Kansas is leveraging its burgeoning sports activities betting income to entice Kansas Metropolis sports activities groups to relocate throughout the state border. Gov. Laura Kelly just lately signed HB 2001 into regulation, paving the way in which for Gross sales Tax and Income (STAR) Bonds to fund as much as 70% of latest stadium building prices. This strategic transfer goals to safe new venues for skilled sports activities groups, enhancing Kansas’ financial panorama.
Legislative approval and monetary technique:
Throughout a swift legislative session, Kansas lawmakers overwhelmingly accepted HB 2001, endorsing using STAR Bonds to finance stadium developments. The invoice handed 84-38 within the Home and 27-8 within the Senate, with implementation slated for July 1. This laws marks a proactive method by Kansas to draw main sports activities franchises, doubtlessly together with the Kansas Metropolis Chiefs and Kansas Metropolis Royals.
Governor Laura Kelly emphasised the financial advantages of modernizing Kansas’ financial improvement instruments. In an announcement, she highlighted, “‘By modifying the STAR Bonds program, one among our strongest financial improvement mechanisms, lawmakers crafted a viable possibility for attracting skilled sports activities groups to Kansas.’”
Key to the funding technique is the allocation of income streams from sports activities betting, state lottery gross sales, and new gross sales and alcohol taxes generated inside designated leisure districts surrounding the proposed stadiums. These funds will contribute to paying off bonds over a 30-year interval, aligning with Kansas’ financing norms for STAR Bonds.
Whereas the laws doesn’t specify the Kansas Metropolis Chiefs or Kansas Metropolis Royals by title, it focuses on facilitating stadium initiatives for NFL or MLB groups adjoining to Kansas. Estimates recommend potential prices exceeding $2 billion for the Chiefs’ stadium and $1.5 billion for the Royals’, as reported by the Kansas Metropolis Star. This initiative underscores Kansas’ dedication to turning into a hub for main sports activities franchises.
Institution of the Attracting Skilled Sports activities to Kansas Fund:
The groundwork for this initiative was laid in the course of the legalization of sports activities betting in 2022, which additionally established the Attracting Skilled Sports activities to Kansas Fund. This fund earmarks 80% of sports activities betting tax income for attracting sports activities groups, following allocations to different state funds as per legislative priorities.
Since its inception, Kansas has collected $16.6 million in tax income from sports activities betting as of September 2022. The Attracting Skilled Sports activities to Kansas Fund acquired $3.3 million in Fiscal 12 months 2023 and $4 million in Fiscal 12 months 2024, reflecting the rising monetary assets accessible for stadium improvement initiatives.
In distinction, efforts throughout the border in Missouri confronted setbacks earlier this 12 months when voters rejected gross sales tax proposals geared toward funding stadium renovations and relocations for the Chiefs and Royals. This choice has prompted Kansas Metropolis, Missouri Mayor Quinton Lucas to arrange aggressive affords to retain the groups.
Regardless of Missouri’s challenges, officers from the Chiefs and Royals have expressed openness to contemplating Kansas’ proposals, citing favorable leverage situations. As Authorized Sports activities Report publishes, citing the Kansas Metropolis Star, Mayor Lucas acknowledged the aggressive panorama, stating, “‘As we speak was largely, for my part, about leverage. And the groups are in an distinctive leverage place.’”
