Craig Leipold
Nashville Predators
501 Broadway
Nashville, TN 37203

May 24, 2007

Dear Predators' Season Ticket Holders:

June 25, 2007 will mark the 10-year anniversary of the awarding of the NHL franchise to Nashville that became your Nashville Predators. It's been an incredible 10-year journey for me. I can't tell you enough how much I appreciate your strong emotional and financial support of the Nashville Predators. You are a big part of the team's on-ice success. On behalf of the entire franchise, I thank you.

Ten years ago, I couldn't call myself a hockey expert. Today, my family and I are as passionate and competitive about the game as the most hardcore fans.

When the franchise began, I said we would run it as a business in order to be successful. We developed a game plan both on and off the ice. We became an integral part of the community, especially downtown Nashville. We made sure we had some fun. And, we indicated that making a huge profit was not a top priority – but we certainly didn't make plans to lose a significant amount either.

As part of those plans we developed a loyal fan base – every team should be fortunate enough to have a Cell Block 303 and the loudest arena in the league. We built a team that the community could be proud of on and off the ice. We grew our hockey skills exactly as general manager David Poile outlined, using the draft as a foundation and then supplementing at the appropriate times with trades and free agents. We gave back to the community – well over $2 million in grants and in-kind donations through the Nashville Predators Foundation. We created an entertaining in-arena atmosphere for every game night. And, we did it all while keeping our ticket prices near the bottom of the league.

Unfortunately, the success on the ice has not translated to success for me as business owner.

Here are just a few facts as to why:

The Nashville Predators tallied up 216 points in the last two seasons, fifth most in the NHL, yet because of below-average attendance, the team will still have a real cash loss of $27 million during that time. Additionally, that loss is despite receiving the most money in the league from revenue sharing. Over the last five years, the team has lost over $60 million.
We've invested heavily in sales and marketing efforts, spending over $50 million in 10 years, most of that with locally-based businesses.
Our average regular season attendance this past season was 13,589, up from the year before, but still 2,000 below the NHL average. A low turnout, combined with a low ticket price results in a poor financial situation.
The new NHL Collective Bargaining Agreement with revenue sharing is not a cure-all. Each local market must still support its local team. In addition, this attendance does not qualify us for our full revenue sharing allocation under the... [ Read More (0.3k in body) ]