Missouri Approves $1.5 Billion Funding Plan for Chiefs and Royals

Kansas City

The Missouri Legislature has approved a $1.5 billion funding plan to retain the Kansas City Chiefs and Royals amid offerings from Kansas for new stadium construction. Governor Mike Kehoe signed the legislation just before departing for a trade mission in France, emphasizing the urgency to secure the professional sports teams’ future in Missouri.

Under the new funding plan, state taxes generated from activities at Arrowhead Stadium, home of the Chiefs, and Kauffman Stadium, home of the Royals, will be used to cover bond payments for necessary renovations and the construction of a new stadium for the Royals. This move was critical as Kansas had presented an offer covering up to 70% of the construction costs for new stadiums, which is set to expire at the end of June.

The aim of the funding package is to ensure that Missouri remains competitive in retaining its professional sports teams, particularly as the NFL and MLB franchises have significant economic and cultural value to the state.

Details of the Legislation

The funding plan not only addresses stadium financing but also includes $125 million allocated for aid to communities affected by severe weather, as well as approximately $200 million earmarked for various construction projects statewide. This broader approach was part of a suite of bills discussed during a special legislative session convened by Governor Kehoe on May 27 due to the pressing nature of these funding issues.

The stadium funding bill passed with a vote of 90 to 58 in the House, garnering bipartisan support. However, the legislation was met with debate concerning concerns over corporate welfare versus the potential for economic development. Proponents argued that retaining professional teams is essential for economic growth, while critics expressed apprehension about the financial implications for taxpayers and whether public funds should support wealthy team owners.

The plan permits state bonds to finance up to 50% of qualifying stadium projects with expenses exceeding $500 million. This rule aims to facilitate substantial investments in stadium infrastructure while limiting financial burdens on the state and its residents.

Political and Economic Context

The decision to pursue this funding plan coincides with the Governor’s outreach to President Trump, requesting a federal disaster declaration in response to tornado damages in St. Louis and other areas. Additionally, the legislation includes provisions to control property tax increases in 97 counties across Missouri, reflecting an effort to manage fiscal responsibility amid significant spending initiatives.

During Governor Kehoe’s absence for his trade mission, Lt. Governor David Wasinger will act as governor. House leaders have indicated differing opinions about how disaster aid might influence the success of the stadium bill.

As a result of the new funding commitment from Missouri, the Chiefs and Royals now have a clearer path to make decisions about their futures. Chiefs owner Clark Hunt acknowledged the passage of the legislation, although no commitment regarding the team’s future has been made public. The expectation is that both teams will make their decisions before the June 30 deadline set by the Kansas proposal.

Supporters of the funding plan stress its importance in securing long-term economic development for Missouri, aiming to preserve thousands of jobs associated with the operations of the teams. As the legislative session concluded, the success of the funding plan signals a significant effort on behalf of the state to retain its sports franchises and the economic benefits they bring.