We, the people, will pay over a BILLION DOLLARS for the KFC Yum Center. Denis Frankenberger says a few adjustments in the contract the Yum has with the University of Louisville could markedly reduce the costs so that taxpayer money could be directed elsewhere.
Denis Frankenberger, author of BILLION DOLLAR BASKETBALL, has the sobering details.
Denis Frankenberger, author of BILLION DOLLAR BASKETBALL, has the sobering details.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Well, it's a good day for Pat Kelsey. He's the
basketball coach of course for the University at Louisville. They
got a nice pay raise from two million, three hundred
thousand to three million, three hundred thousand. Okay, car stipend, Well,
that actually remained the same, and then there's some other
bonuses that go along with his postseason work. If they
(00:22):
make the Sweet sixteen, he gets this there and they
raised all those amounts. Coach of the year, Conference coach
of the year, he was twenty five hundred or twenty
five thousand, excuse me, and those rates remain to same. Anyway,
you can find the contract online. It's all interesting now.
The place where the University of Louisville Cardinals basketball team plays,
(00:43):
that's another entity because it's owned by we the people,
eploribus unhem from many one. That's our job is to
fund certain things that happen in our community. A man
named Dennis Frankenberger has called my attention to the cost
of the youngs, and he's been on with me multiple
times over the years. But I just read his book
(01:04):
Billion Dollar Basketball, so I wanted you to come back in.
Speaker 2 (01:07):
No, thank you, Terry. It's good to see you again.
Good see you.
Speaker 1 (01:10):
We have a great coach. We're excited about our University
of Louisville men's team. The women's team is Jeff Walls.
He had them moving nicely again this year. We all
love the team. I agree it's the house that they
call home that the finances are astounding, astounding, And you've
been called to examine this over the years. I know
(01:33):
that it's become a work of passion, Yes, a passion
work for you because it's astounding how all this has
played out. I remember when they were talking about the
arenas right where they would go and what the general
price tag was.
Speaker 2 (01:48):
Yeah. What what is absolutely astounding is the amount of
money the taxpayers have put in to date, three hundred
and forty million dollars. And if the least which I
call invalid because it is invalid, if it's not changed,
it's going to be a billion dollars about twenty forty
(02:08):
four that the taxpayers have put in. It's insane.
Speaker 1 (02:13):
You heard him correctly. Billion The name of his book
is billion dollar Basketball. How can an arena Dennis that
we were told was going to cost us four hundred
sixty something million, As I recall when it was on
the drawing board. How could it be more than double that?
Speaker 2 (02:34):
Well, the bonds financed it. And unfortunately, because the arena authority,
the arena itself loses an average since it opened, an
average up a million dollars a month.
Speaker 1 (02:49):
Wait a minute, twelve, So they're losing more than twelve
million dollars a month. But I hear reports all the
time that say we're making money.
Speaker 2 (02:58):
Right, Well, that's what the management tells the directors. They
meet every other month for a couple hours, and they're
told that they're making money. They're not. Maybe they consider
now we're talking net operating income and the arena authority.
(03:21):
Maybe they consider the public subsidies which now rank up
around twenty eight million dollars that state and city puts in.
Maybe they consider that operating net operating capital. Huh, that's wrong.
Speaker 1 (03:35):
That's taxpayer money.
Speaker 2 (03:36):
That's taxpayer money. As far as net operating capital, they've
never made a dime in any given year, and as
I say, an average of twelve million dollars a year.
Speaker 1 (03:48):
I remember the city agreeing to be the backstop, the
safety net in case the bills couldn't be paid up
to what ten and something a million of years. That's
what it is, ten point eight million. Why are we
paying that if they don't need it.
Speaker 2 (04:01):
Well, now, since twenty seventeen when the Arena Authority refinanced
their debt, their payments are now ten million dollars less
per year than they used to be. So now they
get this. Last year twenty twenty four, the state put
in seventeen point five million and Metro Louisal ten point
(04:23):
eight million. Now they're flush with cash. They get wheelbarrows
of money flowing in and out. The other end, it
goes into the University of Louisville coffers, athletic associations.
Speaker 1 (04:35):
So that's the problem was the deal it was originally
signed with the university.
Speaker 2 (04:39):
Absolutely and it's absolutely invalid. Even the General Council for
the Arena Authority back in the day, was on the
board of directors of the tenant that in its conflict. Oh,
it's a conflict of interest. And there were multiple numbers
of directors of and people close to the University of
Louisll that were on the the board at that time.
Speaker 1 (05:01):
I read your book and Todd Blue's name came up
because he stood up and said this doesn't work.
