October 9, 2025 • 10 mins
Louisville businessman Denis Frankenberger brings receipts to illustrate why the city is needlessly sending $10.8 million annually to help fund the KFC Yum Center.
On its 15th birthday, we are told that only 5.3% of the principle of the Yum Center has been paid. Frankenberger says that under the current lease agreement with the University of Louisville, taxpayers will ultimately cough up a BILLION DOLLARS to pay off the arena.
The original construction costs were estimated to be approximately $275 million, with various bonding strategies sending the cost north of $400 million.
In 2025, Frankenberger contends that the Louisville Arena Authority has multiple financial accounts that hold over $68 million so he questions why the city of Louisville must continue pumping nearly $11 million in annual subsidies while the arena is flush with cash.
On its 15th birthday, we are told that only 5.3% of the principle of the Yum Center has been paid. Frankenberger says that under the current lease agreement with the University of Louisville, taxpayers will ultimately cough up a BILLION DOLLARS to pay off the arena.
The original construction costs were estimated to be approximately $275 million, with various bonding strategies sending the cost north of $400 million.
In 2025, Frankenberger contends that the Louisville Arena Authority has multiple financial accounts that hold over $68 million so he questions why the city of Louisville must continue pumping nearly $11 million in annual subsidies while the arena is flush with cash.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
I heard there's new tax brackets coming out.
Speaker 2 (00:03):
For the changes are four tax returns filed in twenty
twenty seven. The standard deduction rises to sixteen thy one
hundred dollars for individuals, up from over fifteenth thous For
married couples who filed jointly, it is thirty two two
hundred dollars, up from thirty one to five. Someone who
earns the same income next year would likely, oh slightly
lessen taxes, so the difference may be a few hundred dollars.
(00:25):
Up to fifteen million dollars as exempt from estate taxes,
up from thirteen point ninety nine million.
Speaker 1 (00:31):
All right, well, thanks, that's some I think good news.
The guy makes it sound like it just might be
a few hundred dollars. Well, who's going to complain about that?
No one is the answer. In the studio with me coughing.
Right over there is Dennis Frankenberger. Hey, Dennis, going to
see you, doving terry local business guy. Thanks for popping
in here, sir. Tomorrow is the fifteenth anniversary of the
(00:51):
dedication of the KFC Young Center iron Flies, our fine
arena downtown. You and I have been electronically communicating throughout
the world week you wrote this to me. After fifteen
years and receiving more than three hundred and seventy million
in taxpayer subsidies, the YOUM Center has only paid five
(01:12):
point three percent of its original debt. Yes, fifteen years.
Speaker 3 (01:17):
Later, we still o the YM Center still o's ninety
five percent basically of their original debt.
Speaker 1 (01:25):
What do we say that was going to constantly build
this thing two hundred and forty something?
Speaker 3 (01:28):
Well, actually the starting depreciation is four hundred and three thousand,
forty three.
Speaker 1 (01:33):
Million, right, And then you go on to tell me,
by the year twenty fifty.
Speaker 3 (01:39):
If if the if the invatied lease is not altered,
which gives the University of Louisville Athletics Association eighty eight
percent of all up to eighty eight percent of all
the revenues and the current subsidies stay the same, that
they are taxpayers will have paid over a billion dollar
(02:01):
in subsidies to the arena.
Speaker 1 (02:02):
On a building we said would cost four hundred million.
That's correct, Couch, Okay? Are you a U of L hater?
Is that what's absolutely not? I'm a fan, Okay. I
just wanted to make sure let's clear the air on that.
But it is interesting because we've had this discussion over
the past several years. You've told me there's a looming
debt crisis for the KFC Youm Center, and then didn't
(02:23):
they restructure bonds and change the way it was?
Speaker 3 (02:26):
In twenty seventeen, the the Youm Center was on the
verge of bankruptcy and Frankfurt panicked. The governor panicked, and
he forced the city, he forced the university, and he
forced the state to increase their subsidies to the arena.
(02:46):
And up to then there had been far less subsidies.
