page_title: KFC Yum! Center
section_title: Financing
hierarchical_section_title: KFC Yum! Center / Financing
caption_attribution_description: This file has been extracted from another file: Louisville waterfront arena.jpg
context_page_description: The KFC Yum! Center is a multi-purpose sports arena in Downtown Louisville, Kentucky, United States. It is named after the KFC restaurant chain and Yum! Brands, the parent company of KFC. Adjacent to the Ohio River waterfront, it is located on Main Street between 2nd and 3rd Streets and opened on October 10, 2010. The arena is part of a $450 million project that includes a 975-car parking structure and floodwall.
  The Louisville Cardinals men's and women's basketball teams from the University of Louisville are the primary tenants of the arena complex. The U of L women's volleyball team began using the arena as a part-time home in 2011, and made the arena its main home in 2012. With 22,090 seats for basketball, it is the largest arena in the United States by seating capacity designed primarily for basketball, and the second-largest used for college basketball, behind the Carrier Dome at Syracuse University, a venue built to house football and lacrosse in addition to basketball. The arena's current attendance record for a sporting event is 22,815, set March 9, 2013 against Notre Dame.
context_section_description: As a result of the subtracted hotel and the revised projected revenues, the arena, which would have lost $123,000 a year originally, might turn a small profit. The arena would generate $9.2 million a year in rent, merchandise, concessions and other revenues, along with funds from a $2 ticket tax on every Louisville men's basketball game during the first 30 years of the arena's operation. The arena would spend just under $9 million a year, generating an annual profit of $196,000.
  Another reason for the revised operating expenses is the reimbursement fee that the Louisville Arena Authority must pay to the Kentucky State Fair Board for the arena's impact on Freedom Hall. The decrease in revenues, from $1.3 million to $738,000 during the first 10 years of operations of the new arena, is the result of a revision taking into account fewer events for the center.
  On May 28, 2007, it was announced that the Louisville Metro Council was to propose an arena-financing deal that would save city taxpayers $3.4 million/year, or $100 million over three decades. The proposal, required the arena officials to exhaust other revenue sources, such as naming rights and luxury suite sales, before asking the metro government to pay more than its minimum pledge. The minimum pledge was $206 million towards the construction of the arena in annual installments between 2010 and 2039. Under the deal, the Louisville Arena Authority can ask the local government for up to $3.5 million more a year to cover the debt only if at least five other sources are drained. If the Louisville Arena Authority would have to use additional city funds for two straight years, the Louisville Metro Council has the right to audit the arena's revenues.
  The financing agreement allowed $339 million in bonds through the state of Kentucky's Economic Development Finance Authority to be issued to construct the $252 million arena. The total debt on the bonds, $573 million over 30 years, will be paid through several sources. These include the city's $206 million commitment, $265 million from a tax-increment financing district, $179 million from advertising rights inside the arena, $63 million from luxury box sales, and at least $37 million in arena naming rights. The tax-increment financing district will allow part of the anticipated growth in state taxes to help pay for the arena. The arena's share of that revenue is capped at $265 million, although the project will be able to use the excess revenues to pay down the debt. It is expected to generate $574 million over 20 years.
  In September 2008, financing was completed for the new waterfront arena.
caption: The arena seen from the Ohio River, with Clark Memorial Bridge to the left.
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