Univ. Of Louisville Amends Lease To Help Cover KFC Yum! Center Construction Costs
The Univ. of Louisville and the Louisville Arena Authority have "agreed on a three-year deal that will provide the authority with an estimated" $1.5M to help cover construction costs for the KFC Yum! Center, according to Gerth & Hall of the Louisville COURIER-JOURNAL. Under the agreement, the amount UL receives "for advertising revenue from signs inside and outside of the arena will be capped, with any additional revenue remaining with the Arena Authority." For the fiscal year that ended June 30, UL’s take "is capped at $750,000, and for the current year, the cap is $850,000." The cap for the following year "will be $950,000." KFC Yum! Center GM Dennis Petrullo said without the new arrangement, UL would have received “well north" of $1M in sign advertising revenue for FY '12-13. After the three-year agreement ends, the terms of UL’s contract "will revert to the original agreement," which paid UL "half of what the authority takes in for advertising in the main bowl of the arena and 33 percent of ad revenue from TV monitors and other temporary signs" (Louisville COURIER-JOURNAL, 10/14). Louisville Arena Authority Chair Larry Hayes said, "The real significance of the agreement is just the cooperation between the university and the Louisville Arena Authority as we begin to look at how we do business in the future on the marketing side." He added that this change "would not necessarily lead to other changes" with the school's lease agreement (BIZJOURNALS.com, 10/14).