SBD/July 12, 2012/Facilities

AEG Finalizes 10-Year Deal To Take Over Operation Of KFC Yum! Center

Deal requires AEG to guarantee profit of at least $1M a year from arena operations
AEG has “finalized its contract to take over operation” of the KFC Yum! Center from the Kentucky State Fair Board, according to Marcus Green of the Louisville COURIER-JOURNAL. AEG yesterday also formally “named Dennis Petrullo as the building’s general manager.” Petrullo was AEG Facilities Dir of Event Bookings for the Louisville area and "has helped bring events to the Yum! Center.” The KSFB had operated the arena since it opened in ‘10. The 10-year management deal “requires AEG to guarantee a profit from arena operations of at least $1 million every year -- money that the arena authority can put toward construction debt.” AEG “will receive a $480,000 annual management fee and an incentive of more than $100,000 for every year total revenue from arena operations exceeds $10.2 million.” Louisville Arena Authority General Counsel Ed Glasscock said that the new deal “is different because AEG will be responsible for operating expenses and can’t pass those through to the arena authority.” The KSFB “was under contract to manage the building until 2017” (Louisville COURIER-JOURNAL, 7/12).
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