WICHITA, Kan. (KWCH) – A year after Kansas lawmakers passed an incentive package to lure the Kansas City Chiefs and Royals to build stadiums in Kansas, neither has announced a decision.
Kansas passed an extension of its offer for one year, which would expire in June 2026. Kansas would finance up to 70% of a new stadium for both teams using STAR Bonds. Missouri’s offer would cover half of a new stadium, plus provide an option for local municipalities to contribute financing, such as Jackson County.
Geoffrey Propheter studies the financing of sports stadiums through public dollars and is a professor at the University of Colorado. He doesn’t believe Kansas can afford to pay off the debt tied to its incentives.
“That pool of money is not trivial, is it enough money to pay for the STAR Bonds–no,” Prophetter said.
STAR Bonds are paid back to bondholders by the sales tax from a particular geographic area. Prophetter believes there wouldn’t be enough new money entering the state to pay off the bonds. Instead, Kansans would shift their spending from other businesses to the stadium.
For it to work, Kansas would need a large number of people from other states to spend money in the state.
Kansas Senator Ty Masterson from Andover said the STAR Bond will put all of the risk on the bondholders. In a statement, he said, “The STAR Bond legislation is structured to protect Kansas taxpayers as the risk lies solely with the bondholders, not the public.”
The STAR Bond process begins when the state sells bonds to investors, generating the cash needed to finance a development project. To repay those bonds, the state designates a special sales tax district, typically around the project site. The sales tax revenue generated within that district is then used to pay off the bonds over time.
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