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Yum Center is over $800 million in debt



This is the front page of Frankenberger’s report, and it is awesome.

It’s time to do something about the Yum Center. Denis Frankenberger, the former president and CEO of Advance Machinery Co., released a 38-page study on the arena, which he calls a “financial albatross.” Why? The lease between the Louisville Arena Authority and the University of Louisville
has created a choke hold on the arena’s ability to turn a profit. Frankenberger says the arena is over $800 million in debt, and costs $92,000 per day to operate.

Here is a breakdown of his findings from InsiderLouisville.com:

– Lost more than $50,000 per day during 2011

– Lost more than $37,000 per day during 2012

– For each UofL men’s game the Arena Authority incurred a $33,235 loss

– For each women’s game the Arena Authority incurred a $87,624 loss

– For each “Other UofL sponsored event” the Arena Authority incurred a $87,624 loss

– For 2011, Frankenberger calculates an $18 million loss.

How do they save the Yum Center from bankruptcy? Renegotiate the lease. Frankenberger is currently holding a press conference in downtown Louisville to go over his findings and potential solutions.

Your move, Jurich.

Article written by Mrs. Tyler Thompson

No, I will not make you a sandwich, but you can follow me on Twitter @MrsTylerKSR or email me.

107 responses to “Yum Center is over $800 million in debt”

  1. Wagon Will

    So THAT’S why they are the most profitable athletics department.

  2. Bklue Boy

    1st. Makes the idea of an NBA team coming there more sensible to thismoney pit.

  3. fb>bb

    Sounds like the FBI needs to get involved to see who got kickbacks for agreeing to this deal.

  4. Jones Returns

    sell it to UK

  5. believeblue

    It’s ok, we will let them play on our Blue floor at Freedom Hall if they get evicted. lol

  6. SexnNursinHomes

    Ricky p and Jurich gonna have to start spreadin legs for $$$$

  7. Good Deal TJ

    Louisville made a great deal….its not on them. I think the Arena Authority needs to be investigated. Does UL get to buy it out of bankruptcy as 1st tenant? I say kudos to Jurich for making a deal with a bunch of idiots and for his sake, he better hope it was a clean deal!

  8. fb>bb

    5. UofL can’t get evicted. If it goes into default, then UofL owns it for free and the taxpayers have to pay it off.

  9. dave

    7- pretty sure many ppl arent necessarily faulting jurich, but are saying that jurich/uofl were basically negotiating with itself. and thats where the lease and everyone involved should be scrutinized

  10. Where's a Lawyer when you need one?

    I’m not a lawyer, but these are taxpayer dollars. The fact is that this lease was negotiated between the Fair Board and UofL, which basically means UofL and UofL. The Fair Board has a fiduciary responsibility to negotiate in the best interest of the tax payers. They obviously did nothing even close to this, and their ties to the UofL program are obvious. I don’t blame Jurich for negotiating the best deal he could – that’s his job. I do blame the Fair Board and I don’t see how this isn’t fraud – and a prosecutable offense. When is someone going to step up for the taxpayer here?

  11. twnky

    Cutting your nose off to spite your face. Lol

  12. kadizkat

    I see Kentucky taxpayers having to do a “bailout”.

  13. Bob Cobb

    U of L is not capable of purchasing that facility in the event of default.

  14. danthecat

    Folks …If I’m not mistaken , otis will eventually OWN the arena if this deal falls through…

  15. Where's a Lawyer when you need one?

    #7 – I think I remember hearing that they do have the option of buying the arena in the event of a default.

  16. stoopspoopsicecream

    Something tells me there will be no mention of this on the local news or in the CJ.

  17. cjcat

    Didn’t Guru Jim Host lead this expedition?

  18. Bmac

    Meanwhile Jurich is heating his office with $100 bills and occasionally yelling f this city and its hard working tax payers

  19. 10011010101010

    BBN is about to buy University of Louisville a Basketball Arena. smh

    All because the Arena Authority was filled with UofL Boosters who turned around and offered Tom Jurich a dream of a deal.

  20. Where's a Lawyer when you need one?

    That is exactly why they don’t want an NBA team there. An NBA team might put the arena in the black and then they won’t be able to pick it up for pennies on the dollar later. Publicly they say they don’t want to spread out the loyalties of fans and deal with booking dates etc., and your average UL fan is too ignorant to see through that charade.

  21. bluecreeker

    Louisville taxpayers have already been asked to give $3M towards the interest payments on the bonds issued……yea that’s right, they can’t even make the interest payments on the bonds, which means they are paying -0- on the debt.

    The “TIF” Financing isn’t working, probably will not ever work, should be investigated as to how they got this deal done.

    Regardless of what new revenues come to the YUM….UofL get 80% of the haul.

