Tom Jurich to completely destroy whats left of the UofLOL fanbase

[ColonelSteve]

The University of Louisville Athletic Association won’t be happy.

The too long, didn’t read of the report? That the KFC Yum! Center will fail and leave taxpayers on the hook:

Over $800 million in Debt
Operating Costs Exceeding $92,000 per Day
Lease Giving Away Millions to Tenant and Others
Losing more than $50,000 per day during 2011, more than $37000 per day during 2012
More than $30 million in losses since opening
Financial Impossibility to Succeed
A Lease that is Choking the Financial Life from the Arena (unless the Lease is renegotiated)

With all of that, there’s little left to wonder about why UofL would fight against bringing an NBA team to town. It’s because UofL would lose its sweetheart deal that’s subsidized by taxpayers under the guise of bettering downtown.

http://thevillevoice.com/2013/01/29/...arenas-future/

[Catonahottinroof]

UL will buy it if it goes belly up.

[ColonelSteve]

UL will buy it if it goes belly up.

Why? There's no money to be made in it without an NBA team, it would destroy that athletic department

[Catonahottinroof]

http://insiderlouisville.com/news/20...rity-defaults/

[BarristerCat]

Why? There's no money to be made in it without an NBA team, it would destroy that athletic department

There is money to be made in it without an NBA team, though. UofL controls booking dates and right now they are using that ability to keep money makers like concerts, sports exhibitions, etc. out of the Yum to some degree. In other words, UofL is directly responsible for a sizeable portion of the arena's inability to operate at a profit. Once they buy it they'll open the booking floodgates and rake in the cash. UofL gets a windfall.

Oh and it won't cost them what is still owed on the arena, either. So, they won't have near the same amount of debt to deal with when they take over.

[KSRBEvans]

This has concerned me greatly since the terms of the lease were made public. Giving U of L control of the schedule essentially creates a white elephant which all but guarantees default. I'm not holding my breath, but whomever gave them such control over this should be made to account for it.

[suncat05]

I don't live in Louisville anymore. Who built it? And who holds the title for it? The city of Louisville, Jefferson county, who has actual control of the building?
And who, or what parties negotiated the contract for the use of the facility, and who actually oversees the terms of that contract?

[Catfan73]

The thing is kind of the opposite of the success story of Slugger Field. It could have been built for half the price about four blocks south of where it sits (the "LG&E site"), at the so-called Water Company site. While Jurich and Ramsey supposedly preferred this site or one at the expo center near campus, Rick Pitino announced publicly that he would never coach at the Water Company site. Papa John Schnatter and David Jones (Humana) paid for a study that showed the WC site would be much less expensive, but (then Governor and Mayor) Fletcher and Abramson decided a palace on the waterfront would be the best thing for Louisville since sliced bread. The UL trio quickly jumped on board and the Curious Urinal began a propaganda campaign to sway public opinion.

Everyone knew the lease payments were going to be untenable, but Louisville fans are anything but upset about getting what amounts to a tax-payer funded arena without actually having to sell the public on new taxes to pay for it. Everyone else is pretty upset about it though, and the lease will have to be re-worked to where the university doesn't completely control the thing unless they want to start paying the bonds. A supposedly public facility, it's anything but that. Currently the university even gets the revenues from the concessions when non-university events like concerts are scheduled, and are under no obligation to send any of that money back to the city to help with the bond payments.

Sun, it was built and is owned by the Louisville Arena Authority (created by the Metro government), and operated by the Kentucky State Fair Board. The city basically got it built by selling a pipe dream that a Tax Increment Financing district would cover the bond payments, and that the city would guarantee to cover any shortfall. When the city can no longer do that however, the state will have to make up the difference. Dr. Ramsey will probably allow the lease to be reworked, especially when they discover how hard it is to play basketball with no lights or heat.

[CitizenBBN]

Great summary catfan73.

They blocked UK and IU playing there this year, what would have been a guaranteed sellout with a lot of hotel rooms booked and bars attended in the district that is being taxed to subsidize the whole thing. Blocked IU v Notre Dame a few years ago, etc. Money that project desperately needs.

It's unreal this thing got done, and I really do think the taxpayers may have a case against the people who did this deal. It's borderline corruption.

[Catonahottinroof]

Dr. Ramsey will probably allow the lease to be reworked, especially when they discover how hard it is to play basketball with no lights or heat.

And if I am Mayor Fischbait, I let the lights go out before I make a single principle/interest payment.

[bigsky]

This is a common story of many a ballyhooed performing arts center/arena the taxpayers are conned into paying for and run by ideologues without a bit of common sense.

O & M and debt service are beyond the comprehension of these people. If you toss in covering depreciation, they'll go nuts.

[CitizenBBN]

O & M and debt service are beyond the comprehension of these people. If you toss in covering depreciation, they'll go nuts.

They raided their maintenance reserves already and stopped putting in, and while some seemed to know the impact of that there was also a comment about the money not being needed now for maintenance. lol.

[dan_bgblue]

Everyone knew the lease payments were going to be untenable, but Louisville fans are anything but upset about getting what amounts to a tax-payer funded arena without actually having to sell the public on new taxes to pay for it.

Which I believe was the original intent of this farce. Host and others managed to build an arena for UL that cost a lot more than it should have, and the taxpayer is left holding a bag they never would have agreed to if they had known the real intent and preordained outcome.

[CitizenBBN]

Which I believe was the original intent of this farce. Host and others managed to build an arena for UL that cost a lot more than it should have, and the taxpayer is left holding a bag they never would have agreed to if they had known the real intent and preordained outcome.

What? Host is a low life liar? Say it isn't so...

The numbers never did add up, the tax revenue was never going to sustain it unless it was sold out almost every night. Same thing the Webbs sold here for Centerpointe and 100s of other projects we've seen over the years.

They always promise it won't cost the taxpayers anything and they'll get this great shiny thing. It almost always ends up costing them of course, and then they are all for the next one as well. They don't learn very fast those taxpayers.

[kybobcat]

Only thing this will do is make it that much harder to get any public funds to renovate Rupp Arena.