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.