    Stupid, stupid, stupid deal…….and the UofL fans love it.

  22. Where's a Lawyer when you need one?

    Problem is that there is ZERO incentive for Jurich to renegotiate. None whatsoever. Unless somebody rallies the torches and pitchforks, which is unlikely.

  23. Get real

    The State Fair Board ran the Yum Center and it operated at a loss. The Yum has a new company running the arena and is expected to turn a profit again.

    http://www.whas11.com/news/business/New-management-for-KFC-Yum-Center-credited-for-profits-188431471.html

  24. fb>bb

    13. UofL doesn’t have to buy the facility. If defaulted, the facility(and all the income) is deeded over to UofL and the Kentucky taxpayers have to pay the debt and the expenses. UofL would be the wealthiest athletic program in the history of athletics.

  25. Lawyer

    Why does it cost $92,000 per day to operate? That is a TON of money. This appears to be more of an operational problem than anything else. There are a lot of days where there are no events there and to average such a high daily expense appears excessive.

    As to the UofL lease, there would be some serious implications there if the arena were to file bankruptcy. It would be hard to reject UofL’s lease in the bankruptcy court in the western district of kentucky with the purchase option being there. UofL could also probably cover that purchase option or raise the funds to purchase it. Either way, I am not sure where a Chapter 11 would help restructure the arena’s debts when it appears that there are serious operational problems that need to be addressed.

    As to the negotiation of the lease, both sides were represented by counsel and it appears there were arms lengths negotiations. The reality is that UofL was going to get a good deal as the arena could not be built without them. Without UofL there is simply no tenant that would furnish enough yearly rentals to even make the deal come close to working based on the projections.

    The NBA claim point is a farse. When you look at the numbers, it simply would not work. It’s actually pretty sad that the City of Louisville paid an attorney all that money for meetings that amounted to nothing. Hard to compete with much larger cities like Seattle that were vying for teams.

    As to the report, who is this guy and what is Advance Machinery Co.? Who paid for the report? All questions that can sometimes reveal a lot into the conclusions made.

    Either way, this arena needs to work for the Commonwealth. A lot of money vested by a lot of people, with a lot of different interests. However, if the arena is not operational, no one wins.

  26. Lawyer

    20, the problem isn’t really the venue itself as to the lack of payments. Most of it has to do with the slower development around the arena than expected. Had whiskey row and the other areas had restaraunts, business, etc. that came in sooner and raised the tax base, this probably would be a moot point. The bonding was all done based on the expected revenues from the tax base as opposed to the events itself.

  27. Are UK fans this STOOPID

    Somebody get Denis Frankenberger a spot on the Arena committee. I’m sure he is still pissed that he wasn’t included in the planning. The guy has a history of making conspiracy theories when he not included in planning. FYI: many bonds in the US are not doing well right now and the NATION’S credit rating even took a hit. I’m sure things will go better once the economy is better and this new company over seeing the arena makes changes to the compensations arena workers were getting. For more info on Frankenberger:

    http://www.whas11.com/home/Petition-filed-calling-for-propertys-removal-from-national-registry–136031833.html

    Dude has a history of being a cry baby.

  28. Bob Cobb

    24. You are wrong about that. U of L would have to pay off $349 million dollars in bonds OR match the best bona fide offer to purchase the arena. They won’t be able to do either.

  29. The Truth speaks

    Is Lawyer latin for UofL fan. Get real buddy, tax payers are getting bent over, unless your left wing liberal that should disturb you.

  30. fb>bb

    28. The best bona fide offer won’t be much because without UofL it isn’t worth a dollar.

  31. PV

    Come on people, UL does not get it if it goes into default. The have “First Right of Refusal” to purchase it, but by no means will UL jsut get it. UL would just have the right to match any offered price, but in no way shape or form can UL just walk up and say, we will buy this for $1.00.

    Also, if this goes into bankruptcy, any court will not let UL get any of the money. If you ask me, while bankrupcty would be a black eye and hurt city and state credit, it is the best solution to this problem if you ask me.

  32. Close to politics

    The tactics used by Jurich are no different than any major bank. They screw the taxpayer to pick up a default at a fraction of the cost.

    The only problem here is that Jurich and the University of Louisville could be found liable for the finacial downfall simply by prosecution of ethical economical values. This will spell disaster for UofL and Jurich not only by financial means but by jail time as well. The federal government is coming down on these state governments during our economic downfall because this is being played out across the US.

    I know that most UofL fans aren’t very smart but surely they aren’t this stupid! Jurich is making them pay for his snake deals. As a finance lawyer I can tell you that the state and federal officals will get involved and not only will he be fired but he will be prosecuted.

