Missouri Governor Calls Special Session to Keep Chiefs and Royals
Missouri Governor Mike Kehoe announced this Friday the convening of a special session of the state legislature. The main objective is to discuss economic incentives to keep the Kansas City Chiefs (American football) and Kansas City Royals (baseball) professional teams in the state, given the possibility of them moving to Kansas.
The decision arises after the legislature’s failure to approve an incentive plan during its regular annual session.
Governor Kehoe, a Republican, seeks for Missouri to financially support the construction of a new stadium or the renovation of the current one for the Chiefs, as well as the construction of a new stadium for the Royals.
Last year, the state of Kansas enacted a law authorizing 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.
The situation is complicated after the rejection by voters in Jackson County, Missouri, where the teams reside, of a sales tax extension. This extension would have funded a new $2 billion baseball stadium district for the Royals and an $800 million renovation of the Chiefs’ Arrowhead Stadium.
The Chiefs and Royals have shared contiguous stadiums in eastern Kansas City for over 50 years, attracting fans from both states that make up the metropolitan area. Their stadium leases expire in 2031.
This is a huge economic development package. I would like to make sure we can solidify our offer with legislative approval.
Mike Kehoe
The Missouri House of Representatives, controlled by the Republican Party, approved on Tuesday a bill backed by Kehoe. This would allow the state to issue bonds to cover up to half the cost of stadium projects and grant tax credits of up to $50 million. However, the Senate, also controlled by Republicans, abruptly ended its regular session on Wednesday, without addressing the stadium funding measure.
There is skepticism among some Kansas and Missouri lawmakers, from both parties, about state incentives. Several economists argue that public funding for stadiums is not profitable, as spending on sports tends to divert discretionary spending from other forms of entertainment rather than generate new revenue.
