Metro Sports Authority Lawsuit
Metro Sports Authority Lawsuit
Metro Sports Authority Lawsuit
10/11/2023 2:02 PM
CLERK & MASTER
DAVIDSON CO. CHANCERY CT.
THE METROPOLITAN )
GOVERNMENT OF NASHVILLE )
AND DAVIDSON COUNTY, )
TENNESSEE, )
)
Plaintiff, )
)
v. ) Case No. ___________________
)
BILL LEE, in his official capacity as )
Governor for the State of Tennessee, )
RANDY MCNALLY, in his official )
capacity as Speaker of the Senate of )
the State of Tennessee, and )
CAMERON SEXTON, in his official )
capacity as the Speaker of the House )
of Representatives of the State of )
Tennessee, )
)
Defendants. )
COMPLAINT
Nashville”) seeks a declaratory judgment and injunctive relief from implementation of 2023
Public Acts chap. 410 (hereinafter, the “Nashville Sports Authority Act” or the “Act,” attached
as Ex. 1), which Defendant Governor Bill Lee signed into law on May 11, 2023. The Act
Government of Nashville and Davidson County (the “Nashville Sports Authority” or the
directors on January 1, 2024, reappointing seven people who were the longest standing board
members as of June 30, 2023, removing the power of Metro Nashville’s Mayor and Council to
appoint and confirm the remaining six directors, and giving that appointment power to State
officials. This action violates the Tennessee Constitution’s Home Rule Amendment and Equal
Protection Clauses. For these reasons, the Court should declare the Act unconstitutional and
In support of its requests for a declaratory judgment and temporary and permanent
1. This Court has subject matter jurisdiction over this action pursuant to Tenn.
2. This Court has the power to enter a declaratory judgment and issue injunctive
relief pursuant to Tenn. Code Ann. §§ 1-3-121, 29-1-101, 29-14-102, and 29-14-103.
3. Venue is proper in this judicial district pursuant to Tenn. Code Ann. §§ 4-4-
104 and 20-4-101(a), as this cause of action arose in Davidson County, Tennessee.
PARTIES
by the City of Nashville and Davidson County and incorporated pursuant to Tenn. Code Ann.
§§ 7-1-101, et seq.
5. Defendant Bill Lee is the Governor of the State of Tennessee. The Tennessee
Constitution vests the Governor with “the supreme executive power of this state.” Tenn.
Const. art. III, § 1. As the Chief Executive for the State of Tennessee, Governor Lee has a
constitutional obligation to “take care that the laws be faithfully executed,” id., including that
they be executed consistent with Tennessee constitutional mandates. Governor Lee is sued
in his official capacity and may be served through the Tennessee Attorney General and
Reporter’s Office.
Assembly of Tennessee. Article II, Section 3 of the Tennessee Constitution vests the State’s
legislative authority in the General Assembly and creates the offices of Speaker of the Senate
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and Speaker of the House of Representatives. Article II, Section 11 of the Tennessee
Constitution provides that the Senate and House of Representatives shall each “choose a
speaker.” McNally was validly elected to the position of Speaker of the Senate. Speaker
McNally is sued in his official capacity and may be served through the Tennessee Attorney
the General Assembly of Tennessee. Article II, Section 3 of the Tennessee Constitution vests
the State’s legislative authority in the General Assembly and creates the offices of Speaker
of the Senate and Speaker of the House of Representatives. Article II, Section 11 of the
Tennessee Constitution provides that the Senate and House of Representatives shall each
“choose a speaker.” Sexton was validly elected to the position of Speaker of the House of
Representatives. Speaker Sexton is sued in his official capacity and may be served through
FACTUAL ALLEGATIONS
8. Governor Ned McWherter signed the Sports Authority Act of 1993 into law on
May 17, 1993. 1993 Pub. Acts ch. 378, attached as Ex. 2.