  33. UKBlue1!

    The State attorney General, Jack Conway should investigate. It won’t happen because the Lt.Gov. would be involved. I see a personal property tax increase happening in Jeff Co. It will cost me about another $150-225 per year when its done.

  34. PV

    30 – their would be no offer, therefore UL would have no offer to counter (1st Right). Also, someone could buy it, and force UL to renogotiate or lose their lease. And guess what, I bet the same person who bought it would make a clause that says Freedom Hall could not compete with bball team, therefore UL would have no choice but to sit down and talk.

    In the end, UL is going to have their back against the wall and have no choice.

  35. Tax me not

    Does anyone want to guess why Mayor Fischer (who is a big UL booster) is calling for a new 1% sales tax in Louisville? He claims that it will create a special project fund but it will really go to help bail out the arena. I love the fact that the Arena Board was loaded with UL board members and boosters who “negotiated” the “armslength” lease with UL. Can you say conflict of interest?

  36. Funny

    If I could afford it I would purchase the bond and let ivy take over the building. I would force UL back to freedom hall and make them play on the blue floor.

    The taxpayers really should stand up. This should not be tolerated in the least

  37. Tax me not

    33. Jackass Conway is a Louisville democrat and part of the local machine. He is not going to investigate the other Louisville democrats who helped put him in office. He is also a do nothing attorney general who wants nothing better than to become a do nothing in Washington, DC. He will not rock the boat in Louisville. There is nothing to fear from Aqua-buddah Conway.

  38. Duh

    30 it doesn’t sound like it’s worth $1 with them either.

  39. Steve

    Bend over taxpayers, only this time it’s a bird beak about to be broken off in you.
    Jurich, Pitino, and Ramsey should all go to jail over this deal and their collective negative stand against bringing a NBA team to Louisville.

  40. Lets Go Peay

    GET THE NBA IN TOWN!!!! I’ll buy a T-shirt, I promise.

  41. Invisible Obama

    23 & 27 – With AEG’s newly projected annual profits of just over 1 million dollars they are confident they’ll have that sucker paid off in a cool 800 years.

  42. Bill Says

    Somebody is going to have to pay the day to day operational cost if the building is open for business. In reading the above that appears to me to be the problem.

  43. bluecreeker

    Response to GetReal: Operating at a profit does not pay for a $350M facility.

    This whole deal was sold based on smoke and mirrors, and somebody is going down hard if this thing defaults.

    Right now the YUM does not make enough money to pay the interest on the bonds (period).

    Who do you suspect will be paying for this albatross?

    Looks to me like Jurich (POS) knew what he was doing….and the taxpayers will have bought and paid for UofL’s new Basketball Facility…which will be named after Tom Jurich one would assume.

  44. bluecreeker

    Response to TaxMeNot: The YUM debacle fades in comparison to the MSD debacle.

    Louisville itself has been called out as a city that could soon become insolvent.

    Thank you Mayor for life Jerry and all the idiots who voted the sissy boy in for years.

  45. ICBMcat

    25 – that cost per day figure includes debt.

    IF they default all it means is the debtholders (the poor bastards who loaned the money — likely pension funds, bond funds and some mom and pops who are probably not poor) will lose a portion of their capital and likely see reduced interest payments on what’s left of their original investment.

    For U of L their agreement would be subject to a judge who could redo the contract…however that judge will be a Jefferson Co. judge.

  46. UKBlue1!

    #37. Agreed. Hopefully, enough info will come out and a federal investigation can be done. The Mayor for life, knew this was going to happen that’s why he is sitting in the Lt. Gov chair now. If he runs for Gov hopefully the people will have enough sense to vote against. This was done in a complete fraud and the notion it would revitalize downtown. I know a lot of people who go to the games but don’t stay to spend money. There is not enough tax revenue coming from the 6 mi radius to support anything. I purposely will not spend money in this area.

  47. bluecreeker

    Response to Lawyer: I disagree with your logic regarding UofL being the only tenant to support this facility. UofL only books out 40 nights (on average) per year. According to my math…that leaves 325 days for which the Board has to cover.

    One would assume $92K is an average…….right?

    The TIF financing is what smells like $h!t here. Somebody has some splaining to do. One would assume that the tried and true Don Adams excuse of (Missed it by that much) just aint gonna fly.

    Looks to me like UofL and Jurich saw this for what it was (a mess) and took advantage with a lease that not only bends the YUM over for 80% of its revenues……but gives them the keys to the castle as well once the failure is complete.

    Me thinks a whole lot of this would not turn out the way UofL wants if bankruptcy (reorganization) does in fact happen.

