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Corporate Welfare & Subsidies

Royals Officially Probably Staying in Jackson County

By Patrick Ishmael Filed January 12, 2024 Source Show-Me Institute

With loyalty like this, who needs wins? After flirting for a new stadium with suitors like Clay County and even (reportedly) Kansas, the cellar-dwelling Kansas City Royals appear ready to settle down. Congratulations Jackson County! It looks like the Royals will probably stay with you—if you pay them for the next half century, location TBD:

The Kansas City Royals and Kansas City Chiefs released a joint statement Friday to stay in Jackson County, pending voters' approval of a sales tax extension.

The statement comes amid the Royals' plans to build a new $2 billion ballpark district as they look at locations in both Jackson County and Clay County.

The teams said Friday they are committed to staying in Jackson County — and provid[ing] over $200 million in economic benefits — if voters approve a 40-year extension of the 3/8th-cent sales tax in April.

The sales tax extension will help the Chiefs renovate Arrowhead Stadium at the Truman Sports Complex and assist with the Royals' new stadium in downtown Kansas City.

It wasn't news that the Chiefs planned to stay put. Driven in part by the Royals' public relations disaster, the Chiefs had confirmed months ago they indeed intend to remain at Arrowhead (despite flirting with Kansas two years ago), and it was clear the football team was only waiting on the baseball team to make its decision. The Chiefs' involvement at this juncture also puts a more popular brand in front. Frankly, the baseball team is probably better off with Chiefs superstar and Royals co-owner Patrick Mahomes leading the final charge to the ballot box rather than majority owner John Sherman, who's helmed the Royals' push to this point. I'm sure Sherman would agree.

Will taxpayers accept this rose? It won't come for free. Now that the Royals have decided on Jackson County as their first choice, it will now (likely) be up to voters to decide in April whether to continue subsidizing not one, but two sports teams into 2071—that is, nearly to the 22nd century. Where will that baseball stadium be? Unlikely at its current site, where the taxpayer-financed and recently upgraded Kauffman Stadium seems destined for the wrecking ball. At least two new Jackson County sites are in contention, and a final site announcement may be weeks or months away, if it comes before the vote at all. In the meantime, we wait.

In the interest of balance, I will say that the Royals' behavior—though misguided and wrongheaded—is consistent with the behavior of countless other private businesses, in and outside the professional sports industry, when it comes to tax incentives and public financial support. The Royals want something for free, regardless of whether they're owed it. That's their prerogative, and it's up to taxpayers to finally say, "No, our tax dollars should go to legitimate public services and not to a private entertainment operation."

But odds are that Jackson County taxpayers won't say no—they'll likely approve the tax extension for the Royals' (and Chiefs') benefit, even as other notable local challenges, like murder, remain unaddressed. Taxpayers can do better. I hope they do.

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