9. The purpose of the Sports Authority Act of 1993 was to address the “immediate
need to promote and further develop recreational opportunities in this state, by facilitating
stadiums, arenas and other recreational facilities, for the holding of professional and amateur
10. Because “effective cooperation between various units of government has been
hampered because of inadequate statutory authority,” the General Assembly saw a need to
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range master plans for the orderly development of sports and recreational facilities and to
11. The Sports Authorities Act of 1993 has been amended several times since 1993.
12. To encourage the Houston Oilers NFL franchise’s move to Nashville, Metro
Nashville formed a sports authority in 1995 to facilitate the construction and operation of a
13. By resolution dated October 10, 1995, the Metro Council determined that it
was “wise, expedient, necessary or advisable” to form the Nashville Sports Authority,
authorized the authority’s formation, and approved the form of corporate charter to be used
14. The corporate charter of the Nashville Sports Authority was subsequently filed
15. The Sports Authority Act of 1993 provides that a sports authority is “a public
instrumentality of the municipality with respect to which the authority is organized.” Tenn.
16. In accordance with the 1993 Act, the Nashville Sports Authority charter states
the Authority is an “instrumentality” of Metro Nashville. (See Authority Charter, art. IX,
charter states when the Authority is dissolved, all funds and properties held by the Authority
“shall vest and be delivered to” Metro Nashville. (Authority Charter, art. X.); see also Tenn.
Code Ann. § 7-67-119 (“Upon the filing of such certificate of dissolution, the authority shall
stand dissolved, the title to all funds and properties owned by it at the time of such dissolution
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shall vest in the municipality with respect to which the authority was organized, and
possession of such funds and properties shall forthwith be delivered to such municipality.”).
18. The current governing body of the Nashville Sports Authority is a board of
directors consisting of thirteen persons appointed by the Metro Nashville Mayor and
approved by the Metro Nashville Council. Tenn. Code Ann. § 7-67-108(a)(4)(A) (effective until
Jan. 1, 2024).1
19. Each member of the Nashville Sports Authority’s board of directors was
20. The term of each member of the Nashville Sports Authority’s current board of
1 A copy of Tenn. Code Ann. § 7-67-108 in effect on May 10, 2023, prior to the Act’s passage,
is attached as Ex. 5 for the Court’s convenience.
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m. Michael Zerah, February 17, 2028.
21. As the municipality (defined by the 1993 Act as any county, metropolitan
government or incorporated city or town) authorizing the Nashville Sports Authority, Metro
pursuant to the Sports Authorities Act of 1993, including leasing or gifting land to the
authority, granting the authority revenues not derived from ad valorem taxes, and assigning
22. The Nashville Sports Authority provides Metro Nashville a copy of its yearly
23. According to its website, the Nashville Sports Authority’s mission “is to
acquire, improve, repair, operate and maintain professional sports facilities and their
surrounding campuses in Metro Nashville and Davidson County, within the provisions of
governing contracts.”
24. The Nashville Sports Authority was instrumental in bringing to Nashville the
Tennessee Titans of the National Football League, the Nashville Predators of the National
Arena by issuing several series of bonds. The Authority currently leases Bridgestone Arena
to the Nashville Predators and has done so since the construction of the arena.
26. The Nashville Sports Authority facilitated the construction of Geodis Park,
home of Nashville SC of Major League Soccer, by issuing $225 million in bonds. The Authority
27. The Nashville Sports Authority facilitated the construction and move of the
Nashville Sounds Minor League Baseball team to First Horizon Park in Nashville by issuing
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$65 million in municipal bonds. The Authority currently leases the stadium to the Nashville
Sounds.
28. Most recently, the Sports Authority issued $760 million in bonds to fund the
construction of a new stadium on the east bank of the Cumberland River in Nashville for the
Tennessee Titans.
29. April 17, 2023, the Nashville Sports Authority Act passed by a vote of 74 ayes
and 23 nays in the Tennessee House of Representatives. On April 21, 2023, the Senate
concurred in the version of the bill passed by the House by a vote of 18 ayes and 6 nays.
30. Governor Bill Lee signed the bill into law on May 11, 2023.
31. Where previously the Nashville Sports Authority was controlled solely by
directors appointed by Metro Nashville, the Act shifted control of six of the thirteen seats to
32. Section 1 of the Act amended Section 7-67-108(a)(4) of the Sports Authority Act
of 1993 by adding a new subsection governing the composition of the board of directors of a
33. Section 1 of the Act vacates the membership of the Nashville Sports Authority
effective January 1, 2024. In so doing, Section 1 will remove each the current thirteen
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35. Effective January 1, 2024, Section 1 reappoints the seven “longest standing
board members”2 as of June 30, 2023, who will serve an amount of time equal to the
remainder of their existing terms, provided that they meet the qualifications for membership
and no more than one appointee is appointed from the same Metro Nashville school district.
