Patrick Mahomes’ Chiefs Reportedly Offered $400M+ to Stay, Says Mayor Quinton After Kansas City OK’d Aggressive Retention Plan

The Missouri-Kansas war continues! There have been attempts to shift the Kansas City Chiefs and Kansas City Royals to the Sunflower State but Missouri won’t let go easily. Both sides are willing to take large steps to have these teams. Sales tax and revenues will play a huge role in the final decision.

“The first thing I’ll note is that Kansas City and the state of Missouri will continue to work hard, continue negotiations with the Kansas City Chiefs and Royals… Nothing passing today changes that reality,” Quinton Lucas said- the KC Mayor, Missouri. In fact, Kansas State legislators passed a tax cut bill to lure teams to their side on Tuesday. This decision will eventually allow stadium legislation conversations to begin and STAR Bonds can be used to build stadiums for the teams that will move.

Per a report from The Star, the legislation allows Kansas STAR bonds to pay for up to 70% of the cost of the stadiums. Some time ago, the citizens of Jackson County denied the motion to pay for the construction/renovation of the existing stadium, which led Clark Hunt (Chiefs Chairman and CEO) to seek other options outside of KC. However, he might not have to anymore, as Lucas expressed his thoughts on the updated situation.

“I’m not going to be the one to talk about confidential negotiations, but the city of Kansas City, myself, I have been in meetings booked to put forward at least an offer of $400 million plus for one of our professional franchises to stay within the city,” said the Mayor in a conversation with KMBC9.

The speculation is that the Chiefs stadium might cost around $2 billion to build and the new KC Royals stadium might also require at least another $1.5 billion. This debt, as mentioned earlier, would be covered through sales taxes, revenues from sports betting, and the lottery. Per the report, roughly $71.5 million from gambling revenues will be directed towards paying the debt.

Surprisingly enough, the Chiefs and the Royals still haven’t promised to come to Kansas even if the bill becomes law, per the Kansas City Star. They are still treating the bill as an “option” as they make decisions about where to move after their lease at the Truman Sports Complex expires in 2031. Kansas City Chiefs boast of having big names like Patrick Mahomes and Travis Kelce. Only time will tell what decision the team will take.

Can Patrick Mahomes-led Chiefs pay the bondholders?

The Chiefs and Royals stadium marks the largest STAR bond project ever. Other STAR bond projects in Kansas City include the Kansas Speedway, which, per the Kansas City Star, has been the most successful use of the program, while other projects like Prairiefire in Overland Park failed to make payment of $15 million on time.

This also prompts the viability of the project because, per the column, stadiums are not usually the major drivers of economic growth. A 2022 empirical study pointed out that there are “little to no tangible impacts of sports teams and facilities on local economic activity.”

Another problem with the project is: What happens when the bondholders are not getting paid as a result of the stadium defaulting? That’s what Rep. Bob Lewis is concerned about.

However, Governor Laura Kelly was excited about the prospect of keeping Kansas City’s favorite sports teams where they are. “The bipartisan effort to invite the Chiefs and Royals to Kansas shows we’re all-in on keeping our beloved teams in the Kansas City metro,” Kelly said.

She further added, “Kansas now has the opportunity to become a professional sports powerhouse with the Chiefs and Royals potentially joining Sporting KC as major league attractions, all with robust, revenue-generating entertainment districts surrounding them providing new jobs, new visitors, and new revenues that boost the Kansas economy.”

There is a mixed bag of reactions to the bill that was almost instantly passed. Some are skeptical, and others are outright interested. The exact details of the proposal aren’t out yet, but some are sure that the proposal is a “gold mine for Kansas,” and a “once in a lifetime” opportunity. What do you think?