Speaker 2 (05:07):
He's a here. He left town though he left town,
but he was the only one on the directors that said, hey,
we're not doing this. We got to change this lease
because all the money's going to the university. But the
pirates to be behind the scenes, created this invalid lease
and it's it's still invalid. And it's all all Metro
(05:31):
Louisville needs to do is stop paying the ten point
eight million a year. The Arena Authority has an account
right now called an excess cash flow account. It's got
over thirty million dollars in it.
Speaker 1 (05:43):
Well, then why are they taking ten point eight from
the City of Louisville everything.
Speaker 2 (05:46):
I don't know. We need the money for other things.
We need the money for other things, for police protection,
for affordable housing, potholes, potholes, what what have you. But
it's it's proven to the Metro Council member with reports
that I've sent them and to the mayor that the
(06:07):
Arena Authority doesn't need ten point eight millionaire. The state
subsidy takes care of their debt service. What's their reply
from the city There isn't any crickets. Crickets that the
Metro Council didn't respond, and the mayor didn't respond, And
I hope that you have him on your show some
day soon and just ask him about this issue.
Speaker 1 (06:31):
Who the mayor. Yes, I know that there was a
report that came out this week that said these basketball
programs are the richest ones and we were listed of
the three or four. It's because of this deal. It's
absolutely because this deal. I think it's the richest basketball
program in America because all the revenues from the Youm
(06:53):
Center go to the university. Eighty eight percent of all
revenues go to the university. You're talking about like when
they sell sign Jimmy's Plumbing shop or whatever, and there's
a sign in there. The money should be used differently,
but most of it's going to u of L.
Speaker 2 (07:08):
Most of the signage, one hundred percent goes to the university.
Speaker 1 (07:11):
And then like when they pour a beer, they pour
a soda pop.
Speaker 2 (07:14):
One fifty concessions for all concessions, concerts, everything else. It's
all itemized in my book billion dollars.
Speaker 1 (07:23):
So if Taylor Swift is playing in there, those pouring
rights are going to u of L. Yes, half half not.
It's not a basketball game, it's not a basketball. It
doesn't have to be basketball for them to make eighty
eight percent of all the revenues, all NC Double A events,
all of them. So if there's an NC Double A
(07:44):
event there and Loyell's not playing, they still get eighty
eight percent of all volleyball, for instance, volleyball. Exactly. It's
the lease is so bad and so disproportionate, it has
to be changed. Well, the arena is not supposed to
be a profit center. But if they have an account
that has thirty million dollars in it and we the people,
(08:05):
keep shoveling money into it, that doesn't make any sense
when we can use that money elsewhere.
Speaker 2 (08:10):
That's exactly right, and that's what I've told the mayor
in the Metro Council that, like you say of crickets.
Speaker 1 (08:16):
Interesting it is what is the overall I know that
we've restructured the bonds because there was a long time
where we were all talking about, well, you know, we're
just paying the interest. Right now, once the principal comes due,
we're dead in the water. Where are we on that?
Speaker 2 (08:32):
As of last year, the principal is ninety six percent
of what it was when it was built. So that's
twenty years ago. We have to understand whendn't they refinanced
their debt in twenty seventeen. They added thirty one and
a half thirty one and a half million to the principle.
Speaker 1 (08:53):
We've only paid four percent before down? Is it? Is
it going to get on an accelerated track soon? Or
we started lopping off principal.
Speaker 2 (09:01):
The last eight years of the bond indebtedness. They backloaded
the payments fifty one and a half percent of all
the all the debts gonna be paid the last eight years.
Speaker 1 (09:15):
We'll all be dead then, That's what's what the thought
process was. What are we talking about, like the year
twenty fifty or something? We talking about moving on? Yeah,
twenty fifty four, I believe somewhere in there.
Speaker 2 (09:26):
Yeah. So, But the main thing, if I'll tell you this,
if the lease was altered to an even fifty to
fifty between the university and the arena, they wouldn't need
any public subsidies.
Speaker 1 (09:41):
Just back the university's chunk down.
Speaker 2 (09:44):
Yeah, make it fifty instead of eighty eight.
Speaker 1 (09:48):
Sounds very tony soprano. The big we're running a vague
on top the book is called billion Dollar Basketball. Yes,
it's about our KFC Young Center in Louisville and how
we the people, the taxpayers, are overpaying. We're putting too
much in the bank account over there.
Speaker 2 (10:04):
And the book is free in digital format. Is what
you just have to log on a Billion Dollar Basketball
and it's a download a copy.
Speaker 1 (10:12):
There's a free zero PDF copy you can get for
free Billion Dollar Basketball dot Com. I think it's said
eight bucks for the paperback if you want. That's right,
all right, Dennis Frankenberger, appreciate the Civics lesson.
Speaker 2 (10:26):
You're welcome.
