Could the Royals be headed to Kansas?
The Sunflower State is making a pitch for the Chiefs and Royals.
The Kansas Senate is expected to vote today on a bill to authorize new incentives to lure the Royals and Chiefs across the state line, by potentially fully funding new stadiums.
The proposed legislation would create a new STAR bond program specifically for sports projects costing $1 billion or more, authorizing the Department of Commerce to enter negotiations with sports teams. Lawmakers indicate they have not yet spoken to the teams.
If the Senate passes a bill, the provision will be inserted as an amendment into a House bill that will require approval by that chamber. The Kansas legislative session is scheduled to end today, meaning lawmakers must move quickly. If Missouri lawmakers wanted to make a counter-proposal, they have until their session is scheduled to adjourn on May 17, although either state legislature could call a special session.
STAR (Sales Tax and Revenue) bonds are a financing tool that allows cities in Kansas to issue bonds that are paid back through revenues generated by a project. STAR bonds were used to finance the Kansas Speedway, Children’s Mercy Park, and the Legends shopping district, which transformed Kansas City, Kansas. But the program has been accused of not meeting expectations for other projects like the Topeka Heartland Motorsports Park and the Prairiefire project in Overland Park. Critics also allege the financing tool deprives governments of tax revenues for decades.
The STAR bonds being proposed for the sports teams differ from past bonds in that they would cover 100 percent of the costs of the project, rather than the typical 50 percent. It also differs in that local governments would not have to pledge their share of sales tax revenue to repay the bond, and alcohol taxes could be used to repay the bond. The bonds for these projects would last for 30 years.
Moving to Kansas could allow the teams to take advantage of sports gambling, which the state legalized in 2022. Teams like the Guardians and Mets have set up sportsbooks in their stadiums. Kansas set up a fund to allocate gambling revenue to attract sports teams, but due to loopholes, the fund only projects to have $10 million by 2025, and may even be falling short of those projections. Missouri has yet to legalize sports gambling. Kansas Governor Laura Kelly (D) has said she would welcome the Chiefs, but is not actively looking to lure them, saying the state is not in a financial position to recruit them.
Earlier this month, Jackson County voters rejected a proposal to extend the 3/8 cent sales tax currently used to pay for Truman Sports Complex renovations for another 40 years to pay for a new downtown stadium for the Royals and renovations to Arrowhead Stadium. The Chiefs have recently suggested splitting from the Royals in their pursuit for a stadium solution, and owner Clark Hunt has indicated the team will explore leaving Arrowhead Stadium. This week, Jackson County Executive Frank White pled for patience, saying he was “just waiting for the right opportunity” to resume discussions with the teams.