Tyrone Garner, Mayor of Kansas City, Kansas, has endorsed the idea of using sports betting revenue and STAR bonds to attract two major league franchises – the Kansas City Chiefs and the Kansas City Royals – to move from neighboring Missouri to the state.
The back-to-back Super Bowl champion Chiefs and surging Royals of the MLB both play in Kansas City, Missouri.
However, Jackson County residents recently voted against a proposed sales tax measure that would have been used to fund a new stadium for the Royals and renovations to Arrowhead Stadium, home of the Chiefs.
Sensing an opportunity, neighboring Kansas is looking to coerce the sports franchises across the border.
“It offers a real opportunity to keep those organizations here in the Kansas City metropolitan area,” said Garner, according to KSHB Kansas City. “I want the Chiefs and the Royals, those leadership teams, to know that we're open for business and we're economically, developmentally hungry.”
Part of the plan
When Kansas sports betting was legalized in 2022, part of the legislation included a fund to attract professional sports teams to the state. In total, the offer can include up to $1 billion that will mostly go towards financing two new stadiums for the Super Bowl champions and beloved MLB franchise.
Part of the funds will come from bonds backed by sports wagering and lottery revenues, but most of the financing will rely on STAR bonds, which will be secured by future sales tax revenues from the stadiums and surrounding venues.
The proposal is scheduled to be discussed in a special session on June 18, although the focus of those sessions is on tax cuts. If those tax cuts are approved, lawmakers have indicated they would be willing to discuss STAR bonds legislation.
As STAR bonds don’t need voter approval, if the measure is approved in the special session, the legislature can move forward with its plans. STAR bonds have been used in the state on similar projects, including the Kansas Speedway which hosts NASCAR and other motorsport races.
“We want to keep two good organizations right here in the Kansas City metropolitan area,” Garner said. “We want those teams to know that it may not have worked out on the Missouri side, so we'd like to give you options on the Kansas side.”