So now, from twenty seventeen to current, the um sentor
gets around thirty million dollars a year in public subsidies
from the city, ten point eight million, about seventeen million
from the state, and about two point four from the
(03:09):
reimbursement from university.
Speaker 1 (03:11):
And then you're talking about every breathing creature who pays taxes,
even if they don't have any interest in sports or
concerts or anything else that happens.
Speaker 3 (03:20):
Up therey is of now, if you take the number
of households in the in metro Louisville, every household is
paid twelve hundred dollars to date in subsidies to the arena.
But the arena it's a shell game. In twenty seventeen,
with when the governor forced all these subsidies to increase,
(03:44):
three months later, the arena refinanced their debt and their payments.
Their debt payments reduced ten million. When your debt payments
reduced ten million and your your subsidies increased to thirty million,
you've got some really interesting cash flow advantages. Now the
(04:06):
arena holds over sixty eight million dollars worth of cash
in five different accounts. There's an excess subsidy account that
has thirty million dollars in it. It's why is that there?
Speaker 1 (04:21):
Why if we already taxpayers had a pony up thirty
million or all these millions you're talking about, why is
that sitting in an account.
Speaker 3 (04:28):
That's something that the mayor needs to recognize and address
the city. Why the city is continuing to pay ten
point eight million per year in subsidies when the arena
is flush with cash, I don't know.
Speaker 1 (04:44):
It's an interesting They have sixty eight million dollars, yet
they're asking we the people to pay ten points something.
Speaker 3 (04:50):
Ten point eight million a year.
Speaker 1 (04:52):
A year. Right, That makes no sense.
Speaker 3 (04:53):
It makes no sense at all.
Speaker 1 (04:55):
You wrote a book called Billion Dollar Basketball, Lifting the
veil on the biggest taxpayer scandal in Natro Louisville's history.
When'd you write this last year? Year before?
Speaker 2 (05:03):
No?
Speaker 3 (05:04):
In May?
Speaker 2 (05:04):
This?
Speaker 1 (05:04):
Yeay, so this year? So it's up the dates on
all this. Right, and by the way, you can go
to the website for a free digital copity billion dollar
Basketball dot com.
Speaker 3 (05:16):
Right.
Speaker 1 (05:17):
So, I mean we've gone over the tables of all this.
The arena says our operating revenues, the income is forty
one million twos. But that's not true. You showed me
another chart that said that's all nonsense. They're counting the
taxes that we're throwing in there.
Speaker 3 (05:33):
I don't see how in the world an accounting firm
can justify calling operating revenue the tax dollars, the tax
dollars that flow in those are gifts. The ten point
eight million, the seventeen million, the two. You can't consider
(05:54):
that as part of operating revenue. So when you when
you deduct the gifts from what they call an operating revenue,
the operating revenue is ten and their expenses are fourteen.
This past year, so they lost four million dollars.
Speaker 1 (06:07):
But every year they say they made money.
Speaker 3 (06:10):
Every year, every meeting, every other month they have a
meeting with the board of directors, and the management tells
of the directors they're making operating profit, which is a
falsification of fact. And in the private sector, if you've
got management that tells the directors in a private in
a public in a private or public company that they're
(06:31):
making money and they're not, that's a real problem legally.
Speaker 1 (06:37):
Yeah, because there was a twenty seventeen House bill proposed
by Ruth Palombo, signed by the governor at the time
that was Matt Bevan twenty seventeen. Yeah, yes, that that's about,
you know, stepping up and revealing your your true numbers. Yes,
and we don't have that so.
Speaker 3 (06:57):
Well, there was a there was an amendment to that
law that also required and directed the university or they
excuse me, the Louisville Arena Authority to actively search for
an NBA Basketball Association team to locate in Kentucky. I
have sent open records request to the Young Center asking
for it whatever activity they've had in that search. No response.
(07:23):
They've never actively searched, which is a violation of Kentucky law.
They should be actively searching for an NBA team. That
facility was built for an NBA team, But this invalid
lease that they're operating under gives the University Louisville exclusive
use of it during the basketball season.
Speaker 1 (07:43):
So to avoid paying a billion dollars, u of L
has got to restructure the deal. Is that what it is?