The seven longest standing board members of the Nashville Sports Authority as of June 30,
2023, will be reappointed even if one or more of these members no longer serve on the board
appointments to these seven positions in the Mayor’s sole discretion with no requirement for
37. Section 1 authorizes the Speaker of the State House of Representatives, the
Speaker of the State Senate, and the Governor each to appoint two members to the Nashville
Sports Authority board of directors effective January 1, 2024. Section 1 does not require that
any of the State-appointed board members reside in Metro Nashville, and at least one of the
38. The directors appointed by the Governor will serve initial terms that expire on
39. The directors appointed by the Speaker of the House of Representatives will
40. The directors appointed by the Speaker of the Senate will serve initial terms
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41. The only sports authority in existence now or in the future that can satisfy
board that satisfies Section 1’s timing deadlines is the Nashville Sports Authority.
42. The Nashville Sports Authority Act did not amend Tenn. Code Ann. § 7-67-
Nashville, even though Metro Nashville no longer appoints all of the Authority’s board.
43. The legislative history of the Nashville Sports Authority Act demonstrates that
the Act was explicitly drafted to target Metro Nashville and the Nashville Sports Authority
44. The consistently stated rationale for passage of the Act was that the State had
approved over $500 million in funds toward the construction of the new Nissan Stadium in
Fiscal Review Committee stated bluntly in its bill summary that the Act “[v]acates and
reconstitutes the board of directors (Board) for the Metropolitan Sports Authority (Authority)
of Nashville, effective January 1, 2023.” Fiscal Memo. House Bill 1197–Senate Bill 1335 (Mar.
46. Representative Ryan Williams (R–Cookeville), the Act’s House sponsor, made
clear that the legislation focused solely on Metro Nashville because of the State’s decision to
help fund construction of the city’s new football stadium. He explained that “the State has
invested more than half a billion dollars in this project, and the State seeks to have a voice
3 https://www.capitol.tn.gov/Bills/113/Fiscal/HB1197.pdf.
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at the table as it relates to the decisions.” Hearing on H.B. 1197 on House Floor, 2023 Leg.,
113th Gen. Assembly (Apr. 17, 2023) (statement of Rep. Ryan Williams, R-Cookeville).4
appointed from Davidson County, Representative Williams stated: “No, they will not all be
from the senatorial district or Metro Davidson County because the half-a-billion-dollar bonds
were paid for by seven million people in the State of Tennessee. That is the reason for this
bill, and that’s why we’re here before you today.” Id.5
48. In further explaining the bill’s purpose, Representative Williams was even
more direct that its intended target was Metro Nashville: “The reason why is because we
issued a half a billion dollars in bonds, the State did, using taxpayer dollars and they
currently have no voice on this board. As it relates to who was there or not there, Metro
Nashville is issuing their own bonds and advocated to this body for us to issue a half a billion
dollars in bonds because they didn’t have the capability to do it all themselves. They didn’t.”
Id.6
Tennessee Titans organization advocated for the State’s $500 million grant, not Metro
Nashville.
50. In response to a suggestion that the bill be inclusive of other counties with
sports authorities, Representative Williams stated: “[N]one of this would be possible without
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the State of Tennessee because as we were told, if we all didn’t do this together, Metro
Nashville and the State of Tennessee, this entity would be gone. And so we have the State of
51. Senator Paul Bailey (R–Sparta), the Senate sponsor of the bill, explained to
the Senate and Local Government Committee that the bill was filed because “last year this
General Assembly appropriated a $500 million bond that would allow for the building of a
new stadium. That does not include the tax zone that we had previously approved for that
campus area around the Tennessee Titans. So I think the state and Tennessee taxpayers
have made a huge investment into this [Nashville] board’s authority.” Hearing on S.B. 1335
Before Senate & Local Gov’t Comm., 2023 Leg., 113th Gen. Assembly 21 (Mar. 28, 2023)
52. But this rationale is inconsistent with the State’s treatment of other sports
53. There are six active sports authorities in the State of Tennessee: the Nashville
Sports Authority, the Memphis and Shelby County Sports Authority, the Chattanooga Sports
Authority, the Williamson County Sports Authority, the Knoxville-Knox County Sports
would be affected by the Act because Shelby County received $350 million dollars from the
State toward improving the FedExForum and Simmons Bank Liberty Stadium in Memphis,
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Senator Bailey confirmed it would not. Id.9 (Sen. Yarbro: “How much of that is allocated for
sports facilities in Shelby County in this year’s budget, Mr. Chairman? Anybody know? I
think it’s three hundred and fifty million dollars. And under this legislation, how much
representation will McMinn County have in the Shelby County sports authority?” Sen.
