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  1. #31
    Supporting Member xubrew's Avatar
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    Quote Originally Posted by Xville View Post
    Your original premise was that any school that hosts a tournament game is nuts. Though on an individual basis, it's not the most fun thing to do as you pointed out, louisville chooses to host for a multitude of positive reasons. I do know many people high up in the school administration as well as at the yum center on a business level and from a city/school partnership perspective it is seen as a financial boost.

    Now I can be wrong and maybe louisville and the city's relationship with the school is different than every other city in america but I'm going to assume that's not the case.
    I don't know. I guess "Nuts" was the first word that came to mind when I think of how far backwards people bend over to do all the NCAA's work for them, and basically turn themselves into a wait staff close to a week, and then watch as the NCAA basically takes all the money on their way out of town. Furthermore, I'm kind of amazed at how people are convinced that hosting games is some sort of privilege instead of a chore that you're doing for someone else while getting nothing in return. I need more people like that in my life!! If Louisville likes that arrangement, then good for them. A lot of schools do not like doing it, which is why they never do it.

    Now, to be fair, I am jesting a little bit here. There are reasons to do it. When Kentucky did it, I thought it had something to do with Mitch Barnhart wanting on (and getting on) the selection committee when it was the SEC's turn to have someone. I think UNCG and UNCA are routinely pressured into doing it by the UNC BOT for...well...obvious reasons. And, yeah, I'm sure there are some places out there that just like the idea of doing it. Some people like living where the party is even if it means buying all the booze, cleaning up all the mess, and paying for anything that gets broken. Others just like going to the party, and oftentimes don't even realize who actually lives in the house that's having it and then going home afterwards with no worries. I'm the latter. Especially now.
    "You can't fix stupid." Ron White

  2. #32
    Junior sirthought's Avatar
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    Using Louisville as an example of this working is misguided. Cincinnati taxpayers should definitely take caution when looking at the Yum Center.

    Debts for KFC 'Yum Center' stadium in Louisville swell to $1B

    The $238 million KFC Yum Center, which opened in 2010 and is home to University of Louisville basketball, as well as sold-out concerts and other events, was not the economic slam dunk it was supposed to be, even though it was completed on time and within budget. The city of Louisville, Kentucky, is on the hook for the venue's growing debt, increasing from $573 million in 2007 to $942 million by 2017, according to the Louisville Courier Journal. Combined with the state's initial contribution of $75 million, that brings the total cost to $1 billion. The city is expected to pay $300 million toward the arena during the next 30 years.
    Decisions and events that left the city and taxpayers with this debt include the selection of a waterfront site that was $147 million more than another suitable site; foregoing an income-generating hotel on the property; a Great Recession bond deal, in a move to save the project, that increased the city's total debt to approximately $840 million; an underperforming tax increment financing district (TIF) that generated almost $14 million less than expected in the first three years; calculations based on outdated information; escalating annual debt payments; a bond refinance deal that added $100 million to the city's tab and a bad deal with the university that saw the school collect record revenue while limiting its obligation to pass that along to the city. During a lease renegotiation, the university increased the percentage it paid the city.
    According to the Harvard Political Review, cities usually end up with a raw deal when they decide to finance sports stadiums. In fact, 83% of economists polled as part of a University of Chicago study said these projects end up costing taxpayers more than the value of the local benefits they're promised. For example, the city of Detroit cut pensions for retirees, according to the International Business Times, on the same day that plans for the taxpayer-funded Red Wings hockey arena were announced.

    Like in the case of the Yum Center, cities often use tax-free bonds to finance their contributions, but some lawmakers were intent on removing that ability through last year's $1.5 trillion tax reform bill. However, during the last few days of negotiations, that provision of the bill was removed.
    Last edited by sirthought; 12-13-2019 at 01:18 PM.

  3. #33
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    Quote Originally Posted by sirthought View Post
    Using Louisville as an example of this working is misguided. Cincinnati taxpayers should definitely take caution when looking at the Yum Center.

    Debts for KFC 'Yum Center' stadium in Louisville swell to $1B
    I'm well aware of the economic situation between the yum center and the city of louisville. However, that is a separate issue than tournament games being played at yum and why it is seen as a net positive by the city of louisville and the school.

  4. #34
    Supporting Member noteggs's Avatar
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    Interesting they quoted an economists study at the University of Chicago. Guess Chicago and DePaul didn’t look in their own backyard for advice when the decided to build Wintrust. Amazing how many times officials say, “just build it and people will come.”

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