Speaker 3 (07:49):
The center, the Center has to restructure.
Speaker 1 (07:51):
The deal with the u of L. The agreement.
Speaker 3 (07:53):
That's right. Otherwise it's going to be the total debt
is going to be once again over a billion dollars
by twenty fifty that the taxpayers have put in.
Speaker 1 (08:04):
A lot of people who set it up say will
be dead by then. It doesn't matter.
Speaker 3 (08:07):
Well, well we'll let the next generation worry about That's
probably true. We'll I'll be dead, but somebody's going to
have to have to change it otherwise it's it's going
to be a scourge. And I feel sorry for the mayor.
If he does something about this, he'll lose votes. If
(08:27):
he doesn't do anything about this, he'll lose votes. So
as a result, he has just done nothing. So my
suggestion is you ought to get the mayor on the
show and ask him what he plans on doing with
this terrible situation where the city's putting in ten point
eight million per year needlessly. Obviously, the Young Center doesn't
(08:50):
need the money at all.
Speaker 1 (08:52):
Yeah, I'm a fan, obviously, I buy tickets. I love
the experience of going to u OFL games, so that's
tough for me as well. But the mayor, you're right,
is kind of on the seesaw of he's a UFL
fan and he's also the leader of the city, so
he's got a he's got to wear both of those
hats rights.
Speaker 3 (09:10):
It's actually a political landmine, but it has to be
addressed at some juncture because the city, just the city
can't afford to put in ten point eight million a year,
especially when it's not needed. That's what they're doing.
Speaker 1 (09:24):
We've got states giving money as well, and the state.
Speaker 3 (09:27):
The state's locked in to theirs because the tiff is
part of the bond issue, so they're they're at seventeen
million a year. Now, that's that tiff increases every year. Okay,
city is it specifically states in the bond issue that
the city's contribution of ten is not a general obligation
(09:50):
and has to be approved every year.
Speaker 1 (09:52):
It's variable and it depends on the circumstances. But if
they have sixty eight million in the bank, they don't
need the City of Louisville.
Speaker 3 (09:58):
We need to stop that and redirect that money, those
moneys to potholes, well potholes or policemen or whatever meany,
we are our homicide rates only three times the that
of Chicago on a on a per capita basis.
Speaker 1 (10:14):
All right, we'll have these chats, that's for sure. Anyway,
Happy birthday, young center. We just wanted to look at
your bank book. I hope that's Dennis. Great talking to you.
Thank you, Dennis Frankenberger. His book is called Billion Dollar Basketball,
and that's the website where you can actually get a
digital copy there, billion dollar basketball dot com. Thank you, Dennis,
appreciate you. Bet back in a few on news radio.
(10:36):
Wait forty whas
I heard there's new tax brackets coming out.
Speaker 2 (00:03):
For the changes are four tax returns filed in twenty
twenty seven. The standard deduction rises to sixteen thy one
hundred dollars for individuals, up from over fifteenth thous For
married couples who filed jointly, it is thirty two two
hundred dollars, up from thirty one to five. Someone who
earns the same income next year would likely, oh slightly
lessen taxes, so the difference may be a few hundred dollars.
(00:25):
Up to fifteen million dollars as exempt from estate taxes,
up from thirteen point ninety nine million.
Speaker 1 (00:31):
All right, well, thanks, that's some I think good news.
The guy makes it sound like it just might be
a few hundred dollars. Well, who's going to complain about that?
No one is the answer. In the studio with me coughing.
Right over there is Dennis Frankenberger. Hey, Dennis, going to
see you, doving terry local business guy. Thanks for popping
in here, sir. Tomorrow is the fifteenth anniversary of the
(00:51):
dedication of the KFC Young Center iron Flies, our fine
arena downtown. You and I have been electronically communicating throughout
the world week you wrote this to me. After fifteen
years and receiving more than three hundred and seventy million
in taxpayer subsidies, the YOUM Center has only paid five
(01:12):
point three percent of its original debt. Yes, fifteen years.
Speaker 3 (01:17):
Later, we still o the YM Center still o's ninety
five percent basically of their original debt.
