How Not To Finance An Arena

[TedBaxter]

https://www.scribd.com/doc/122815048/KFC-Yum-Center-White-Paper

[Jimmy Lemke]

Field of Schemes is a great book on how new professional arenas are choking municipalities. It's definitely topical as far as Milwaukee is concerned.

[Goose85]

My guess is the Yum Center did not receive approximately half the cost to build the facility by way of a gift (Kohl / New Owners). Louisville did not attract an NBA team, so they do not have a tenant that uses the building over 40 times a year that just signed an incredibly lucrative TV deal (NBA TV).

Debt service in Louisville would not have options such as the jock tax to help pay for any debt service on the facility.

While MU is looking to contribute funds toward the facility in return for potential future income streams (game day revenue), my guess is Louisville did not, and it sounds like it has a pretty nice lease agreement.

$800 million in debt. How do you turn a facility that cost $238 million to build into a facility that is $800 million in debt? What they heck did they do, not book any other use for the facility other than Louisville hoops?

[TheSultan]

And the main tenant is a university that isn't going to get up and move away.

[TedBaxter]

If the article is correct, they lose money on the University of Louisville events and the Louisville women play there as well. I don't think the Kohl Center broke even for years either and maybe still doesn't. I'll check that.

There were a handful of concerts and other entertainment sandwiched in between the university games. The Bradley Center has the Bucks, the Admirals and Marquette plus more concerts and other events than the Yum Center.