Million-dollar subsidies: Missouri shields Chiefs and Royals to retain them

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Missouri Secures Funding to Keep Chiefs and Royals

Missouri Gov. Mike Kehoe signed a legislative package that includes significant financial aid to persuade the Chiefs and Royals to remain in the state. The initiative, approved by state lawmakers, allocates hundreds of millions of dollars to support football and baseball teams. The Chiefs and Royals currently play at the Truman Sports Complex, where they share facilities at Arrowhead Stadium and Kauffman Stadium. Their lease agreements with Jackson County, Missouri, expire in January 2031. Last year, Jackson County voters rejected a sales tax extension that would have funded an $800 million renovation of Arrowhead Stadium and a $2 billion stadium district for the Royals in downtown Kansas City. Faced with slow support from Missouri, Kansas lawmakers authorized bonds to cover up to 70% of the cost of new stadiums in their state. The Royals have acquired property in Kansas, although they have also explored other possible locations in Missouri. Kansas’ offer expires on June 30, and both teams hope to have a defined plan by then. Missouri legislation authorizes bonds covering up to 50% of the cost of new or renovated stadiums, as well as up to $50 million in tax credits for each stadium and unspecified aid from local governments. The Chiefs have proposed a $1.15 billion renovation of Arrowhead Stadium. The Royals have insisted on building a replacement for Kauffman Stadium. Help for stadiums was already a concern in Missouri when a deadly tornado struck St. Louis on May 16, causing an estimated $1.6 billion in damage. Disaster relief, linked to stadium funding, garnered broad support. Democratic state Representative Kimberly-Ann Collins shared her experience of seeing the tornado devastate her neighborhood in St. Louis.

The houses are demolished and destroyed. It hurts me deeply to see the families who have worked so hard, the businesses that have worked so hard, to see them destroyed.

Kimberly-Ann Collins
The Chiefs, in a statement, described the legislative vote as a “significant step” that allows them to explore options to remain in Missouri. The Royals called the legislation “a very important piece of our decision-making process,” but made no specific commitment about the location.

Our focus remains the same: to prioritize the best interests of our team, fans, partners, and the regional community as we seek the next generational home for the Kansas City Royals.

Royals Statement
The St. Louis Cardinals could also be eligible to receive aid if they undertake a project of at least $500 million. They built their current Busch Stadium almost 20 years ago.

We have the opportunity to perhaps save what is the symbol of this state.

Jim Murphy
The legislation faced some bipartisan opposition, with critics calling it a subsidy for wealthy franchise owners. Others expressed concern about a property tax exemption for homeowners that, it was alleged, violated the state constitution by providing different levels of tax relief in various counties.

This bill is unconstitutional, it is fiscally imprudent, it is morally wrong.

Bryant Wolfin
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