Chiefs, Royals Stadium Funding Approved by Missouri State Senate
The Missouri state senate moved forward with financing stadium improvements for the Kansas City Chiefs and Royals when the majority of the population was asleep.
During the special session called by Governor Mike Kehoe in late May, Senate Bill 3, which included the Show Me Sports Investment Act, was enacted 19–13. The legislation would establish a fund of state bonds that would cover up to 50% of the building or repair of any sporting facilities with at least 30,000 seats in the state, with a focus on professional sports arenas and stadiums (not collegiate venues).
While GEHA Field at Arrowhead Stadium can accommodate over 76,000 Chiefs spectators, Kauffman Stadium can accommodate close to 38,000 Royals fans. However, the Royals want to construct a new stadium that may cost anywhere from $1 billion to $2 billion, either in Kansas or Missouri. The Chiefs want Arrowhead renovated for at least $1 billion.
A rival offer from nearby Kansas, which has given the clubs until June 30 to agree, sparked the haste to ratify a package.
The use of STAR (sales and tax revenue) bonds to finance up to 70% of the building of new stadiums for one or both teams was approved by Kansas state legislators in June 2024. The bond would theoretically be financed by taxes collected from eateries, bars, and other businesses located inside the bond district.
Two months after Jackson County, Missouri, voters rejected a referendum in April 2024 calling for a 3/8th-cent sales tax to fund the plans for both teams, Kansas authorized the bonds.
In order for lawmakers to vote on a few proposals, including the Show Me Sports Investment Act, which is supported by Republican state representative Chris Brown, Governor Kehoe summoned a session on May 27.
After his earlier attempt to push legislation on May 13 was thwarted by resistance from both sides of the aisle in the state senate, despite its initial passage in the state house, Kehoe, a Republican serving his first term, called the special session.
Although Republicans and Democrats opposed the plan for different reasons at first, they were both incensed that Kehoe attempted to force a vote on a proposal that had not yet been given a public hearing. The teams’ continuous flirtations with the state of Kansas have worried Kehoe and act fans.
Despite passing the stadium act in late May, Missouri’s state house will get another opportunity to examine the entire law, which also contains plans for a new mental health center in Kansas City and further disaster relief measures following tornadoes that struck the St. Louis area.
One of the Royals’ associate companies bought a mortgage for one of the few potential stadium locations in Johnson County that the organization has examined, according to a story in the local media last Thursday.
Royals owner John Sherman declared in 2022 that the team would vacate Kauffman Stadium prior to the lease’s expiration following the 2030 Major League Baseball season, with the intention of relocating to a new stadium in Kansas City. Between 2007 and 2009, Kauffman, MLB’s fifth-oldest venue, received a $250 million makeover.
Although the organization stated that it would spend at least $1 billion to purchase and develop the property for and around a new facility, only $300 million of that sum would go into building a stadium.
Arrowhead has undergone two renovations by the Chiefs since 2007, with the most recent round of improvements to the lower bowl seating, team locker facilities, and video boards scheduled for 2020. The team revealed plans in February 2024 to increase stadium capacity with yet another phase of renovations in 2027, which are expected to cost $1.15 billion. The third-oldest stadium in the NFL, Arrowhead, has a lease that ends in 2030.
Residents of Jackson County approved a 0.375% sales tax hike in 2006 to pay for the final upgrades to both sites. Vouchers for 50% off two Royals tickets on specific nights were distributed to every residential address in the county as part of the agreement.
The Royals are ranked 28th in Sportico’s MLB team values at $1.36 billion, generating $324 million in revenue during the final full season in 2024. The only teams with worse rankings are the Miami Marlins and Tampa Bay Rays. The Chiefs are ranked 18th out of 32 NFL teams with $5.43 billion, having just returned from their third straight trip to the Super Bowl in February. Compared to 2023, that valuation represents a 20% gain.
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