  48. Smitty

    Excellent move by U of L and all involved….. Build an arena and negotiate, with yourself, a crappy deal. Then, when the arena goes bankrupt, you are the first in line to buy it for a bargain….. Smoooooth

  49. Al's IndiCats

    Two things, one: Can you imagine Jurich and his minions walking out of those negotiations trying not to do summersaults, and laughing their collective asses off with this sweetheart of a deal? Two: In just a mere 6 years ago it was announced that the RCA Dome in Indy was paid in full, but instead of taking that penny per $1.00 out of your resturant bill they decided to keep it, PLUS add another cent on Marion and the surrounding counties to pay off Lucus Oil Field. But of course in the Capital Improvement Board gave their blessings that instead of giving those fine folks who Sat in those seats every Sunday, they could purchase them for a cool $200.00 apiece. They thought at first $500.00 but they didn’t want to seem greedy! And by the way soon after those auctions the officers of the C.I.B. was awarded several bonuses for their diligence for keeping integrity to this fine City….Kentucky tax payers, I’m afraid you’ll be stuck paying the bills for the Bucket.

  50. Matt3480

    Several problems here…

    #1 Event scheduling – get the national concerts here, we get some, but not nearly what’s out there and give the higher revenue events scheduling priority. Don’t put off a Rolling Stones concert so the volleyball team can play

    #2 part of the lack of downtown development is that there are too many local UL events there – have to bring regional people in for these events who still spend the money

    #3 Needs to be better run operationally and I think they addressed that. Most arenas have a +90% utilization rate, I’m not sure but thought that the arena was only used 40% of the time in 2012

    #4 and yeah if anyone lives in Jeff county, be ready for the tax hike

    It’s not that UL got the lease they did, like some mentioned above, it’s the issue that they basically negotiated against themselves

  51. j3k

    Wow, the university is killing the city. An NBA team would have been such a big boost to the Louiville economy and UL wouldn’t let it happen.

    It’s a shame, I would love to be attending some NBA action in Kentucky (more NBA action than the future NBA stars the Cats have every year)

  52. blueaville

    #48 you are right. UL made a great move here. They didn’t even want to go downtown in the 1st place. There preference was to build their own, smaller on campus arena with 19k-20,000 seats. So since the city pressured them to go downtown they made sure they got a great deal. If the deal goes south they can purchase the arena or build their own. If the NBA comes to town they’ll bail on Yum Ctr and build their own. They have tons of cash and could finance their own arena very easily.

    People need to be outraged at the city and state…not UL as much as we would all like to.

  53. HAHAHAto the Bank

    Good the rest of the state can help pay for something in Louisville for once instead of us feeding the rest of the state.

  54. Spot a homer when I see one

    Lawyer – your post is testament to exactly why we have a problem. You sound like you know what your talking about, but you have ZERO facts to back up your statements. UofL has done a masterful job selling the Kool-aid to the public and particularly the thirsty UofL fans. There was nothing near an ‘arms length transaction’ here and just because they had lawyers present doesn’t make it any more legit.

    Your anti-NBA talking points are equally Kool-aid driven. If an outside party is willing to pay for an NBA team to come to Louisville, and they book the arena for 40 nights and sell tickets, please explain how that will be a loser for the community and the arena? If the City bought the team, or the taxpayers paid for a $300M stadium to attract the NBA then there would be huge risk. There is almost no risk in this case – the arena is here regardless and no one is asking the City or State to cough up $400M to bring a team here. Just more UofL propaganda, and you are probably too drunk to realize your foolishness and continue to be a conduit for lies and distortions.

  55. tbt

    What are the exec’s at KFC currently thinking with their name associated with an albatross?
    Will they dig in and help bail out?

  56. Lawyer

    54- What company is going to bring a team to town? The Maloofs? They chose Seattle for a reason and it would not have been Louisville regardless of the current lease situation. There has to be corporate sponsorship to make it work and that does not appear to be there. Furthermore, it does not help that there is a NBA team just an hour and a half away in Indy.

    It’s just like the conference situation, you really are not capturing a new market in Louisville. Say what you want about the possibility of a NBA team coming to Louisville, but the NBA needs less teams, not more teams to make itself financially stable.

    Saying that, what team is going to pack up from the city they are in now and move?

  57. Lawyer

    As for the report itself, it seems to lack credibility its attack from the beginning. Stating facts is one thing; attacking and destroying is another.

    What feasability study does that? I’ve seen thousands of them for businesses and they certainly don’t use name-calling to prove their point. It just seems out of place.

    Nonetheless, I think we will all see what happens with the arena sooner than later. For everyone involved,I hope it works. It would be sad to see it fall into bankruptcy for the entire state.

    On a side note, the bonds are heavily insured so they will be paid one way or another.

