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Topic: UK signs long term lease for Rupp
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Bama Cat
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Member # 153
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posted 12-15-2016 12:46 PM
University of Kentucky men’s basketball will continue to play at Rupp Arena for 15 more years.
A new contract between Kentucky’s flagship university and Lexington Center Corp. — which oversees Rupp Arena — was announced Thursday morning at the Lexington Center board meeting. The agreement, outlined in a letter of intent signed by Lexington Center and UK officials, will ensure that the Kentucky Wildcats play at Rupp through 2033.
The university’s current lease with Rupp Arena terminates at the end of the 2017-18 basketball season. UK has played at Rupp Arena since the downtown Lexington arena opened in 1974.
As part of the agreement:
▪ UK has agreed to an annual base lease payment of $1.9 million to Lexington Center. That payment will increase by 2.4 percent each year.
▪ UK will pay Lexington Center $4.75 million each year for media rights.
▪ Lexington Center will receive 15 percent of merchandise sales and will be paid a not-yet-decided amount for parking.
▪ Lexington Center has agreed to add four club suites to Rupp Arena and to change roughly 10,584 upper level seats from benches to chair-back seats. The cost of those changes will not exceed $15 million.
UK also agreed to pay a one-time sum of roughly $1 million, about half of the more than $2 million that was given to Lexington Center for design work from a state coal severance fund. Lexington Center repaid the state coal severance fund last year.
Currently, UK’s annual lease payment to Lexington Center is a little less than $1 million. Under the new agreement, UK’s guaranteed payment to the center is more than $6.65 million in the first year.
UK will get the media rights and have additional club seats to sell, generating more revenue for UK Athletics, said Mitch Barnhart, UK Athletics director. Currently, Lexington Center has the media rights. It then pays UK a percentage of those media rights.
The media rights for Rupp have become more lucrative thanks to a technology upgrade that added more video screens. If UK sells more than $7.25 million in media rights, Lexington Center will receive 25 percent of the additional revenue.
Read more here: http://www.kentucky.com/news/local/counties/fayette-county/article121045233.html?utm_source=dlvr.it&utm_medium=twitter#storylink=cpy
Posts: 14461 | From: berea, ky, usa | Registered: Sep 1999
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CatFanInYankeeville
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Member # 2025
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posted 12-17-2016 10:36 AM
I'm no contract guru, but I fail to see how this benefits UK athletics. We'll earn more revenue, sure, but it's costing us an arm and a leg. I was kind of hoping UK would build an arena itself. Keep everything in-house, so to speak. Modern, larger than Rupp...all those things so many fans have been asking for.
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“Any man who thinks he can be happy and prosperous by letting the Government take care of him; better take a closer look at the American Indian!” Henry Ford
Posts: 5563 | From: Eddyville at heart, Chicago in life | Registered: Mar 2003
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Tiptree
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Member # 844
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posted 12-17-2016 01:19 PM
It would cost a lot more than $1.9 million per year to maintain an on-campus arena and pay down the debt incurred to build it. That isn't too bad of a deal, if you ask me.
I would LOVE an on-campus venue for basketball, but the economics are pretty dismal for those facilities. Short of an outright gift in the $30-50 million range, it just isn't going to happen.
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Tiptree
“If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and never will be.” Thomas Jefferson
Posts: 13746 | From: Terre Haute, IN | Registered: Sep 2000
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catmandoo
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Member # 1284
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posted 12-17-2016 10:43 PM
Tip, your probably are right but you never know what some old wealthy coal baron "might" be willing to donate to Kentucky basketball.
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Posts: 186366 | From: st. augustine florida 32092 | Registered: Mar 2001
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m hamilton
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Member # 127
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posted 12-18-2016 07:24 AM
A $30-50 million gift would only cover approx. 10% of the cost of a new arena. Especially one anywhere near the size of Rupp!
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The potus is planning 1st major tax hike since '93 in next economic package!
I still can't believe some people believed that LIAR!!!
Your whole life is determined(by) 10% what happens to you, and 90% how you handle it!!!
Posts: 130526 | From: vevay, IN USA | Registered: Sep 1999
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catmandoo
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Member # 1284
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posted 12-18-2016 12:08 PM
Rupp was built at a cost of 55 million which is very low to what a new arena would cost.
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Posts: 186366 | From: st. augustine florida 32092 | Registered: Mar 2001
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boomdaddy
Player
Member # 2644
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posted 12-18-2016 12:42 PM
I wonder what it would cost to dome Commonwealth?
Of course, it doesn't matter now, if they just signed a long term lease.
[ 12-18-2016, 01:24 PM: Message edited by: boomdaddy ]
Posts: 8791 | From: paris, ky | Registered: Mar 2006
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m hamilton
Player
Member # 127
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posted 12-18-2016 08:04 PM
I'm guessing it would still cost several hundred Million dollars to dome a stadium like Commonwealth!
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The potus is planning 1st major tax hike since '93 in next economic package!
I still can't believe some people believed that LIAR!!!
Your whole life is determined(by) 10% what happens to you, and 90% how you handle it!!!
Posts: 130526 | From: vevay, IN USA | Registered: Sep 1999
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catmandoo
Player
Member # 1284
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posted 12-19-2016 12:18 PM
It isn't going to happen.
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Posts: 186366 | From: st. augustine florida 32092 | Registered: Mar 2001
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m hamilton
Player
Member # 127
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posted 12-20-2016 10:20 AM
I agree, unless a multi billionaire like Trump comes in and says I'll donate a half billion if you'll build an arena and name it after me!
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The potus is planning 1st major tax hike since '93 in next economic package!
I still can't believe some people believed that LIAR!!!
Your whole life is determined(by) 10% what happens to you, and 90% how you handle it!!!
Posts: 130526 | From: vevay, IN USA | Registered: Sep 1999
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catmandoo
Player
Member # 1284
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posted 12-20-2016 11:18 AM
That would be great.
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http://www.ukfightsong.com/
Posts: 186366 | From: st. augustine florida 32092 | Registered: Mar 2001
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m hamilton
Player
Member # 127
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posted 12-20-2016 11:51 AM
Either a Horseman or a coal man are the only two that come to mind for possibility of money in our area!
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The potus is planning 1st major tax hike since '93 in next economic package!
I still can't believe some people believed that LIAR!!!
Your whole life is determined(by) 10% what happens to you, and 90% how you handle it!!!
Posts: 130526 | From: vevay, IN USA | Registered: Sep 1999
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Tiptree
Administrator
Member # 844
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posted 12-20-2016 02:13 PM
... or a deep-pocketed distillery.
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Tiptree
“If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and never will be.” Thomas Jefferson
Posts: 13746 | From: Terre Haute, IN | Registered: Sep 2000
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catmandoo
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Member # 1284
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posted 12-20-2016 03:22 PM
It's amazing where all the big bucks come from.
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Posts: 186366 | From: st. augustine florida 32092 | Registered: Mar 2001
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m hamilton
Player
Member # 127
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posted 12-20-2016 03:49 PM
All I know is where they DON'T come from!
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The potus is planning 1st major tax hike since '93 in next economic package!
I still can't believe some people believed that LIAR!!!
Your whole life is determined(by) 10% what happens to you, and 90% how you handle it!!!
Posts: 130526 | From: vevay, IN USA | Registered: Sep 1999
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