Bisnis

A plan for a new stadium for the Kansas City Chiefs will be voted on in the Legislature

A 170-year-old rivalry is heating up as Kansas lawmakers try to wrest the Super Bowl champion Kansas City Chiefs from Missouri even though economists have long concluded that supporting sports isn’t worth the cost.

Top leaders in the Kansas Legislature approved helping the Kings and Kansas City Royals of professional baseball finance new stadiums in Kansas before a special session on Tuesday. The plan would authorize state bonds for stadium construction and pay for it with sports betting revenue, the Kansas Lottery and additional tax dollars generated in and around the new stadiums.

The state border runs through a metropolitan area of ​​about 2.3 million people, and teams will travel only 25 kilometers (40 miles) west.

Decades of research have concluded that pro sports franchises do not grow the local economy much, if at all, because they capture more of the existing spending from other areas in the same community. But for Kansas officials, the spending would at least come from Missouri and come to Kansas, and Missouri one-uping has its allure.

“I’ve wanted to see Kings in Kansas all my life, but I hope we can do it in a way that will enrich these communities, rather than burden them,” said Rep. Jason Probst, Democratic Alliance. from central Kansas.

The rivalry between Kansas and Missouri can be traced back to the Civil War, before Kansas became a state. People from Missouri came from the east, hoping in vain to create another slave state like theirs. Both sides looted, burned and killed across the border.

There was also the sports rivalry of the century between the University of Kansas and the University of Missouri. And for years the two states have spent hundreds of millions of dollars to attract businesses on one side of the border or the other in pursuit of jobs. They called it a bad deal in 2019.

Missouri officials vow to be equally aggressive in keeping the Royals and Chiefs, and not just because they view them as economic assets.

“They are a source of great pride,” said Rep. John Patterson of Missouri, a Kansas City Republican who is expected to be the next speaker of the state House.

Kansas legislators are seeing the Chiefs and Royals play because voters on the Missouri side rejected in April an extension of the local sales tax to maintain their joint stadiums. Lawmakers have also argued that failure to take action risks one or both parties leaving the Kansas City area, although economists are skeptical that the threat is real.

While the stadium lease runs through January 2031, Kansas officials say teams need to make decisions soon so new or renovated stadiums are ready by then. They also promised the Chiefs a stadium with a dome or retractable roof that could host Super Bowls, college basketball Final Fours and large indoor concerts.

“You have this property and all the businesses that moved there because of it, or were created there,” said Rep. Sean Tarwater of the state of Kansas, a Republican from the Kansas City suburbs of his state and a leader of immigration efforts. . “He’s going to take trade out of that place every day.”

About 60% of the local population lives in Missouri, but the Kansas side is growing very quickly.

Despite legislative pressure in Kansas, Missouri lawmakers are not rushing to propose alternatives. Republican Mike Parson of Missouri told reporters Thursday that his state is “not going to just pass,” but also said, “We’re in the early stages” of the race.

Both states will hold primary elections on Aug. 3, which has the most legislative seats on the ballot this year. Missouri’s April vote on a local stadium tax suggested funding professional sports teams could be a political setback in that state, especially with conservative voters in GOP primaries.

“In Missouri, the Republican Party was led by a business wing that might be in favor of this kind of thing, but in the Trump era, it’s not,” said David Kimball, of the University of Missouri-St. Louis professor of political science. “When they’re following the rules, they’re the most Trump-oriented wing, the biggest supporters of spending taxpayer money on anything.”

Kansas Republicans are under pressure to prevent the government from picking economic winners and losers. For Probst, a Democrat, the concern is using government to “make rich people richer,” meaning party owners.

Economists have studied elite sports teams and stadium sponsorships since at least the 1980s. JC Bradbury, a professor of economics and finance at Kennesaw State University in Georgia, said research shows funding stadiums is “a negative channel for economic growth.”

While supporters of the Kansas effort cited a report showing positive economic results, Bradbury said “fake” reports are a staple of field campaigns.

“Public investment forums are not good, and I’d say it’s unanimous,” said Bradbury, who reviewed the studies himself.

Yet more than 30 tourism promoters have signed up to receive a stadium financing plan from Kansas lawmakers, and the Kansas Chamber of Commerce’s CEO called it a “once in a lifetime opportunity” to attract the Kings.

The Chiefs have not only won three Super Bowl titles in five years, but they have a strong following that has grown due to the intensity of Travis Kelce’s love affair with pop star Taylor Swift.

Host cities find the National Football League attractive because the franchises are worth billions and the wealthy owners and famous players command the media spotlight, said Judith Grant Long, associate professor of sports management and urban planning at the University of Michigan and its director. center in sports areas.

“All of this comes together in a powerful way for politicians, public officials and local businesses to hopefully use their influence,” he said.

Subscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. Sign up for free.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button