  58. bluecreeker

    #54 – Lawyer, I believe is a UofL fan who posts on the despicable “red and blue” fans forum as CardinalConnie. Either that, or she copy/pasted this post verbatim on that jewel of a site. She isn’t a bad person, but she absolutely does not deal with facts in a common sensical fashion.

    Oh yea….she hates UK, and she hates UK fans (period). Just peruse some of her posting here with the rest of the retards that were left over from the CJ forum.

    http://rednbluefans.com/forum/topics/matt-jones-panties-are-in-a-wad-over-the-yum-again

  59. Rixter

    I’m no financial wizard, but I bet an NBA game on a Wednesday night would generate more money than a women’s volleyball game.

  60. Spot a homer when I see onehen

    And if you are going to cite biased reports, how about the recent report by UofL boosters that claimed the NBA wouldn’t be feasible? Even the Mayor had to call that one a joke. Put the Kool-aid down for a bit and try to be remotely objective.

  61. Spot a homer when I see onehen

    And report or no report, a third grade math student can tell the arena is in dire straights financially. The mayor knows it will be his doom if he wants a future term – hence the promotion of new tax legislation.

  62. SMH

    Let me get this straight: if the arena goes into default, U of L gets to steal it? Well no wonder they open the doors every time there’s an intramural basketball game. U of L WANTS it in default! I wonder how much $$ Harold Workman was passed under the table to make this deal??

  63. Spot a homer when I see one

    Why was that post removed? It didn’t have any language or anything offensive – are the mods UofL homers too?

  64. BLUIEVILLE

    BLUECREEKER,Sir
    Please post on red n BLUE fans a great Big Blue Blessed day and HELLO to BLUSU for me. Thank you! I love your post on redn BLUE, but don’t forget to shower after visiting there!

  65. Old Cat

    Who says this is an arena? It actually holds the title of the worlds largest Sports Bar. Something that we can be so proud of that no tax is too high to hold this title.

  66. Marshall Harrison's roach clip

    33) Better vote Republican if your serious about an investigation. Conway is one of Abramson’s circle jerk buddies.

  67. Jarvis Redwine

    66). There’s not a dime’s worth of difference between a mainstream republican or a mainstream democrat. Both are equally susceptible to this sort of corruption and financial boondoggle. Time to take the blinders off.

  68. World Banks

    Substitute YUM! Center with the globe

  69. LOGIC OVER JEALOUSY

    Scenario #1= The Yum! turns a profit and the University of Louisville makes money and the city makes money.
    Scenario #2= The Yum! center fails and UofL has to pay back bonds, but gets an arena and the city makes money.

    What’s the problem other than Frankenberg is a jerk and UK fans not only hate UofL but the city as well?????

  70. bluecreeker

    #64 – Blueieville, consider it done. I chat with ‘ol Su on a regular basis over in the kidde pool. Have you ever seen such a collection of ignorance as can be found on Red N Blue?

    Truly amazes and entertains me. I can’t believe more UK guys don’t join in the beat down.

  71. EC

    Maybe we should convert the Chicken Coop into a state prison for ex-Card athletes. At least it could have some functional use. Hell we’d fill it up quick unlike their fan base.

  72. fb>bb

    69-
    #1) Not going to happen
    #2) UofL doesn’t have to pay back the bonds. UK fans (ie taxpayers)have to. UL fans don’t pay taxes because they don’t have jobs.

  73. sm

    abrason was the problem.they wanted to build at fairgrounds but he wanted it downtown.would have been alot cheaper to build at fairgrounds cause they already owned the land.but no had to build downtown so now ther having problems and the head of the fairgrounds has been forced to retire because of it.they actuaaly run it all but it had no chance of working because of a jackass politician.

  74. LOGIC OVER JEALOUSY

    @#72 Do you read moron? Bottom of page 25 of the report by “FickleBird” say the University pays back the outstanding bonds…DUH!!!! Read left to right, top to bottom:

    Tenant to have a period of 90 days after the date on which the Mortgagee acquires title to the Arena to give notice to theMortgagee that it will purchase the Arena at the price that is sufficient to retire or provide for the retirement all of the then OUTSTANDING ARENA BONDS.

  75. UKBlue

    Everyone on the Arena Authority board even the ones that left or has any connection to UL/AA board should be indicted for securities fraud, conspiracy to defraud taxpayers/government, and more importantly charged with a RICO. People seriously need to get jail time over this fraud.

    UL did this intentionally with the total intent of the Yum Center failing in order to buy it in foreclosure or bankruptcy since the contract states they have first right of refusal. The taxpayers pick up the bill for the first couple of years, the debt defaults, and UL sweeps in & buys the Yum Center at a discount.

