Royals say Kansas provides “a path for us to explore” in stadium discussions

The Royals will look at crossing the state line.

The Kansas Legislature is expected to convene next week for a special session to work on a tax cut bill but lawmakers are also expected to consider changes to the STAR bonds program to attract major sports teams to the state, namely the Chiefs and Royals. According to Royals Vice President of Communications Sam Mellinger, the state provides another option in their quest for a new ballpark.

As we’ve said since April 2, we must evaluate all options that may be available to us with respect to the new stadium. The Royals need a place to play baseball in the near future and the recent STAR Bond discussions in Kansas provide a path for us to explore.

STAR (Sales Tax and Revenue) bonds are an economic development tool to finance major projects, using the revenues generated by the project to repay the bonds. STAR bonds were used to finance the Kansas Speedway, Children’s Mercy Park, and the Legends shopping district, which transformed Kansas City, Kansas.

Kansas lawmakers are considering changes that would allow STAR bonds to cover 75 percent of a project’s cost rather than 50 percent, and amend the minimum investment required by applicants. The Royals have added lobbyists in Kansas in anticipation of the session.

STAR bond programs have been accused of not meeting expectations for some projects like the Topeka Heartland Motorsports Park and the Prairiefire project in Overland Park, and for depriving local governments of tax revenues. One study found 13 of 16 STAR bonds projects have not met expectations, although a potential Chiefs or Royals stadium might prove to be much more unique with more revenues than other projects.

Much of the talk from Kansas officials has been in regards to the Chiefs, rather than the Royals. Kansas state Senator J.R. Claeys says the bonds would fund $1.5 billion of the $2 billion development plan for a new Chiefs stadium. No location has yet been determined, although many speculate a stadium would be near the Legends project at I-435 and I-70.

Some Missouri lawmakers have pleaded with Governor Mike Parson to call a special session to provide a counteroffer to the teams, but Parson has been non-committal so far. He has previously indicated support for keeping the teams, saying “we are going to do everything we can to keep the Royals and the Kansas City Chiefs in the state of Missouri.” Parson is term-limited this year, and many gubernatorial candidates have campaigned against offering incentives to keep the teams.

Moving to Kansas could allow the teams to take advantage of sports gambling, which the state legalized in 2022. Teams like the Guardians and Mets have set up sportsbooks in their stadiums. Kansas set up a fund to allocate gambling revenue to attract sports teams, but due to loopholes, the fund only projects to have $10 million by 2025, and may even be falling short of those projections.

In April, Jackson County voters rejected a proposal to extend the 3/8 cent sales tax currently used to pay for Truman Sports Complex renovations for another 40 years to pay for a new downtown stadium for the Royals and renovations to Arrowhead Stadium. The Royals were seeking a $1 billion downtown ballpark with a surrounding district that was to be privately financed for another $1 billion.