Speaker 1 (10:27):
I'll think about how much we're paying with every pothole
I hit on the way home. Thanks brother, Yes sir,
Billion Dollar Basketball dot Com Back in a minute.
Well, it's a good day for Pat Kelsey. He's the
basketball coach of course for the University at Louisville. They
got a nice pay raise from two million, three hundred
thousand to three million, three hundred thousand. Okay, car stipend, Well,
that actually remained the same, and then there's some other
bonuses that go along with his postseason work. If they
(00:22):
make the Sweet sixteen, he gets this there and they
raised all those amounts. Coach of the year, Conference coach
of the year, he was twenty five hundred or twenty
five thousand, excuse me, and those rates remain to same. Anyway,
you can find the contract online. It's all interesting now.
The place where the University of Louisville Cardinals basketball team plays,
(00:43):
that's another entity because it's owned by we the people,
eploribus unhem from many one. That's our job is to
fund certain things that happen in our community. A man
named Dennis Frankenberger has called my attention to the cost
of the youngs, and he's been on with me multiple
times over the years. But I just read his book
(01:04):
Billion Dollar Basketball, so I wanted you to come back in.
Speaker 2 (01:07):
No, thank you, Terry. It's good to see you again.
Good see you.
Speaker 1 (01:10):
We have a great coach. We're excited about our University
of Louisville men's team. The women's team is Jeff Walls.
He had them moving nicely again this year. We all
love the team. I agree it's the house that they
call home that the finances are astounding, astounding, And you've
been called to examine this over the years. I know
(01:33):
that it's become a work of passion, Yes, a passion
work for you because it's astounding how all this has
played out. I remember when they were talking about the
arenas right where they would go and what the general
price tag was.
Speaker 2 (01:48):
Yeah. What what is absolutely astounding is the amount of
money the taxpayers have put in to date, three hundred
and forty million dollars. And if the least which I
call invalid because it is invalid, if it's not changed,
it's going to be a billion dollars about twenty forty
(02:08):
four that the taxpayers have put in. It's insane.
Speaker 1 (02:13):
You heard him correctly. Billion The name of his book
is billion dollar Basketball. How can an arena Dennis that
we were told was going to cost us four hundred
sixty something million, As I recall when it was on
the drawing board. How could it be more than double that?
Speaker 2 (02:34):
Well, the bonds financed it. And unfortunately, because the arena authority,
the arena itself loses an average since it opened, an
average up a million dollars a month.
Speaker 1 (02:49):
Wait a minute, twelve, So they're losing more than twelve
million dollars a month. But I hear reports all the
time that say we're making money.
Speaker 2 (02:58):
Right, Well, that's what the management tells the directors. They
meet every other month for a couple hours, and they're
told that they're making money. They're not. Maybe they consider
now we're talking net operating income and the arena authority.
(03:21):
Maybe they consider the public subsidies which now rank up
around twenty eight million dollars that state and city puts in.
Maybe they consider that operating net operating capital. Huh, that's wrong.
Speaker 1 (03:35):
That's taxpayer money.
Speaker 2 (03:36):
That's taxpayer money. As far as net operating capital, they've
never made a dime in any given year, and as
I say, an average of twelve million dollars a year.
Speaker 1 (03:48):
I remember the city agreeing to be the backstop, the
safety net in case the bills couldn't be paid up
to what ten and something a million of years. That's
what it is, ten point eight million. Why are we
paying that if they don't need it.
Speaker 2 (04:01):
Well, now, since twenty seventeen when the Arena Authority refinanced
their debt, their payments are now ten million dollars less
per year than they used to be. So now they
get this. Last year twenty twenty four, the state put
in seventeen point five million and Metro Louisal ten point
(04:23):
eight million. Now they're flush with cash. They get wheelbarrows
of money flowing in and out. The other end, it
goes into the University of Louisville coffers, athletic associations.
Speaker 1 (04:35):
So that's the problem was the deal it was originally
signed with the university.
Speaker 2 (04:39):
Absolutely and it's absolutely invalid. Even the General Council for
the Arena Authority back in the day, was on the
board of directors of the tenant that in its conflict. Oh,
it's a conflict of interest. And there were multiple numbers
of directors of and people close to the University of
Louisll that were on the the board at that time.
Speaker 1 (05:01):
I read your book and Todd Blue's name came up
because he stood up and said this doesn't work.
Speaker 2 (05:07):
He's a here. He left town though he left town,
but he was the only one on the directors that said, hey,
we're not doing this. We got to change this lease
because all the money's going to the university. But the
pirates to be behind the scenes, created this invalid lease
and it's it's still invalid. And it's all all Metro
(05:31):
Louisville needs to do is stop paying the ten point
eight million a year. The Arena Authority has an account
right now called an excess cash flow account. It's got
over thirty million dollars in it.