  76. UH DUH

    #75 There was no fraud. The university wanted it in a location that was cheaper, the City wanted it downtown to boost the ecomomy, and they reached a compromise. The compromise was the City got an arena downtown and UofL got a good deal. That’s it, there is no magic bullet, there is no conspiracy! IF you go to the Yum Center website there are tons of events going on at the YUM besides BBALL,they have hired a company that manages other arenas and they’re trying to make a profit.

  77. 13 year old uk fan

    should i buy the nike platinum warm up jacket from last year, even though the championship years on the back are now outdated? Or should i just buy the regular white uk warm up jacket?

  78. RST

    76 Duh You are truly clueless and obviously no knowing about finance, securities, or the law. There was so much fraud by the Arena Authority, fraud doesn’t even describe this. UL is so full of $hit; keep believing that dream, UL wanted an arena & didn’t care where it was at. There will be a lot of heads that will roll at UL & within the government once this thing defaults. Once the bond holders take it back over, they will tell UL they can play at the Yum Center, but they will receive no money out of the Yum Center until the debt is paid off.

  79. UH DUH

    78 I’m not good with the law…what law was broken…I’ll wait… I’m sure the Government will swoop in anytime now…I’ll wait… Once the bond holders take over…how does that happen, I’m not good with finances… I’ll wait….MORON!

    Just to show you I’m not a bad guy, I’ll play you’re game. Let’s pretend UofL is trying to make the Arena not profitable by scheduling games when they want, which they have a right to do, but will bankrupt the arena so they can buy it. You know what you don’t wanna do? Let a bunch of Cards fans now that is the game plan, b/c they might not come to the other non-bball events thereby making default happen faster…. So maybe you should go back to the trailer and STFU!!!!!!!!!

  80. Gary

    The possibilities of what is going to happen are this:
    1)The lease with UofL gets renegotiated.
    2)They file Chapter 11 and the lease with UofL gets renegotiated during the restructuring.
    3)The file Chapter 7 and UofL buys the arena assuming all the debt.

  81. You Just Don't Get It

    @80:

    1. UofL says “NO”, we have a contract that needs to play out.
    2. If the Arena goes to foreclosure or ANY OTHER MEANS the renegotiation is that we buy the Arena.
    3. Yes, we buy the arena and pay back the bonds, no one get hurt, everyone is happy exept the City of Louisville haters.

  82. UKBlue

    Duh you really are clueless & Duh. 1st Law would be securities law since they obviously lied to the bondholders to secure the bond. 2nd Law would be conspiracy to defraud the bondholders & the taxpayers/government since the lease was negotiated in a way obviously with intent so the debt would default. Both of these combined fall under the RICO act.

    How do the bondholder take over, you really are clueless. The bondholders own the Yum Center until they are paid back, and are the first ones in the line of creditors to be paid back should the Arena Authority default on the debt. Let the debt default, and watch the bondholders sue the Arena Authority & UL, and then watch what happens.

    The entire intent would be to bankrupt the Yum Center so UL could buy it, UL could careless if you show up to other events if it means they get a chance to buy the Yum Center in bankruptcy. The funny thing is UL is stupid enough to honestly think they will end up owning the Yum Center.

    Yea I’m the moron; Stupid people are always the last to figure out they’re the stupid one, you are the classic example. Don’t be pissed at me because you’re stupid & don’t under stand. Duh seriously, don’t have kids, the world already has enough stupid people in it. You might want to learn the saying: It’s better to keep your mouth shut & be thought of as an idiot then to open your mouth & remove all doubt. Now go back to your idiot bubble & make sure you take your meds.

  83. Gary

    @81
    I wouldn’t be so quick to claim UofL will say no to a renegotiated lease. Even though saying no is the best option for them (because they win with the current lease or bankruptcy) they don’t want the negative publicity that goes with it.

    As for #2, Chapter 11 is a means of restructuring and would not include the foreclosure of the arena. That would happen in case #3, Chapter 7 bankruptcy.

  84. Dr. Funke

    25-I would say that the majority of the opperating cost is based on the annual depreciation of the arena. The yum center cost $238 million to build and probably loses 5-10% of its value each year.

  85. UKBlue

    UL is honestly dumb enough to think they are in a position to negotiate. UL either renegotiates a new lease or the debt defaults & the bond holders take over the YUM Center & UL ends up getting nothing until the bondholders are paid back. Bye Bye sweet heart deal !! UL can say whatever, they either except a new deal and keep playing in the Yum Center or go back to Freedom Hall; either way, UL isn’t in a position to negotiate. The politicians currently looking for political cover or people on the Arena Authority Board should be more than scared right now, and have their legal counsel on speed dial.

  86. UKBlue

    83 There is no way in the world a federal bankruptcy judge will allow this first right of refusal to buy the Yum Center in bankruptcy to hold up.

