HB 1151 - SB 1120
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 13, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
HB 1151 - SB 1120
SUMMARY OF BILL: Requires contracts entered into between a personal seat license
(PSL) holder of 10 or more years and a professional sports franchise for the purchase of a
subsequent PSL with an upgraded or improved seating classification to include a provision that
enables the PSL holder to purchase the subsequent PSL for the same price as the previous PSL.
Applies to all contracts for subsequent PSL purchases entered into on or after the effective date of
this act.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• The proposed legislation would only apply to a contract for a PSL in a stadium with seating
capacity of at least 65,000 located in Davidson County.
• A PSL is a one-time fee paid in the first year of season ticket membership that gives a PSL
holder exclusive rights to buy season tickets each year. In each subsequent year, the PSL
holder only pays the ticket costs of the seat.
• A PSL in the stadium in Davidson County can range in price from $250 to $64,000 per seat.
• The proposed legislation would require a professional sports franchise to offer a subsequent
PSL with an upgraded or improved seating classification for the same price as the previous
PSL to a PSL holder of 10 years or more.
• According to the Department of Revenue, the 7.0 percent state sales tax revenue remitted
from PSLs and subsequent ticket sales is allocated as follows:
o 5.5 percent to the Metropolitan Sports Authority;
o 1.0 percent to the General Fund; and
o 0.5 percent to the Education Fund.
• Additionally, all sales tax revenue generated from the local option sales tax is remitted to the
Metropolitan Sports Authority.
• Requiring a professional sports franchise to sell certain PSLs for the same price as the
previous PSL may impact sales tax allocations to state and local government.
• However, it can be reasonably assumed that the professional sports franchise will increase
the price of season tickets or regular tickets such that the net impact to state and local sales
tax revenue will be not significant.
HB 1151 - SB 1120 2
IMPACT TO COMMERCE:
NOT SIGNIFICANT
Assumptions:
• Requiring a professional sports franchise to sell certain PSLs for the same price as the
previous PSL may result in decreased business revenue to the franchise.
• However, it can be reasonably assumed that any decrease in revenue would be offset by
increased prices for season tickets or regular tickets such that the net impact to business
revenue will be not significant.
• The proposed legislation is not expected to have any significant impact on jobs in
Tennessee.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director