The Univ. of Louisville's amended lease agreement with the KFC Yum! Center "includes a new annual payment" of $2.42M in addition to the $1.3-1.8M per year the university already pays" to use the arena, according to a front-page piece by Schneider & Greer of the Louisville COURIER-JOURNAL. Under the plan, UL "will contribute an extra" $75M toward the arena over the next 30 years. UL women's volleyball will be "played on campus instead of at the arena, resulting in an annual $80,000 credit from the university toward the arena." In addition, UL will "relinquish control of October dates at the arena." But the Louisville Arena Authority (LAA) will give UL the "priority for use of the facility for basketball games and scrimmages in October and during the 'priority use period,' which is from Nov. 1 through the end of the college basketball postseason." The UL BOT voted 7-2 in favor of the deal. Former BOT Chair Larry Benz called the arena an "absolutely failed economic initiative." LAA officials have "warned that with debt payments due to jump significantly" by '20, the arena "could go into default" (Louisville COURIER-JOURNAL, 7/21).
WHERE TO GO FROM HERE? In Louisville, Marty Finley noted Papa John's Founder & CEO John Schnatter, who is a member of the UL BOT, "abstained from the vote, saying he doesn't feel this deal fixes the problem or prevents the arena authority from seeking more money" from the school in the future.UL interim President Gregory Postel "made it clear" that the school will be "paying its fair share under the new deal and would not renegotiate the deal in the future." However, some BOT members were "left unconvinced." LAA Chair Scott Cox said that his agency will "work to renegotiate a deal" giving the school 3,000 parking spaces in and around the arena during basketball season and will "set aside up to 96 tickets in two suites during concerts to help" UL market the suites (BIZJOURNALS.com, 7/20).
