I cover the Kansas City Chiefs, the NFL and sports business.
Though much of the attention has been focused on Kansas’ bid to become the new home for the Kansas City Chiefs, staying in Missouri remains a viable possibility.
“We are having some pretty significant conversations with leadership on the Missouri side,” Chiefs president Mark Donovan stated. “We are in talks with the people in Kansas. We are in conversations and will continue to do so with the people of Missouri.”
The Chiefs’ current home, GEHA Field at Arrowhead Stadium, is on the Missouri side of the border, but there had been talk that they may relocate to Kansas when the state’s governor, Laura Kelly, signed into law an expanded plan to sell STAR (sales tax and revenue) bonds on June 21.
Kansas is one of three states with this unique finance method, and under this proposal, state lawmakers would issue bonds worth up to 70% of the stadium project’s anticipated cost.
“We appreciate the effort that the Kansas legislature made to really supercharge STAR Bonds to make it make sense for a professional sports team to come over there and take advantage of that,” Donovan told the crowd. “We don’t take that for granted.”
According to this Kansas plan, a portion of the state’s retail sales tax from the stadium and neighboring commercial districts, as well as lottery and sports betting proceeds, would be used to repay the stadium’s STAR bond.
After the debts are paid off, which is expected to take 30 years under the plan, the district’s sales tax will be redirected to the state’s general fund.
Donovan, on the other hand, stated that it is still too early to say whether the STAR bond idea is practical.
“There’s a lot of work to be done with Kansas to see what the reality of that is,” Donovan pointed out. “The good news is that it creates more options.”
Donovan stated that staying at Arrowhead and rebuilding the structure is still “very much” an option.
Though the Chiefs have a lease to play there until the end of the 2030 season, Donovan believes they must decide on a direction within the next six months.
“That’s the timeline we’re working on,” he told me. “Six months from now, we’ll need to know exactly where we are. We may not be done, but we must have a really excellent notion.”
Another future event that could have an impact is the election to successor current Missouri Governor Mike Parson.
Parson is a passionate Chiefs fan, but that did not stop Missouri’s prior strategy from failing.
In April, Jackson County, Missouri people voted 58% to 42% against a 3/8 cent sales tax to assist pay the Kansas City Royals’ move to the East Crossroads district and the Chiefs’ stadium upgrades.
One of the most strident critics was Jackson County executive Frank White, a five-time All-Star whose No. 20 was retired by the Royals.
White had claimed that the Royals and Chiefs were not forthright about the community benefits that would result, that the clubs’ owners should pay a larger share of the tab, and that the tax would have cost too much at $2 billion over 40 years.
“It’s just not an equitable situation,” White exclusively stated. “I can’t just approve this transaction because I played sports. I was elected to be a good steward of taxpayer resources, and that is my aim.
Donovan stated that he visited with White after the vote and had a cordial talk.
There has also been speculation that sports betting, which is legal in Kansas but not Missouri, could influence the Chiefs’ decision on which state to play in, but Donovan dismissed the idea.
“I don’t think that is a significant factor,” Donovan remarked. “If we get something done in Missouri, it’s something we’d be able to add to whatever we’re going to do here, but that’s not a big factor in making the decision one way or the other.”
Aside from gambling difficulties, the Chiefs’ future home is still a big question.
“This is going to impact the future of this franchise for generations,” Donovan told the audience. “We’ve got to get it right and we are going to do the due diligence.”