Speaker 1 (05:43):
Well, then why are they taking ten point eight from
the City of Louisville everything.
Speaker 2 (05:46):
I don't know. We need the money for other things.
We need the money for other things, for police protection,
for affordable housing, potholes, potholes, what what have you. But
it's it's proven to the Metro Council member with reports
that I've sent them and to the mayor that the
(06:07):
Arena Authority doesn't need ten point eight millionaire. The state
subsidy takes care of their debt service. What's their reply
from the city There isn't any crickets. Crickets that the
Metro Council didn't respond, and the mayor didn't respond, And
I hope that you have him on your show some
day soon and just ask him about this issue.
Speaker 1 (06:31):
Who the mayor. Yes, I know that there was a
report that came out this week that said these basketball
programs are the richest ones and we were listed of
the three or four. It's because of this deal. It's
absolutely because this deal. I think it's the richest basketball
program in America because all the revenues from the Youm
(06:53):
Center go to the university. Eighty eight percent of all
revenues go to the university. You're talking about like when
they sell sign Jimmy's Plumbing shop or whatever, and there's
a sign in there. The money should be used differently,
but most of it's going to u of L.
Speaker 2 (07:08):
Most of the signage, one hundred percent goes to the university.
Speaker 1 (07:11):
And then like when they pour a beer, they pour
a soda pop.
Speaker 2 (07:14):
One fifty concessions for all concessions, concerts, everything else. It's
all itemized in my book billion dollars.
Speaker 1 (07:23):
So if Taylor Swift is playing in there, those pouring
rights are going to u of L. Yes, half half not.
It's not a basketball game, it's not a basketball. It
doesn't have to be basketball for them to make eighty
eight percent of all the revenues, all NC Double A events,
all of them. So if there's an NC Double A
(07:44):
event there and Loyell's not playing, they still get eighty
eight percent of all volleyball, for instance, volleyball. Exactly. It's
the lease is so bad and so disproportionate, it has
to be changed. Well, the arena is not supposed to
be a profit center. But if they have an account
that has thirty million dollars in it and we the people,
(08:05):
keep shoveling money into it, that doesn't make any sense
when we can use that money elsewhere.
Speaker 2 (08:10):
That's exactly right, and that's what I've told the mayor
in the Metro Council that, like you say of crickets.
Speaker 1 (08:16):
Interesting it is what is the overall I know that
we've restructured the bonds because there was a long time
where we were all talking about, well, you know, we're
just paying the interest. Right now, once the principal comes due,
we're dead in the water. Where are we on that?
Speaker 2 (08:32):
As of last year, the principal is ninety six percent
of what it was when it was built. So that's
twenty years ago. We have to understand whendn't they refinanced
their debt in twenty seventeen. They added thirty one and
a half thirty one and a half million to the principle.
Speaker 1 (08:53):
We've only paid four percent before down? Is it? Is
it going to get on an accelerated track soon? Or
we started lopping off principal.
Speaker 2 (09:01):
The last eight years of the bond indebtedness. They backloaded
the payments fifty one and a half percent of all
the all the debts gonna be paid the last eight years.
Speaker 1 (09:15):
We'll all be dead then, That's what's what the thought
process was. What are we talking about, like the year
twenty fifty or something? We talking about moving on? Yeah,
twenty fifty four, I believe somewhere in there.
Speaker 2 (09:26):
Yeah. So, But the main thing, if I'll tell you this,
if the lease was altered to an even fifty to
fifty between the university and the arena, they wouldn't need
any public subsidies.
Speaker 1 (09:41):
Just back the university's chunk down.
Speaker 2 (09:44):
Yeah, make it fifty instead of eighty eight.
Speaker 1 (09:48):
Sounds very tony soprano. The big we're running a vague
on top the book is called billion Dollar Basketball. Yes,
it's about our KFC Young Center in Louisville and how
we the people, the taxpayers, are overpaying. We're putting too
much in the bank account over there.
Speaker 2 (10:04):
And the book is free in digital format. Is what
you just have to log on a Billion Dollar Basketball
and it's a download a copy.
Speaker 1 (10:12):
There's a free zero PDF copy you can get for
free Billion Dollar Basketball dot Com. I think it's said
eight bucks for the paperback if you want. That's right,
all right, Dennis Frankenberger, appreciate the Civics lesson.
Speaker 2 (10:26):
You're welcome.
Speaker 1 (10:27):
I'll think about how much we're paying with every pothole
I hit on the way home. Thanks brother, Yes sir,
Billion Dollar Basketball dot Com Back in a minute.
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