Deal could mean more, better concerts coming to Rupp Arena

The Lexington Center Corporation tentatively agreed to a new partnership Thursday that officials hope will help attract more concerts and bigger artists to Rupp Arena, the area’s largest indoor concert venue.

The partnership with Oak View Group would allow Rupp Arena to join a consortium of 27 other major arenas for music concerts and other family-friendly entertainment. Oak View Group has partnered with Live Nation, which is the largest concert and show promoter in the country.

The Lexington Center Corp. board voted Thursday to approve the general terms of the booking agreement. Some of the details still need to be worked out. The Lexington Center Corp. oversees Rupp, the attached convention center and the Lexington Opera House.

“I’m very optimistic about it,” said Bill Owen, president and CEO of Lexington Center Corp. “It certainly opens the door for more content and more diverse content. Our anticipation is that we are going to see more and different types of concerts, family shows and other entertainment.”

Oak View Group has already started booking events for Rupp. The Eagles announced they will play Rupp on April 10. The Eagles concert in July 2015 holds the record for ticket sales for a single concert in Rupp Arena.

Oak View will guarantee Rupp Arena a minimum annual payment of $1.4 million. That number is based on the average revenue that events in Rupp have generated over the past five years minus the University of Kentucky men’s basketball games.

Revenue generated over the guaranteed amount would be split between Rupp and Oak View. The first $1 million in extra revenue would be split evenly. Rupp would get 60 percent and Oak View would get 40 percent if profits go above $1 million.

There would be be no upfront cost to Rupp Arena and the deal is not exclusive. Rupp can still book with other concert promoters, Owen said.

Sims Hinds, vice president of development for Oak View Group, told the board during its November meeting that Rupp Arena is within driving distance of other major arenas already in the partnership, which makes it a convenient stop for major concert tours. That’s why the group wanted Rupp Arena in its consortium of venues.

“It’s in proximity to Indianapolis, Cleveland, Nashville and Atlanta,” Hinds said. “You can compete with bigger NBA venues.”

This story was originally published December 21, 2017 at 3:16 PM with the headline "Deal could mean more, better concerts coming to Rupp Arena."