January 29, 201313 yr A white paper on the lease and how the only group profiting from it is UL. Lost $50k per day in 2011. KFC Yum! Center White Paper Report says that the bonds have already been downgraded to "junk" by Moody's. Operating expenses are more than twice that which was projected. Allegations of the board being too close to UL. Ouch.
January 29, 201313 yr I don't know what the Metro Council or Mayor Abramson or the local banks or whoever must have done to Denis Frankenberger, but he's furious. He was one of the people out in front of the anti-bridge project movement and now he seems to want to be out in front of this. No serious economic report should have exclamation points. Why does he insist on doing things this way?
January 29, 201313 yr Sounds like the PBS lease, which the City can't get out of. Is there any chance the lease for the YUM center can be renegotiated?
January 29, 201313 yr I don't know what the Metro Council or Mayor Abramson or the local banks or whoever must have done to Denis Frankenberger, but he's furious. He was one of the people out in front of the anti-bridge project movement and now he seems to want to be out in front of this. No serious economic report should have exclamation points. Why does he insist on doing things this way? Certainly a once sided opinion, but I would think that it would be hard to deny there is trouble in River City.
January 29, 201313 yr Sounds like the PBS lease, which the City can't get out of. Is there any chance the lease for the YUM center can be renegotiated? UofL has no incentive to do so. Ramsey and Jurich pulled one over on us. If the Arena Authority defaults on its debts, the university then has first rights to buy the facility outright. I'm 100 percent against cities building arenas/stadiums for sports teams. This is just one of the reasons why.
January 29, 201313 yr Certainly a once sided opinion, but I would think that it would be hard to deny there is trouble in River City. Always has been. Always will be. This is just the newest development debacle. The "outraged" developer and LAA board member mentioned in the white paper Clyde linked who resigned in disgust after mentioning that UofL should renegotiate its lease is the same guy who just made millions by conning the city, state and federal governments into putting the new VA hospital on a tract of land he owned in East Louisville for which he was paid MILLIONS, despite it being a terrible location for the facility.
January 29, 201313 yr The report is very unprofessional. Looking at the numbers. 2011 operating expenses were over $12M. Thats $1M a month or over $30,000 PER DAY. Maybe they to turn the lights off during the day...
January 29, 201313 yr Shocker: U of L has right to buy KFC Yum! Center if Arena Authority defaults » Insider Louisville "An attorney at a top firm initially described the clause as “unusual,” adding the right to buy the arena after a default “would be typical of what a marquee tenant would want.” Another attorney and contract expert said, “This is precisely what I would have hoped U of L would do. They’d be crazy not to.” But a third contract attorney said, “How often have you heard of the tenant having a lease giving them the right to buy a house if the house goes into foreclosure? Wouldn’t that be an incentive to NOT pay rent … or to pay it so slowly it inflicts pain on the owner?”" The bolded is what what I was thinking before find this article... It does some like some daylight on the lease and the overall business are lacking.
January 30, 201313 yr Author UofL has no incentive to do so. Ramsey and Jurich pulled one over on us. If the Arena Authority defaults on its debts, the university then has first rights to buy the facility outright. I'm 100 percent against cities building arenas/stadiums for sports teams. This is just one of the reasons why. Could UL afford it?
February 5, 201313 yr Denis Frankenberger was on Mandy Connelly's show today. A couple of things that stuck out... He didn't believe the clause that gave UofL the first right of refusal in the case the Yum Center went bankrupt would survive a bankruptcy ruling. He question whether or not the lease with UofL was even valid considering the circumstances surrounding it conception. He all but accused the Arena Board and UofL Athletic board of wrong doing. I believe he said the attorney for the Arena Board was a director on the Athletic Board. Also said there were other common players. Going by just his numbers there is only one conclusion to reach if something doesn't change and that is the Yum Center will go bankrupt. The city of Louisville got their selves into a mess with this. The fact that the state is giving one cent to the debacle ticks me off to no end.
June 13, 201313 yr A little good arena news ahead? AEG projecting $12.1 million revenue for fiscal 2014 Headline aside (because 2014 fiscal projections don't mean much), the article says that the arena is running a $2.6 million profit so far this year and that all debt service is up to date. It's a start.
June 13, 201313 yr Everyone should remember UL wanted an on-campus, cheaper arena. NCAA volleyball finals looked good on TV in there. The need more of of those and an NCAA Mens Regjonal. I heard the only recommendation Pitino had was an extra large coat room at the Yum center.
August 20, 201313 yr KFC Yum Center posts better-than-expect profits Well, if nothing else, it can now certainly be said that at least AEG is a better facility manager than the Fair Board. Revenues: $8.7 million Profits: $2.1 million
August 20, 201313 yr KFC Yum Center posts better-than-expect profits Well, if nothing else, it can now certainly be said that at least AEG is a better facility manager than the Fair Board. Revenues: $8.7 million Profits: $2.1 million This statement(As part of its contract with the arena authority, AEG has guaranteed that the Yum Center will generate a profit of at least $1 million per year.) from the article makes me a little bit skeptical of their numbers, that is at least until an outside audit is done. There are a lot of ways to finagle financial statements to pump up profits, at least for the short term, which by the way, I'm not saying they have done. Hopefully they are really turning a profit.
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