In a bid to prevent the Kansas City Chiefs and the Kansas City Royals from relocating to new stadiums in Kansas, Missouri Governor Mike Parson announced on Thursday that the state intends to formulate an aid plan by the end of this year. This decision comes in response to Kansas' recent approval of a financial plan that would cover up to 70% of the costs for constructing new stadiums for the professional football and baseball teams.

While displaying the Chiefs' two most recent Super Bowl trophies at the Capitol, Governor Parson expressed his determination to secure the best possible business deal. He acknowledged the efforts made by Kansas, empathizing with their strategy, but emphasized that Missouri would maintain a competitive stance.

For over five decades, the Chiefs and Royals have played in side-by-side stadiums situated in eastern Kansas City, attracting fans from both states in the divided metropolitan area. Currently, their stadium leases extend until 2031. However, Royals owner John Sherman has stated that after the 2030 season, the team will not continue playing at Kauffman Stadium and instead prefers a new downtown stadium.

Concerns about the future of these teams intensified after Jackson County, Missouri, voters rejected a sales tax proposal in April. The tax, which aimed to finance a new downtown ballpark district for the Royals and an extensive renovation of the Chiefs' Arrowhead Stadium costing over $2 billion and $800 million respectively, faced opposition from various groups. Some Royals fans favored the existing site, while others disagreed with the tax, and some were dissatisfied with the revised stadium plans, announced shortly before the vote.

With the emergence of Kansas as an alternative location, pressure mounted on Missouri officials. This situation mirrors a common trend among professional sports teams, as they often leverage one site against another to secure generous public subsidies for constructing or improving stadiums.

In the current era, sports teams are pushing for new stadium construction across the United States, seeking not only repairs but also additional revenues derived from luxury suites, dining establishments, shopping facilities, and other developments surrounding the stadiums. Just this week, the city of Jacksonville, Florida, approved a $1.25 billion stadium renovation plan for the NFL's Jaguars, with costs divided evenly between the city and the team.

Economists have expressed their skepticism regarding the economic impact of stadiums, arguing that while they may boost tax revenue in the immediate vicinity, they often divert consumer spending away from other forms of entertainment and fail to generate sufficient new economic activity to offset the public subsidies provided.

Governor Parson acknowledged the significant economic value of the Kansas City Chiefs and Royals, comparing them to large corporations that have previously received public assistance, such as Boeing, Ford, and General Motors. However, he emphasized that any deal must be mutually beneficial for the taxpayers of Missouri and ensure a positive outcome. Governor Parson expects that a plan will be proposed for the stadiums before the end of this year.

Although Missouri's plan has yet to be defined, its implementation would likely require legislative approval. Nevertheless, Governor Parson does not anticipate calling a special legislative session before his term concludes in January. Therefore, any plan formulated by the Parson administration, in collaboration with Kansas City area officials, will need the support of the incoming governor and newly elected legislators.

Kansas has already enacted a financing law, enabling discussions between the sports teams and the Kansas Department of Commerce to commence at any time. However, according to spokesperson Patrick Lowry, the agency has not established a specific timeline for reaching an agreement.

Missouri remains determined to retain the Chiefs and Royals within their borders, and as negotiations unfold, both states are poised for a battle to secure their future in the hearts of football and baseball fans alike.