The University of Kentucky and the Lexington Center Corporation have hashed out an agreement to keep the UK men’s basketball team at Rupp Arena through the 2033 season.
“This agreement extends the viability of Rupp Arena and ensures its vitality for almost 60 years,” said LCC Board chairman Brent Rice in a release announcing the agreement. “As we celebrate Lexington Center’s and Rupp Arena’s 40th anniversary, this commitment from UK stretches that vital contribution to the city and the state well into the future.”
If finalized, the new 15-year lease would begin at the expiration of the existing lease, which runs out at the end of the 2018 season. The deal, which was outlined in a letter of intent signed this week by UK and LCC officials, would increase the yearly lease payment from UK Athletics by about $900,000, to $1.9 million for 28 events. The university would control multimedia rights and the sale of souvenirs during games and have a greater role in concessions, catering and parking.
UK would also agree to reimburse the Lexington Center for $1,093,750 in previous design work, and LCC would make new capital investments of roughly $15 million for improvements to Rupp Arena.
In addition, UK would receive revenues from the creation of four clubs and club spaces within the arena for use during games and other events.
Under the agreement, the name of Rupp Arena will not change.
“This letter of intent underscores our shared commitment to the health and vibrancy of downtown Lexington and the broader community we call home,” said UK President Eli Capilouto. “It also demonstrates the strong partnership that exists between the university and the city of Lexington as we have worked collaboratively – and in a spirit of partnership – over the last several months toward an agreement that represents our shared interests and principles.”
The terms of the lease are expected to be finalized in the coming months, LCC and UK officials said.