Kentucky Kingdom has a split ownership structure: the Commonwealth of Kentucky owns the land and permanent structures through the Kentucky State Fair Board, and Herschend operates the park as the majority partner in Kentucky Kingdom Theme Park, LLC. The park sits on the grounds of the Kentucky Fair and Exposition Center in Louisville, and that divide between public land ownership and private business operations has shaped the park since it first opened in 1987.
Herschend Runs the Park
In February 2021, Herschend (then called Herschend Family Entertainment) became the majority partner and operator of Kentucky Kingdom Theme Park, LLC. The deal was coordinated with the Kentucky State Fair Board, the Tourism, Arts and Heritage Cabinet, and the Finance and Administration Cabinet. Ed Hart, the park’s founder and longtime leader, described the transition as turning the park over to “a new generation of leadership.”1Herschend Family Entertainment. Kentucky Kingdom and Herschend Family Entertainment Announce New Partnership
Herschend bills itself as the world’s largest family-owned themed attractions company. Its portfolio includes Dollywood Parks and Resorts, Silver Dollar City, Newport Aquarium, Wild Adventures Theme Park, Adventure Aquarium, and Callaway Resort and Gardens, among other properties.2Herschend Family Entertainment. Herschend to Acquire Palace Entertainment The company has since dropped “Family Entertainment” from its name and goes simply by Herschend.
The Kentucky State Fair Board Owns the Land
The physical ground beneath the roller coasters and water slides belongs to the Commonwealth of Kentucky. The Kentucky State Fair Board holds custody and control of the property, which sits within the broader Kentucky Exposition Center, one of the largest exhibition facilities in the country. Kentucky Kingdom shares a parking lot with the Exposition Center, and the two facilities are intertwined on the same state-owned grounds.3Kentucky.gov. Kentucky Kingdom and Herschend Family Entertainment Announce New Partnership
The legal authority for the arrangement comes from KRS 247.140, which gives the State Fair Board custody and control over property under its jurisdiction. The statute lets the board erect and repair buildings, make improvements, and carry on a program of development and extension of facilities. It also authorizes the board to acquire and hold property by deed, gift, lease, or eminent domain, and to dispose of property as provided by law.4Kentucky Legislative Research Commission. Kentucky Revised Statutes 247.140 – Functions of State Fair Board
In practice, Herschend runs the business, but if the operating relationship ever ended, the land and all permanent improvements on it would stay with the state. The Fair Board acts as landlord.
What the Lease Requires
The operating relationship is governed by a long-term ground lease. When Kentucky Kingdom LLLP negotiated the original reopening deal in 2013, the terms set annual rent starting at $475,000 and increasing by $50,000 each year for fifteen years, capping at $1.2 million for the remainder of the initial term. The Fair Board also receives five percent of gross revenue exceeding $25 million in any operating year.
The lease required significant capital investment as well. The LLLP committed to spending $45 million on park improvements, split between a $20 million equity investment and a $25 million loan. Ongoing annual investment minimums range from $1 million to $2.5 million depending on a revenue-based formula. Every dollar spent on permanent improvements becomes property of the State Fair Board.
When Herschend took over as majority partner, it stepped into this framework. The specifics of any renegotiated terms with the Fair Board have not been made fully public, though the 2021 announcement involved coordination among multiple state agencies, which suggests the lease was at minimum reviewed and approved at the cabinet level.3Kentucky.gov. Kentucky Kingdom and Herschend Family Entertainment Announce New Partnership
How the Park Got Here
Kentucky Kingdom first opened on May 23, 1987, as an expansion of the state fairgrounds. The first season went poorly, the park closed, and it did not reopen until June 1990 under local management.
In late 1997, Premier Parks acquired the park. Premier Parks merged with Six Flags shortly after, and the park was rebranded as Six Flags Kentucky Kingdom on June 5, 1998. Six Flags ran it for roughly a decade before entering Chapter 11 bankruptcy. In February 2010, the company announced it was ceasing operations at Kentucky Kingdom after the State Fair Board rejected an amended lease. The park sat closed for years after the 2009 season.
Ed Hart, who had been involved with the park since its earliest days, assembled an investor group that included Ed Glasscock, Bruce Lunsford, and Al J. Schneider Companies. They formed Kentucky Kingdom LLLP, reached a deal with the state, and reopened the park in spring 2014.1Herschend Family Entertainment. Kentucky Kingdom and Herschend Family Entertainment Announce New Partnership Herschend purchased the LLLP’s majority ownership interest in 2021, which is how the current operator ended up in the seat Hart’s group had rebuilt.