Louisville arena to turn a profit, thanks to more city money

Finally some good news about Louisville’s KFC Yum! Center, the college basketball arena that has been hemorrhaging money since TIF revenues started falling massively short three years ago: The chair of the Louisville Arena Authority now says that under a new operations manager, the arena should “show a pretty amazing operating profit this year” and may soon be able to move its bonds out of junk status.

That’s indeed great news, since it means that the beleaguered arena won’t be needing any more annual subsidies from the city to remain afloat, right?

After having to unexpectedly increase the city’s contribution to debt service in this fiscal year, Mayor Greg Fischer’s 2013-14 budget includes a $9.8 million contribution as TIF revenues are again expected to not meet original projections.

Oh. Well, never mind, then. But at least it’s nice that the arena can turn a profit when the city gives it $10 million to subsidize its operations, or something? Hey, I’m trying not to be negative here! Somebody help me out!


2 comments on “Louisville arena to turn a profit, thanks to more city money

  1. Reason enough for a new ad campaign by Goldman touting the arena’s success!

  2. I really like it when sports venue owners brag about their profits. when they are really talking about operating profits. They always omit depreciation, debt service, amortization, etc. Check out this typical story we get all the time in Northeast Ohio about how the local government funded arena is in the black, while in the meantime, Youngstown taxpayers are footing the financing bill.
    http://www.tribtoday.com/page/content.detail/id/584531/Covelli-turns-record-profit-in-2012.html