Kansas City Mum on Royals Ransom

Corporate Welfare |
By Patrick Tuohey | Read Time 3 min

It has been nearly two months since Kansas City leaders and the Royals announced plans for a new downtown ballpark at Crown Center. Yet we still don’t know the amount taxpayers will be asked to provide for the project.

According to The Kansas City Star, the city has not yet formally applied for funding under Missouri’s Show-Me Sports Investment Act. State participation is a central piece of the financing plan, and city officials are already considering ways to secure up to $600 million in local support.

Negotiations of this scale are complicated. City, state, and team officials may simply still be working through the details. But the delay raises an obvious question. If the public financing package is as straightforward as supporters suggest, why are the numbers still unavailable? (The same could be asked of the Chiefs deal in Kansas.)

One possibility is that the arithmetic is becoming more difficult as officials move from press announcement to actual financing plans.

When the stadium was announced, the Royals indicated that roughly 60% of the project’s estimated $1.9 billion cost would come from public sources. That implies well over $1 billion in taxpayer support. Yet the Show-Me Sports Investment Act places meaningful limits on state assistance. As I noted previously, available estimates suggest the state’s contribution may be closer to $250 million than the much larger figures that have circulated publicly.

If state support is lower than hoped, the remaining public contribution would need to come from Kansas City taxpayers through various tax diversions and subsidies. It won’t be cheap.

The political environment may become even more challenging if voters get a chance to weigh in. Opponents of the project have submitted signatures seeking a public vote on the city’s participation. That effort remains uncertain, but financing proposals acceptable to elected officials may not be acceptable to the public—as we learned in 2024.

To make matters more confusing, the Star previously reported:

Mayor Quinton Lucas told reporters that the city has projections for how much tax revenue a new stadium could generate based on what Kauffman Stadium in the Truman Sports Complex produces now — which city officials say is roughly $5 million a year.

That $5 million is currently going into the city’s coffers and used to fund police, infrastructure, and other public goods. Moving the team downtown and then returning that money to the Royals is not a wash—it’s a $5 million hit to the budget each year. And that does not include the cost to the city if the stadium fails to generate enough money to cover the bond payments—because the city will issue the bonds and back them up.

This project is bad for taxpayers and bad for the city. The delay from the city and the state in providing financing details suggests that elected leaders are beginning to understand exactly how bad it will be.

Thumbnail image credit: Ryan Wewers / Shutterstock
Patrick Tuohey

About the Author

Patrick Tuohey is a senior fellow at the Show-Me Institute and co-founder and policy director of the Better Cities Project. Both organizations aim to deliver the best in public policy research from around the country to local leaders, communities and voters. He works to foster understanding of the...

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