The University of Louisville board of trustees approved a lease for the KFC Yum! Center and the Louisville Arena Authority on Thursday that will increase the amount of money the university will contribute to the arena authority according to the Courier-Journal.
Louisville will be expected to pay an additional $2.42 million each year. That’s on top of what the university was already contributing on a yearly basis, which the Courier-Journal estimates is between $1.3 and $1.8 million. Over the next 30 years, Louisville will pay $75 million more toward the KFC Yum! Center under the new agreement.
In the new deal, the arena authority will have an opportunity to schedule concerts and other revenue-producing shows during October because the university will relinquish control of all dates that month. In return, the arena authority will work with men’s basketball coach Rick Pitino on scheduling the Red-White scrimmages. The two sides also will reportedly renegotiate the parking situation.
This deal is part of an effort to increase revenue to pay off the $690 million construction debt accrued by the arena authority when the KFC Yum! Center was built in 2007. According to the Courier-Journal, tax-increment financing has fallen short of projections.