Missouri Gov. Mike Parson anticipates that the state will formulate an aid plan by the close of the year to retain the Kansas City Chiefs and Royals. This comes on the heels of Kansas greenlighting a financing scheme covering up to 70% of the costs for new stadiums for these storied franchises.
A 50-Year Legacy
The Chiefs and Royals have shared neighboring stadiums in eastern Kansas City for over half a century. However, their leases will expire in 2031. Royals owner John Sherman has made it clear that the team has no intentions of playing in Kauffman Stadium beyond the 2030 season.
Adding urgency to Missouri’s efforts, Jackson County voters in April turned down a sales tax proposal. This initiative would have supported a more than $2 billion downtown ballpark district for the Royals and contributed to an $800 million makeover of the Chiefs' Arrowhead Stadium. Concerns among voters ranged from a preference for the teams' current location to opposition to the tax, and doubts about the hastily revised stadium plans.
Navigating the Political and Fiscal Landscape
Crafting a viable plan for Missouri is laden with complexities. Any proposal will not only require legislative approval but must also garner the backing of Parson's successor and the new legislative body. "We're going to make sure that we put the best business deal we can on the line," Parson asserted, emphasizing the importance of creating a taxpayer-friendly solution. He added, "I think by the end of this year, we're going to have something in place" to present for the new stadiums.
While Parson does not foresee summoning a special legislative session before his term concludes in January, the urgency to act is palpable. "You know, if I was probably sitting there, I'd be doing the same thing. But at the end of the day, we're going to be competitive," he remarked, acknowledging Kansas' strategic moves.
Public Subsidy and Economic Debate
The sports teams, famously adept at leveraging their positions to secure lucrative public subsidies for their stadiums, find themselves in a familiar yet precarious situation. "The Kansas City Chiefs and Royals are big business," Parson pointed out, hinting at the substantial economic stakes involved.
Yet, economists often question the long-term financial benefits these public subsidies bring. While stadiums may boost tax revenue locally, they frequently redirect consumer spending from other entertainment avenues and rarely generate enough new economic activity to offset the public subsidies fully. Jacksonville's recent $1.25 billion stadium renovation deal for the NFL's Jaguars—splitting costs between the city and the team—serves as a pertinent example.
The Road Ahead
Discussions between the sports teams and the Kansas Department of Commerce could commence at any moment. However, as Patrick Lowry noted, "Discussions between the sports teams and the Kansas Department of Commerce could start at any time, but the agency has no timeline for finishing a deal." This leaves a short window for Missouri to craft a compelling counterproposal.
Missouri’s task is formidable, straddling the dual objectives of economic viability and keeping its beloved sports franchises from crossing state lines. "Has to work out on paper, where it's going to be beneficial to the taxpayers of Missouri," Parson reiterated, highlighting the need for a meticulously crafted plan. All eyes will be on Missouri as it endeavors to beat the clock and retain its cherished teams, navigating political complexities and fiscal realities in pursuit of a win-win solution.