Bailey: “Probably zero.” Sen. Yarbro: “Because this doesn’t affect that. Correct?” Sen. Bailey:
“No, sir.”).
55. The State also recently awarded a $13.5 million grant to the Sports Authority
of Knoxville and Knox County. Neither the Act nor any other legislation provides the State
56. Indeed, the Sports Authorities Act of 1993 allows all sports authorities to
accept grants from the State and has allowed such acceptance since its original passage.
Tenn. Code Ann. § 7-67-109(14) (granting sports authorities the power to accept “donations,
contributions, revenues, capital grants or gifts” from the State). Despite the 1993 Act’s having
authorized the acceptance of such State funding, the Nashville Sports Authority Act does not
give the State seats on any other sports authority’s board of directors.
57. To the extent the State has concerns regarding expenditure of State funds, the
Sports Authorities Act of 1993 provides the State with oversight, as Section 7-67-110 requires
all sports authorities to perform an annual audit to be reviewed by the comptroller of the
treasury.
58. In presenting the Act in committee, Senator Bailey referenced that the State
granted a special tax zone to the area surrounding the new Nashville stadium. Hearing on
S.B. 1335 Before Senate & Local Gov’t Comm., 2023 Leg., 113th Gen. Assembly 21 (Mar. 28,
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2023) (statement of Sen. Paul Bailey, R-Sparta) (“Well, most recently, last year this General
Assembly appropriated a $500 million bond that would allow for the building of a new
stadium. That does not include the tax zone that we had previously approved for that campus
area around the Tennessee Titans. So I think the state and Tennessee taxpayers have made
a huge investment into this board’s authority.”)10; see also Hearing on H.B. 1197 on House
Floor, 2023 Leg., 113th Gen. Assembly (Apr. 17, 2023) (statement of Rep. Ryan Williams, R-
Cookeville) (“[T]his municipality had requested on four other instances sales tax schemes
59. Special tax zones for sports facilities are not unique to Metro Nashville. For
example, the General Assembly recently approved special tax zones for sports facilities in
Memphis and Knoxville. See 2023 Pub. Acts ch. 405 (codified at Tenn. Code Ann. § 67-6-
103(d)(1)(A)(viii)) (Memphis); 2022 Pub. Acts ch. 1069 (codified at Tenn. Code Ann. § 67-6-
712(f)) (Knoxville). But the State did not pass legislation vacating locally appointed seats on
those municipalities’ sports authorities and replacing them with state-appointed directors.
V. Metro Nashville Has Not Consented to the Makeover of Its Sports Authority’s
Board of Directors.
60. Despite being targeted solely at Davidson County, the Act does not provide for
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CAUSES OF ACTION
61. Plaintiff adopts and incorporates all allegations in the preceding paragraphs
62. The portion of the Local Legislation Clause of the Tennessee Constitution
[A]ny act of the General Assembly private or local in form or effect applicable
to a particular county or municipality either in its governmental or its
proprietary capacity shall be void and of no effect unless the act by its terms
either requires the approval by a two-thirds vote of the local legislative body of
the municipality or county, or requires approval in an election by a majority of
those voting in said election in the municipality or county affected.
63. Any legislation that omits local approval language required by the Local
Legislation Clause is “absolutely and utterly void.” Farris v. Blanton, 528 S.W.2d 549, 551
(Tenn. 1975).
64. The Nashville Sports Authority Act is local in form and effect. Based on its
population, form-of-government, and timing requirements, the Act applies only to Metro
Nashville. There is no reasonable expectation that the Act will apply to any other city, county,
65. The Act vacates the Nashville Sports Authority’s current board of directors on
January 1, 2024. The Act reappoints the seven longest standing current board members as
of June 30, 2023, to serve the remainder of their existing terms, after which the Mayor shall
make all subsequent appointments to these seats without Metro Council approval. The Act
permanently vacates the positions held by the remaining six board members and transfers
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the appointment power for their positions from the Metro Nashville Mayor and Council to
State officials.
