New law offers major sports subsidies while critics cite unequal aid
Missouri Governor Mike Kehoe has signed new legislation to help fund stadium projects for the Kansas City Chiefs and Kansas City Royals, committing hundreds of millions in public support.
The move follows pressure from neighbouring Kansas, which has offered its own funding package to lure the teams across state lines.
The law, passed during a special legislative session on June 12, will allow Missouri to finance up to 50% of new or renovated stadium costs through state-backed bonds. It also includes up to $50 million in tax credits per stadium. Additional aid may be provided by local governments.
The teams have not committed to remaining in Missouri, but both issued statements suggesting the legislation is a positive step.
“This is a significant step forward,” said the Kansas City Chiefs, in a statement to the Associated Press. The Kansas City Royals called the package “a very important piece of our decision-making process”.
Public funding package raises concern over priorities
The funding law was introduced alongside a limited package of disaster relief and housing aid. It provides $25 million in emergency support to the Missouri Housing Development Commission for families affected by recent tornadoes and storms. Lawmakers from both parties criticised the balance of the proposals.
Senator Stephen Webber, a Democrat from Columbia, said the funding was insufficient. “There’s absolutely no way we’re going to serve a billionaire a feast and leave crumbs for people who just lost their homes,” he told local media during debate.
Senator Rick Brattin, a Republican from Harrisonville, issued a statement on behalf of the Senate Freedom Caucus, criticising the plan as a misuse of taxpayer funds.
“If Governor Kehoe and legislative leaders insist on using taxpayers’ hard-earned dollars for a half billion dollar handout to billionaire sports team owners in a standalone bill, we will vote against such a proposal,” he said.
Competing offers increase pressure on timeline
The teams currently play at the Truman Sports Complex in Kansas City, where their leases expire in 2031. In April 2024, Jackson County voters rejected a sales tax extension that would have helped finance an $800 million renovation of Arrowhead Stadium and supported a $2 billion ballpark district for the Royals.
In response, Kansas authorised bonds for up to 70% of stadium construction costs. The offer expires on 30 June. Reports from the Kansas City Star confirm that the Royals have secured property on the Kansas side of the border while continuing to consider Missouri locations.
Governor Kehoe argued that the long-term economic benefits of retaining both teams would outweigh the public costs.
According to data cited by the Governor’s Office, Arrowhead Stadium supports an estimated 4,500 jobs, while a new Royals stadium could generate more than 8,000 construction and permanent roles.
Wider construction funding trimmed during negotiations
The stadium law was passed as part of a broader package of budget and disaster relief measures. These include:
- $100 million to the Department of Public Safety for state-wide disaster relief
- $50 million for the University of Missouri to begin work on a Radioisotope Science Centre
- $48.1 million for a new regional mental health hospital in Kansas City
Some legislators noted that the stadium subsidies survived while several other capital projects, including a series of hospital construction proposals, did not make it into the final bill.
Senator Lincoln Hough, a Republican from Springfield, said in an interview with Missouri Independent that the spending package was incomplete.“It’s kind of like a drop in the bucket,” he said, referring to the disaster aid component.
Lawmakers also raised concerns over property tax provisions included to win support for the stadium plan. The law allows counties to propose referendums to freeze or cap property tax increases for certain homeowners, but the measure is optional and not uniform.
Representative Bryant Wolfin, a Republican from Lincoln County, said the law may violate the state constitution by creating different tax policies across counties. “This bill is unconstitutional, it’s fiscally reckless, it’s morally wrong,” he said during floor debate.
Next steps for teams and state officials
Neither team has announced a final stadium site, but both have indicated they plan to do so before the end of June. If they accept Missouri’s offer, the Chiefs would proceed with a $1.15 billion renovation of Arrowhead Stadium, while the Royals would seek a new stadium site, likely in downtown Kansas City.
Governor Kehoe has the authority to veto individual spending items from the state’s broader budget. Several lawmakers said privately they are concerned their local projects may be at risk if they opposed the stadium funding law.
The political dynamics in the Missouri Senate remain tense after procedural disputes during the regular session. The final passage of the law required negotiations across party lines, with the outcome influenced by both public interest and private lobbying from sports organisations.
A spokesperson for the Governor said in a written statement that Kehoe “respects the legislative process and hopes that legislators will work together to deliver on the time-sensitive issues in his call for the special session”.