  87. Bluieville

    BLUECREEKER, Thanks friend. I joined the rednBLUE site today! So, I’ll be able to talk w/ SU and you too, hopefully.
    Yeah, you could make an X Files season about that collection of racist misfits, who have one thing in common. (Their hatred for all things BLUE). That character “TruthBtold, MR.Big & Hunter” keeps getting kicked off and comes back under other identitys. A friend once told me “Most of these vocal UK haters don’t even live in duh ville.” I know that guy lives in Western KY. I think CConnie lives in Ohio. (That what she claims, anyway.) Southern Indiana is home to KittyK. Yankee lived most of his life in New York, I believe. It’s a collection of UL out of town haters.
    I live in duhville. It’s hard enough to get along w/ the ones that live here, w/o having these transplant haters ruining the blog for EVERYONE.

  88. Bluieville

    #77 W/out a doubt, the Championship jacket. Good luck.

  89. UH DUH

    @82 Your still a moron. The big thing you are missing is PROOF! Their is NO proof that anyone lied or that there was an attempt to defraud the bondholders. In order to PROVE something like that you would have to have evidence: email, taped phone call or something that shows UofL said to the Arena Authority something like: “Hey, make a really bad deal that will fail and put a clause in so we can buy the place”.

    Too bad for your stupid theory it is on record that the two side fought on the location with UofL wanting a cheaper site and when UofL compromised they said that is fine, but we want priority to schedule games and if you fail to turn a profit downtown, we should get first rights to buy it. There is NOTHING wrong with doing that, NOTHING unless you have proof of some other way that it ACTUALLY went down, then STFU!!!

    ONCE AGAIN moron, the bondholders own their bonds and the arena UNTIL they get paid…..if the arena defaults the bondholders UOFL cant pay them and can then buy the Arena first. UofL is LOADED they will not have a problem doing that.

    @83 yes I’m sure UofL will not choose the best option for them…c’mon!! What are you going to go public with, the fact that UofL got a really good legal deal?????????????? That Jurich is the man!!! DO IT!!!

    @85 Did you not read the BLEEPING contract, the bondholders don’t take over!!!! Uofl gets to buy the arena and pay back the bondholders what they are owed if the thing defaults, bankrupts, whatever. It is over, UofL is either going to milk this CASH COW or buy their own arena.

  90. tyrus

    With years of experience in economic development, I go back to when Jim Host was saying it will make money. Host was chairman of the committee to construct the Yum Centre. Time after time he was quoted saying the facility will pay for itself, will make money and employee hundreds of employees (there’s part of your operational costs, salaries). He gets paid and gets many perks to say all this stuff and then walks away with a fat wallet. He’s on the hook for nothing. This is the exact same thing he did for the Horse Park prior to the World Equestrian Games. That pavilion and other construction projects that occurred will never ever break even. I’m tired of Jim Host acting like he’s some know-it-all when it comes to entertainment projects. BTW, he’s a crusty old turd with an attitude of I’m better than you.

  91. Laughing

    Here are the options in with the best options first:

    1. STFU!
    2. Support all the non-bball sports at the Yum so it can turn a profit and UofL can’t buy the Arena. Of course then UofL will make money off your money so we will de facto “pimp you out”.
    3. Make a big deal out of the fact UofL got a great deal. Then UofL fans in the city may think “gosh if I don’t support events at the arena, it won’t make money and UofL will own the YUM”! Then guess what? We will get a NBA team and we won’t call it the “Kentucky Colonels”, we’ll call it the “Louisville Kings” b/c we run this state.
    4. Seek legal actions, spend tax dollars to fight this thing or make the arena authority use tax money to defend themselves. You’ll say taxes were misused, but you’ll be wasting tax dollars to have the case, which will make you look like complete a****. Plus, you will lose, TJ plays chess not checkers.

    Ball is really in your court cayuts!

  92. LMAO

    @91 Holy crap! Owned! Haha! Don’t be mad cats!

  93. UKBlue

    UH Duh Also don’t be surprised once the debt blows up politicians aka the governor tells Ramsey & Jurich to renegotiate or lose their jobs since ever KY college president serves at the pleasure of the governor. It also doesn’t help that Beashear son now sits on the Arena Authority Board.

    Uh Huh you’re so far beyond, you actually think you’re in the lead.

  94. Jarvis Redwine

    These Louisville apologists sound like the mafia. They got a sweetheart deal using good ole boy politics and back room dealing and they’re acting like we should be happy getting stuck with the bill. Laughable.