66. There is no reasonable expectation that the Act will apply to any other city,
67. The Act does not contain a provision requiring consent of the voters of Metro
68. Because the Act applies only to Metro Nashville and its sports authority
without the mandatory local approval language, it violates the Local Legislation Clause in
69. Metro Nashville requests that the Court enter a declaratory judgment holding
the Nashville Sports Authority Act unconstitutional under the local-approval requirement of
70. Plaintiff adopts and incorporates all allegations in the preceding paragraphs
71. The portion of the Local Legislation Clause of the Tennessee Constitution
The General Assembly shall have no power to pass a special, local or private
act having the effect of removing the incumbent from any municipal or county
office or abridging the term or altering the salary prior to the end of the term
for which such public officer was selected....
72. The Nashville Sports Authority Act is local in form and effect. Based on its
population, form-of-government, and timing requirements, the Act applies only to the
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reasonable expectation that the Act will apply to any other sports authority absent future
legislative action.
73. The Nashville Sports Authority’s current board of directors are municipal or
74. Section 1 of the Act vacates the Nashville Sports Authority’s current board of
directors on January 1, 2024. The Act reappoints the seven longest standing current board
members as of June 30, 2023, to serve the remainder of their existing terms, after which the
Mayor shall make all subsequent appointments to these seats without Metro Council
approval. The Act permanently vacates the positions held by the remaining six board
members and transfers the appointment power for their positions from the Metro Nashville
75. By vacating all of the Nashville Sports Authority’s current board of directors
on January 1, 2024, the Act removes them from office and abridges their terms of office.
76. By permanently vacating the seats of six of the Nashville Sports Authority’s
board of directors, the Act removes them from office and abridges their terms of office.
77. By vacating all of the Nashville Sports Authority’s current board of directors
and permanently vacating the seats of six of the Nashville Sports Authority’s board of
directors, the Act violates the Local Legislation Clause’s absolute prohibition on removing or
78. By vacating all of the Nashville Sports Authority’s current board of directors
and permanently vacating the seats of six of the Nashville Sports Authority’s board of
directors, the Act infringes on Metro Nashville’s right of local sovereignty that the Local
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79. Metro Nashville requests that the Court enter a declaratory judgment holding
the Nashville Sports Authority Act unconstitutional under the Local Legislation Clause’s
80. Plaintiff adopts and incorporates all allegations in the preceding paragraphs
81. The full text of Article I, Section 8, of the Tennessee Constitution states “[t]hat
outlawed, or exiled, or in any manner destroyed or deprived of his life, liberty, or property,
82. The full text of Article XI, Section 8 of the Tennessee Constitution states as
follows:
The Legislature shall have no power to suspend any general law for the benefit
of any particular individual, nor to pass any law for the benefit of individuals
inconsistent with the general laws of the land; nor to pass any law granting to
any individual or individuals, rights, privileges, immunities, or exemptions
other than such as may be, by the same law extended to any member of the
community, who may be able to bring himself within the provisions of such
law. No corporation shall be created or its powers increased or diminished by
special laws but the General Assembly shall provide by general laws for the
organization of all corporations, hereafter created, which laws may, at any
time, be altered or repealed and no such alteration or repeal shall interfere
with or divest rights which have become vested.
83. The Nashville Sports Authority Act treats the Nashville Sports Authority
differently than any other sports authority in the State for no rational purpose.
84. Metro Nashville requests that the Court enter a declaratory judgment holding
the Nashville Sports Authority Act unconstitutional under the Equal Protection Clauses in
Article I, Section 8 and Article XI, Section 8 of the Tennessee Constitution and an order
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PRAYER FOR RELIEF
Randy McNally, and Cameron Sexton, in their official capacities, and prays that the Court
1. A judgment and order declaring the Nashville Sports Authority Act facially
Speaker McNally, and Speaker Sexton from implementing the Nashville Sports Authority
3. Such further and general relief as the Court deems appropriate at law or in
equity.
Respectfully submitted,
18
150 Third Avenue South, Suite 2800
Nashville, Tennessee 37201
(615) 742-6200
[email protected]
[email protected]
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