The Titans and Predators are limited partnerships, business organizations Sundquist said have been squeezing through loopholes in Tennessee's tax law. House Speaker Jimmy Naifeh, a Democrat, is suggesting closing those gaps instead of enacting a new tax system. It's unclear how large a financial hit the teams would take if Naifeh gets his way. Either way, though, it looks like Nashville's major-league teams, which have stomped and skated their way into lucrative Metro stadium and arena deals, are going to owe the public more money. They're in the same boat as scores of other Tennessee businesses that haven't been paying corporate franchise and excise taxes, the state's main business tax.
Critics believe it's time for a change.
Those costs ought to be borne by everybody. But one team owner believes the risky nature of sports business should warrant some favorable tax consideration, particularly for the Predators and smaller clubs like the Nashville Kats arena football team and the Nashville Sounds minor-league baseball organization. The NFL's one thing, because teams get a huge check the first of the year from the league's TV contract, but that's an anomaly. He points to the fact the NHL and Arena Football don't have lucrative TV deals. Officials in Michigan, the only other state with major-league sports and a business tax like the one Sundquist is proposing, said no tax breaks were given to teams there.