Speaker 1 (01:25):
What do we say that was going to constantly build
this thing two hundred and forty something?
Speaker 3 (01:28):
Well, actually the starting depreciation is four hundred and three thousand,
forty three.
Speaker 1 (01:33):
Million, right, And then you go on to tell me,
by the year twenty fifty.
Speaker 3 (01:39):
If if the if the invatied lease is not altered,
which gives the University of Louisville Athletics Association eighty eight
percent of all up to eighty eight percent of all
the revenues and the current subsidies stay the same, that
they are taxpayers will have paid over a billion dollar
(02:01):
in subsidies to the arena.
Speaker 1 (02:02):
On a building we said would cost four hundred million.
That's correct, Couch, Okay? Are you a U of L hater?
Is that what's absolutely not? I'm a fan, Okay. I
just wanted to make sure let's clear the air on that.
But it is interesting because we've had this discussion over
the past several years. You've told me there's a looming
debt crisis for the KFC Youm Center, and then didn't
(02:23):
they restructure bonds and change the way it was?
Speaker 3 (02:26):
In twenty seventeen, the the Youm Center was on the
verge of bankruptcy and Frankfurt panicked. The governor panicked, and
he forced the city, he forced the university, and he
forced the state to increase their subsidies to the arena.
(02:46):
And up to then there had been far less subsidies.
So now, from twenty seventeen to current, the um sentor
gets around thirty million dollars a year in public subsidies
from the city, ten point eight million, about seventeen million
from the state, and about two point four from the
(03:09):
reimbursement from university.
Speaker 1 (03:11):
And then you're talking about every breathing creature who pays taxes,
even if they don't have any interest in sports or
concerts or anything else that happens.
Speaker 3 (03:20):
Up therey is of now, if you take the number
of households in the in metro Louisville, every household is
paid twelve hundred dollars to date in subsidies to the arena.
But the arena it's a shell game. In twenty seventeen,
with when the governor forced all these subsidies to increase,
(03:44):
three months later, the arena refinanced their debt and their payments.
Their debt payments reduced ten million. When your debt payments
reduced ten million and your your subsidies increased to thirty million,
you've got some really interesting cash flow advantages. Now the
(04:06):
arena holds over sixty eight million dollars worth of cash
in five different accounts. There's an excess subsidy account that
has thirty million dollars in it. It's why is that there?
Speaker 1 (04:21):
Why if we already taxpayers had a pony up thirty
million or all these millions you're talking about, why is
that sitting in an account.
Speaker 3 (04:28):
That's something that the mayor needs to recognize and address
the city. Why the city is continuing to pay ten
point eight million per year in subsidies when the arena
is flush with cash, I don't know.
Speaker 1 (04:44):
It's an interesting They have sixty eight million dollars, yet
they're asking we the people to pay ten points something.
Speaker 3 (04:50):
Ten point eight million a year.
Speaker 1 (04:52):
A year. Right, That makes no sense.
Speaker 3 (04:53):
It makes no sense at all.
Speaker 1 (04:55):
You wrote a book called Billion Dollar Basketball, Lifting the
veil on the biggest taxpayer scandal in Natro Louisville's history.
When'd you write this last year? Year before?
Speaker 2 (05:03):
No?
Speaker 3 (05:04):
In May?
Speaker 2 (05:04):
This?
Speaker 1 (05:04):
Yeay, so this year? So it's up the dates on
all this. Right, and by the way, you can go
to the website for a free digital copity billion dollar
Basketball dot com.
Speaker 3 (05:16):
Right.
Speaker 1 (05:17):
So, I mean we've gone over the tables of all this.
The arena says our operating revenues, the income is forty
one million twos. But that's not true. You showed me
another chart that said that's all nonsense. They're counting the
taxes that we're throwing in there.
Speaker 3 (05:33):
I don't see how in the world an accounting firm
can justify calling operating revenue the tax dollars, the tax
dollars that flow in those are gifts. The ten point
eight million, the seventeen million, the two. You can't consider
(05:54):
that as part of operating revenue. So when you when
you deduct the gifts from what they call an operating revenue,
the operating revenue is ten and their expenses are fourteen.