  95. bluecreeker

    #87 – Yes these are some paint eating, farm animal loving idiots over there……but they are soooooooo dumb it’s fun just to pi$$ them off and watch them twist in the wind. Hunter is a goof…..but Yank is the dumbest of the group IMO. I could use the help my friend. I live in the Creek as my moniker would imply, since about 1963……so I know about these UofL fans.

  96. UKBlue

    Uh Duh Since the the majority of the Arena Authority Members are either UL Board Members, UL Boosters, or related to a UL Board Member proof won’t be hard to prove. UL was negotiating with themselves. Since one of the Arena Authority Board Members also sits on UL Board, is a UL Booster, is the attorney representing the Arena Authority, his firm has a Yum Center suite, it won’t be hard to prove.

    Since UL lease will be voided once it hits bankruptcy court, UL lease & what is says is irrelevant. Bondholders are always the first inline to get paid & will be the first to take over the Yum Center no matter what UL contract states.

    Keep thinking UL has all this money. UL will have a major problem politically & financially trying to buy the Yum Center. If you really believe UL has the money, I have some gold mines & oil leases to sell you on UL campus.

    Uh Duh, you are seriously the perfect UL fan; you actually believe all the propaganda that UL puts out & they play on your naiveness & stupidity, and you have no idea what you’re talking about.

  97. UH DUH

    93-A president can only be removed for incompetence, neglect, refusal to perform his duties or immoral conduct.

    None of that falls under the University making a great legal business deal with the Arena Authority. Anyone tries to remove the President and there will be a HUGE lawsuit.

  98. Lawyer

    I’m actually a UK undergrad and law alum. Not Connie whoever that is. I do follow local and state politics closely though.

  99. Lawyer

    Also, you never know what would happen in a bankruptcy court. There are three judges with three different backgrounds that could give three different opinions.

    Either way, the state has bigger problems than the Yum Center right now. Period.

  100. 6xJimmy

    Both the governor, and the Lt. governor said that the YUM center was a good deal for the state. They should be asked about this. Louisville councilmen Jim King also stated that with his banking experence(?) that this was a good deal for the city. He should have to answer about this also. When you can not pay anything off of the princple of the loan, that is crazy.
    Just wait, the same people are going to build bridges, and put tolls on them to increase business in the area?

  101. UH DUH

    96- It’s game over. Yes, the Arena Authority is made up of people from the Community of Louisville and many of them have ties to the University, this is understandable. The BURDEN OF PROOF will be on the person who TRIES to prove that the University collaborated with mal intent. Again, you will need to show some proof. People can be mad and make accusations all they want it is more likely to me that Frankenberger is made he wasn’t included in plans made for the arena just like the whole bridge article that was posted earlier.

    There will be no bankruptcy…if the mortgage can’t be paid, then UofL can purchase the arena and pay the bond holders. If the contract will be voided why is anyone worried? Doesn’t make any sense.

    Keep thinking UofL doesn’t have money. Keep trying to figure out how we are building all these facilities and you’re still stuck in building from the 1970s that are falling apart. Get a clue BarnFart sucks!

  102. UK Freshmen

    The level of ignorance demonstrated in this post is amazing.

  103. UH DUh

    @UK Freshmen: There is nothing wrong with being ignorant, that just means you don’t know something. There is something wrong with being dumb, cause that means you know better, but you’re still making the mistake.

    Don’t be dumb UK fans, you can’t stop the University from getting the arena, they have held up their end of the bargain. You should be happy that your rival is now going to be more wealthy and in control of their program. Deuces!

  104. Dolfan66r

    As a Louisville resident I have been outraged since the deal was first struck with the city, arena board, and UL. UL basically blackmailed the city into oulling out of a potential deal to bring the Charlotte Hornets to Louisville. The Hornets went to New Orleans and suddenly UL was in favor of a downtown arena where they were the primary tenant. The lease deal should be investigated. UL takes any money that the TIF (Tax Increment Financing) district earns off of hotel and occupational taxes around the arena and gets to spend that money on capital projects as well. The NBA cannot come here unless UL renegotiates its lease arrangement. Jurich and Ramsey have been sticking it to the city long enough but the local media protects them.

  105. Eddie

    If youre a Louisville Resident, you should be cheering for the Cards anyway.. LOSER

  106. Bluieville

    105 Eddie,
    Most Louisville residents are UK fans. It’s always been that way.

  107. UH DUH

    104 Keep it simple Stoopid. Here are the facts:

    1. The University of Louisville fought not to have the arena downtown.
    2. The city insisted on a downtown arena.
    3. The University compromised on the location and the city had to compromise by making them the primary tenant.
    4. The University has not been shown to do anything wrong and there is no proof otherwise.
    5. The University will either milk this CASH COW for a long time and/or buy the arena eventually.

    See it is simple, even a moron can understand it.