Legal problems incoming for Louisville

[Matrim55]

http://thevillevoice.com/2014/05/08/arena-authority-uofl-legal-problems-coming/

 

[sportsart]

One can only hope it's a deep, deep mess.

 

[CTGoonie]

Just the curse of the ACC striking again.

 

[Jimdish255]

Interesting comments:

The 'ole Highlander // May 11, 2014 at 1:44 pm

MD 2020: I love it here, I just think the local sports-versity’s academic program is a pile of manure and it is primarily responsible for holding Louisville back from an even greater future. Furthermore, MD 2020, if you’re an MD graduate from the local sports-versity’s medical school, you ought to be as embarrassed as am I.

 

[noeynox]

somehow, their legal problems will be tied to our APR.

 

[Dooley]

somehow, their legal problems will be tied to our APR.

...and Paul Pasqualoni's record.

 

[freescooter]

My favorite comment was the one about the "floating penitentiary". One can only hope a few people go to jail over this mess which is killing the City.

 

[Rocktheworld]

"Bankruptcy," "contract"

Lol like nobody saw this coming. This could get good.

But what's up with "immigration?"

 

[CL82]

Wow could end up being a bit of an embarrassment to the ACC. Fortunately Louisville is a quality academic institution so they always have that to fall back on.

 

[freescooter]

Wow could end up being a bit of an embarrassment to the ACC. Fortunately Louisville is a quality academic institution so they always have that to fall back on.

Spit my coffee reading that!

 

[sdhusky]

Spit my coffee reading that!

Petrino is going to win. Win big.

And thats all that matters.

 

[kingdobbs]

"Bankruptcy," "contract"

Lol like nobody saw this coming. This could get good.

But what's up with "immigration?"

My guess would be a non-zero number of the employees of the arena are of questionable immigration status.

 

[freescooter]

I suspect he will win. Louisville will accept a plant if it can fill a key role in its football program. though truth be told it would accept not much above that into its undergrad programs, too. Fill out the matchbook cover correctly and you're in.

 

[gioff23]

Petrino is going to win. Win big.

And thats all that matters.

he undoubdetly will for 2-3 years and then he will revert to being Bobby P., which means he will look elsewhere, at home and at work, for opportunities while neglecting the recruitng trail. UL will be left as high and as dry as the folks paying the arena bills

 

[John Greene]

http://thevillevoice.com/2014/05/08/arena-authority-uofl-legal-problems-coming/

Have you by any chance checked to see if the "Jake" who wrote the article happens to work at a State Farm call center?

 

[FDNY99]

When the issues with Rutgers AD Julie Hermann popped up and Jurich went to bat for her..vouching for her and backing her 100% it raised some flags for me. After his rehiring of Petrino and subsequent issues that developed when Manhattan BB Coach Steve Masiello had the USF job offer rescinded when he was found to not have a degree (again Jurich and this time Pitino came out in support of Masiello); those flags were flying at full mast. It seems as though everything at UL isn't really what it seems after all. Jurich has built that athletic deptartment on smoke and mirrors, and it seems as though either the smoke machine is about to sot or mirrors will break VERY soon. The financing issues of the Yum Center are going to come out now. Especially when UL assumes the bonding debt. The ACC owns UL now...and it looks to be getting ugly VERY fast!!

 

[Seaa Blue]

Wow. This is not new news:

"Shocker: U of L has right to buy KFC Yum! Center if Arena Authority defaults"

http://insiderlouisville.com/news/s...uy-kfc-yum-arena-if-arena-authority-defaults/

 

[FDNY99]

Wow. This is not new news:

http://insiderlouisville.com/news/s...uy-kfc-yum-arena-if-arena-authority-defaults/

My wife has worked in government finance for over 25 yrs..when she saw this article, all she could do is shake her head and say wow. This is not good, and I'd bet Jurich is up to his elbows in this whole thing!

 

[noeynox]

I fail to see what UL did wrong here. The arena people bent over in an effort to get Louisville to agree to have arena built where it is. Now they want to renegotiate terms, now after they built the arena where UL would not have want it?

All I know is that UL has had some shrewd people running their AD. It has served them well in going from the Conference USA, to the Big East, to the American to the ACC. They have done whatever it takes. Like WVU. I can't knock them.

Feel bad for the Louisville tax payer, but it's on them to put pressure on UL to be willing to agree to change those terms, but really who here would agree to a less beneficial agreement?