This past year, so they lost four million dollars.
Speaker 1 (06:07):
But every year they say they made money.
Speaker 3 (06:10):
Every year, every meeting, every other month they have a
meeting with the board of directors, and the management tells
of the directors they're making operating profit, which is a
falsification of fact. And in the private sector, if you've
got management that tells the directors in a private in
a public in a private or public company that they're
(06:31):
making money and they're not, that's a real problem legally.
Speaker 1 (06:37):
Yeah, because there was a twenty seventeen House bill proposed
by Ruth Palombo, signed by the governor at the time
that was Matt Bevan twenty seventeen. Yeah, yes, that that's about,
you know, stepping up and revealing your your true numbers. Yes,
and we don't have that so.
Speaker 3 (06:57):
Well, there was a there was an amendment to that
law that also required and directed the university or they
excuse me, the Louisville Arena Authority to actively search for
an NBA Basketball Association team to locate in Kentucky. I
have sent open records request to the Young Center asking
for it whatever activity they've had in that search. No response.
(07:23):
They've never actively searched, which is a violation of Kentucky law.
They should be actively searching for an NBA team. That
facility was built for an NBA team, But this invalid
lease that they're operating under gives the University Louisville exclusive
use of it during the basketball season.
Speaker 1 (07:43):
So to avoid paying a billion dollars, u of L
has got to restructure the deal. Is that what it is?
Speaker 3 (07:49):
The center, the Center has to restructure.
Speaker 1 (07:51):
The deal with the u of L. The agreement.
Speaker 3 (07:53):
That's right. Otherwise it's going to be the total debt
is going to be once again over a billion dollars
by twenty fifty that the taxpayers have put in.
Speaker 1 (08:04):
A lot of people who set it up say will
be dead by then. It doesn't matter.
Speaker 3 (08:07):
Well, well we'll let the next generation worry about That's
probably true. We'll I'll be dead, but somebody's going to
have to have to change it otherwise it's it's going
to be a scourge. And I feel sorry for the mayor.
If he does something about this, he'll lose votes. If
(08:27):
he doesn't do anything about this, he'll lose votes. So
as a result, he has just done nothing. So my
suggestion is you ought to get the mayor on the
show and ask him what he plans on doing with
this terrible situation where the city's putting in ten point
eight million per year needlessly. Obviously, the Young Center doesn't
(08:50):
need the money at all.
Speaker 1 (08:52):
Yeah, I'm a fan, obviously, I buy tickets. I love
the experience of going to u OFL games, so that's
tough for me as well. But the mayor, you're right,
is kind of on the seesaw of he's a UFL
fan and he's also the leader of the city, so
he's got a he's got to wear both of those
hats rights.
Speaker 3 (09:10):
It's actually a political landmine, but it has to be
addressed at some juncture because the city, just the city
can't afford to put in ten point eight million a year,
especially when it's not needed. That's what they're doing.
Speaker 1 (09:24):
We've got states giving money as well, and the state.
Speaker 3 (09:27):
The state's locked in to theirs because the tiff is
part of the bond issue, so they're they're at seventeen
million a year. Now, that's that tiff increases every year. Okay,
city is it specifically states in the bond issue that
the city's contribution of ten is not a general obligation
(09:50):
and has to be approved every year.
Speaker 1 (09:52):
It's variable and it depends on the circumstances. But if
they have sixty eight million in the bank, they don't
need the City of Louisville.
Speaker 3 (09:58):
We need to stop that and redirect that money, those
moneys to potholes, well potholes or policemen or whatever meany,
we are our homicide rates only three times the that
of Chicago on a on a per capita basis.
Speaker 1 (10:14):
All right, we'll have these chats, that's for sure. Anyway,
Happy birthday, young center. We just wanted to look at
your bank book. I hope that's Dennis. Great talking to you.
Thank you, Dennis Frankenberger. His book is called Billion Dollar Basketball,
and that's the website where you can actually get a
digital copy there, billion dollar basketball dot com. Thank you, Dennis,
appreciate you. Bet back in a few on news radio.
(10:36):
Wait forty whas
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