pacific Coast League franchise.