 

[upstater]

When the issues with Rutgers AD Julie Hermann popped up and Jurich went to bat for her..vouching for her and backing her 100% it raised some flags for me. After his rehiring of Petrino and subsequent issues that developed when Manhattan BB Coach Steve Masiello had the USF job offer rescinded when he was found to not have a degree (again Jurich and this time Pitino came out in support of Masiello); those flags were flying at full mast. It seems as though everything at UL isn't really what it seems after all. Jurich has built that athletic deptartment on smoke and mirrors, and it seems as though either the smoke machine is about to sot or mirrors will break VERY soon. The financing issues of the Yum Center are going to come out now. Especially when UL assumes the bonding debt. The ACC owns UL now...and it looks to be getting ugly VERY fast!!

Why would UL assume the debt? They don't have to do anything they're not required to do.

The only problem for UL that I see is what happens if the place is shuttered because it costs more to run it than to shutter it.

The Indy Colts ran into the same problem and they were forced to negotiate a higher rent. That's what will happen with UL as well. They will simply pay more to use the facility.

 

[upstater]

I fail to see what UL did wrong here. The arena people bent over in an effort to get Louisville to agree to have arena built where it is. Now they want to renegotiate terms, now after they built the arena where UL would not have want it?

All I know is that UL has had some shrewd people running their AD. It has served them well in going from the Conference USA, to the Big East, to the American to the ACC. They have done whatever it takes. Like WVU. I can't knock them.

Feel bad for the Louisville tax payer, but it's on them to put pressure on UL to be willing to agree to change those terms, but really who here would agree to a less beneficial agreement?

I wrote above that the same thing happened in Indy with the new dome. The Colts were forced to negotiate a higher rate simply because it was costing taxpayers so much to keep the place open. It wasn't only the sunk cost in the building that hurt the taxpayer. I'm not sure about the Louisville situation but if it costs so much to run the place rather than keep it shuttered, UL is going to have to negotiate.

 

[FDNY99]

Why would UL assume the debt? They don't have to do anything they're not required to do.

The only problem for UL that I see is what happens if the place is shuttered because it costs more to run it than to shutter it.

The Indy Colts ran into the same problem and they were forced to negotiate a higher rent. That's what will happen with UL as well. They will simply pay more to use the facility.

After reading the second link posted I was wrong...they won't assume the debt...they will end up going to court to enforce the clause in their contract to buy the arena for pennies on the dollar screwing the Louisville taxpayers. This is going to be ugly...and in the end paid for by the taxpayers of Louisville. The bond ratings from Moody's will have ramifications down the road. Any of you involved in local government (be it as an employee or on elected boards) or in municipal bond work should keep an eye on this as it plays out.

 

[Seaa Blue]

I wrote above that the same thing happened in Indy with the new dome. The Colts were forced to negotiate a higher rate simply because it was costing taxpayers so much to keep the place open. It wasn't only the sunk cost in the building that hurt the taxpayer. I'm not sure about the Louisville situation but if it costs so much to run the place rather than keep it shuttered, UL is going to have to negotiate.

Our geniuses in Indy started the construction process on Lucas Oil knowing they didn't have nearly enough operating income to run the place.

The city then turned to the state, and the state negotiated a 7 county 1% food tax. I can't help but think that Indy's indulgence (although we are home to 2 pro teams) influenced Louisville to do the same.

 

[upstater]

After reading the second link posted I was wrong...they won't assume the debt...they will end up going to court to enforce the clause in their contract to buy the arena for pennies on the dollar screwing the Louisville taxpayers. This is going to be ugly...and in the end paid for by the taxpayers of Louisville. The bond ratings from Moody's will have ramifications down the road. Any of you involved in local government (be it as an employee or on elected boards) or in municipal bond work should keep an eye on this as it plays out.

I think the lawyer who has a conflicting interest may b right that the clause will be thrown out by judges.

 

[FDNY99]

I think the lawyer who has a conflicting interest may b right that the clause will be thrown out by judges.

One would hope...because if not UL will have pulled off the ultimate boiler room scam on the City of Louisville and the taxpayers. They get an arena for pennies on the dollar and don't have to deal with the ramifications of defaulted bonds. Make no mistake Upstater...after reading the second link these bonds are going to default whether that contract is rewritten or not. Moody's wouldn't have rated them as junk status if they weren't. That is the real issue here...and UL (specifically Jurich) has it's hands DEEP in that cookie jar. In the world of academia/AAU and the such I very much value your opinion. But unless you have suddenly changed careers into Government Finance or Municipal Bond Sales I am going to have to defer to my wife on this one...again she has been a Finance Director of a municipal government since the late 80's with experience working for both a distressed municipality and a Moody's AAA rated municipality.