Missouri Governor Calls Special Session to Keep Chiefs and Royals
Missouri Governor Mike Kehoe announced that he will convene the state legislature for a special session. The main objective is to consider economic incentives to ensure the permanence of the Kansas City Chiefs (NFL) and Kansas City Royals (MLB) professional teams in the state. This decision comes after the failure to approve a plan during the regular annual legislative session.
The Republican governor seeks for Missouri to financially support the renovation or construction of stadiums for the Chiefs and the Royals. The situation arises after lawmakers failed to reach an agreement in the ordinary session.
A Kansas law, passed last year, allows the issuance of state bonds to cover 70% of the cost of a new stadium. These bonds would be paid over a period of 30 years, using revenue from sports betting, Kansas Lottery ticket sales, and new sales and alcohol taxes.
Voters in Jackson County, Missouri, where the teams reside, appeared to encourage Kansas officials to try to lure the teams, rejecting a sales tax extension last year. This extension would have helped fund a new $2 billion baseball stadium district for the Royals and an $800 million renovation of Arrowhead Stadium for the Chiefs.
The Chiefs and Royals have shared adjacent stadiums in eastern Kansas City for over 50 years, attracting fans from both states in the metropolitan area. Their stadium leases extend until 2031.
This is a huge economic development package.
Mike Kehoe
Kehoe told reporters during a press conference broadcast live from the Missouri Capitol in Jefferson City. “I would like to make sure we can solidify our offer with legislative approval,” he added.
The Missouri House of Representatives, controlled by the Republican Party, approved a bill backed by Kehoe on Tuesday. This bill would have allowed the state to issue bonds to cover up to half the cost of stadium projects and permit tax credits of up to $50 million. However, the Senate, also controlled by Republicans, abruptly adjourned its regular session work on Wednesday. This happened after a dispute over an anti-abortion measure, without addressing the stadium funding measure.
At least some Kansas and Missouri lawmakers, from both parties, express skepticism about state incentives. Many economists argue that public funding for stadiums is not profitable, as sports tend to divert discretionary spending from other forms of entertainment rather than generate new revenue.
