What is the total cost of the Arena, and who is paying for it?
The total guaranteed maximum cost to build the Arena is $238 million. The project is funded by approximately $349 million in gross proceeds from bonds issued by the Louisville Arena Authority. According to the Leib Report (an independent review of the Louisville Arena Authority’s development and financing plan prepared in 2006 and updated in 2007 by The Leib Group, LLC), the Arena-generated revenues are projected to be $1,161,456,000 over 30 years, or the life of the debt service. Revenues include income from the University of Louisville’s lease of the Arena, as well as a percentage of sales of premium seating, luxury suites, junior suites and club seats; naming rights; advertising and sponsorships; facility rental; concession sales; facility fees; tax increment financing (“TIF”) Revenue; and Louisville Metro guaranteed revenue.
