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State and Local Government / Transparency

Chiefs Miss the Extra Point …

By Calvin Harris II on Dec 16, 2008

Right now, I am a little disappointed in the Kansas City Chiefs. Not because of their 2-12 record, or for them being at the bottom of the AFC West. After receiving $50 million in tax credits from the state two years ago to assist with stadium renovations, the Chiefs had the nerve to ask for another $25 million.

According to the St. Louis Post-Dispatch, “The professional football team’s owners are seeking the new subsidy to upgrade Arrowhead Stadium in Kansas City and finance an indoor training arena in St. Joseph.”

Given the financial climate of our state, money is tight. Plus, our governor-elect is already having trouble in his search for money to fund future projects. While the working poor and retirees can barely afford tickets to go to a game, we are asking them to pay the tab for building new restaurants and luxury suites in the stadium. I think this is terrible. It’s also economically unjustified. Despite the development arguments of those who support government funding for stadiums, the theory and practical research both demonstrate that this type of appropriation is a net loss to society:

Households face budget constraints; they must meet their unlimited wants with a limited amount of income. The arrival of a professional sports team in a city provides households with a new entertainment option. Households that choose to attend games will spend less on other things, perhaps going out to dinner, bowling, or the movies. If the impact of each dollar spent on these forgone alternatives has a larger effect on the local economy than the impact of each dollar spent on professional sporting events, the local economy will contract and income will be lower. Why would the impact of each dollar spent going to a professional basketball game be smaller than the impact of each dollar spent on bowling?

But this is what happens when government throws out tax credits like rice in a wedding.

Come on, Chiefs — time to draw up another play. If you were at least .500, maybe we could talk.

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Calvin Harris II

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