KFC Yum Center breaks records, climbs up national arena rankings

[Tech Card]

The Louisville Arena Authority, which oversees the finances and operations of the Yum Center, announced Monday that the Yum Center notched a record profit of nearly $1.2 million in February, powered by blockbuster concerts featuring country music artists Carrie Underwood and Blake Shelton and a huge show featuring rock icon Bruce Springsteen. Actor and comedian Martin Lawrence also held a show in February.

The arena authority, which held its bimonthly meeting today, does not disclose specific ticket sale numbers for individual concerts. But financial documents for February show gross operating revenue of $2.7 million and net revenue of $1.7 million after event expenses were removed.

The arena had about $508,000 in operating expenses for February.

Justin Jokovich, the arena's finance director, said the Yum Center has a net operating profit of $2.26 million for the fiscal year to date, and he projects it will finish the fiscal year, which ends June 30, with a $1.8 million profit.

That is about $300,000 above the $1.5 million annual guaranteed profit promised by AEG, which manages the Yum Center.

 

[nccardfan]

No comment from Mr. Bailout?

 

[Cue Card]

No comment from Mr. Bailout?

Not yet, but something tells me it's about to happen now.

 

[65bird]

The Louisville Arena Authority, which oversees the finances and operations of the Yum Center, announced Monday that the Yum Center notched a record profit of nearly $1.2 million in February, powered by blockbuster concerts featuring country music artists Carrie Underwood and Blake Shelton and a huge show featuring rock icon Bruce Springsteen. Actor and comedian Martin Lawrence also held a show in February.

The arena authority, which held its bimonthly meeting today, does not disclose specific ticket sale numbers for individual concerts. But financial documents for February show gross operating revenue of $2.7 million and net revenue of $1.7 million after event expenses were removed.

The arena had about $508,000 in operating expenses for February.

Justin Jokovich, the arena's finance director, said the Yum Center has a net operating profit of $2.26 million for the fiscal year to date, and he projects it will finish the fiscal year, which ends June 30, with a $1.8 million profit.

That is about $300,000 above the $1.5 million annual guaranteed profit promised by AEG, which manages the Yum Center.

Build it and they will come.

 

[zipp]

Simple question, because I've tried various approaches to make these points...

What's the importance of $300,000 for a $300 million facility? (Numbers rounded to make the math easy...) That's like operating a business on a $100,000 piece of real estate and proudly announcing "we found an extra $100!!"

With Bailout Arena, there are so many zeroes that the numbers all look big. Does anyone in this thread comprehend that?

Jim Host Light-A-Cigar Arena

 

[Cue Card]

Simple question, because I've tried various approaches to make these points...

What's the importance of $300,000 for a $300 million facility? (Numbers rounded to make the math easy...) That's like operating a business on a $100,000 piece of real estate and proudly announcing "we found an extra $100!!"

With Bailout Arena, there are so many zeroes that the numbers all look big. Does anyone in this thread comprehend that?

By the way, the looming annual debt service on the arena is, like, a hundred times that $300K.

Jim Host Light-A-Cigar Arena

Yeah but compared to the national debt of 20 trillion and counting up every second of every minute of every hour of every day......This is PEANUTS!! LOL

 

[zipp]

You're right. The country will probably go bankrupt before the arena does. The problem is some folks read that and consider it good news.

Jim Host Solid-As-The-US Arena

 

[zipp]

These threads are good for one thing... They keep me reading the old arena financial reports.

As much as I trivialized $300,000, get this... There's a footnote in last year's 2014 report. (2015 is due to issue shortly...)

Renovation Replacement Fund - This fund is used to hold deposits for potential future repairs, renovations, and replacements. At December 31, 2014 and 2013, the balance was $4,007 and $4,004, respectively.
​

I've been remarking how these guys are in cash burn mode and drawing down everything in savings. Here they acknowledge that the arena has in capital reserves about 0.001% of the original construction cost, again rounding to make the math easy. Presumably, Robbie or someone kicked in $3 in 2014 to boost that amount, maybe skipping lunch one day.

Any of you guys who work for a large company, see how much your bosses have set aside in some type of capital reserve account and how much your company adds to it each year. For your sake, I hope it's more than 0.001%.

Jim Host You-Can't-Make-This-Stuff-Up Arena

 

[65bird]

Come on Zipp, the CJ endorsed it

 

[Briggsky]

Come on Zipp, the CJ endorsed it

Zipp obviously doesn't understand a renovation and repair fund. The idea is to end the year at zero balance or close to it. Major renovations are always a far different budget item. Remember this is the man who was claiming 15 and 20 million annual shortfalls. The Yum is a national success story by any measurement. You can be sure that Zip will never admit he was wrong. Nobody ever thought we would bring in the amount of entertainment that we have especially so quickly. Even when we bring in more than many arenas that cost twice or three times the cost some are still not happy. Considering the size of Louisville, the dollars brought into our town are staggering. We dreamed big and performed even bigger.

 

[zipp]

Zipp obviously doesn't understand a renovation and repair fund. The idea is to end the year at zero balance or close to it. Major renovations are always a far different budget item. Remember this is the man who was claiming 15 and 20 million annual shortfalls. The Yum is a national success story by any measurement. You can be sure that Zip will never admit he was wrong. Nobody ever thought we would bring in the amount of entertainment that we have especially so quickly. Even when we bring in more than many arenas that cost twice or three times the cost some are still not happy. Considering the size of Louisville, the dollars brought into our town are staggering. We dreamed big and performed even bigger.

You need to study accounting... Even for a non-profit, setting up the balance sheet is not a question of whether the money is spent in a calendar year. It's whether the expenditure is large, non-recurring, depreciated, and adding to the fixed asset base (capital). Or whether it's annual/periodic and deducted in the year of the expenditure (expense). You don't make "renovations" and fully deduct them in the year of expenditure. I live in a non-profit operation, and we capitalize and expense just like a for-profit.

And any operation has to reserve capital funds because no building lasts forever. It's not as important when a building is new like Bailout Arena WAS seven years ago. Four thousand dollars won't buy a good residential central air conditioning system. This building needs those assets with zeroes on the end of them.

The only reason Bailout isn't already bankrupt is because they're burning through millions annually that were NOT collected by operating activities. That money runs out...you can only do that and live in denial for so long.

Jim Host Briggs Funny Accounting Arena

 

[zipp]

BTW, nccardfan won't be helping you with the accounting.

Jim Host Two Boobs Arena