Royals, Chiefs Sign Letters Of Intent On Stadium Proposal

Jackson County (MO) Exec Katheryn Shields said that a new lease proposal for the Royals and Chiefs “calls for $575[M] worth of improvements” to Kauffman and Arrowhead stadiums, according to Mark Kind of the K.C. BUSINESS JOURNAL. The 25-year leases are “contingent on voter approval of a three-eights-cent sales tax for 25 years to pay for $425[M] of the improvements,” with the teams paying $100M. A January 16 deadline has been set on finalizing negotiations, but Shields said that the county and Jackson County Sports Complex Authority have “received letters of intent from both teams” (BIZJOURNALS,com, 12/22). In K.C., Smith & Spivak write county officials “would have liked Royals owner David Glass to contribute more but said it would be difficult under baseball’s current revenue structure.” Glass did increase his contribution from $20M to $25M. The Chiefs are contributing $75M. Smith & Spivak add “one of the surprises” in Thursday’s announcement was the commitment from state leaders to put $50M in tax credits toward the renovations, with $37.5M going to Arrowhead and the rest to Kauffman. There would be $325M in improvements made to Arrowhead and $250M to Kauffman. Chiefs Vice Chair Jack Steadman and Royals Senior VP/Business Operations Mark Gorris said that paying for cost overruns “was a key concession for the teams to make” (K.C. STAR, 12/23).

GIMME SHELTER: The NFL awarded K.C. a Super Bowl between 2012 and 2021 contingent upon a roof being put on Arrowhead Stadium, but a roof is not part of the lease agreement. In K.C., Randy Covitz reports when the Chiefs showed the NFL renderings of the plans, the cost of the roof was $100-200M, but the roof was dropped from the agreement because “architects could not provide a firm cost estimate.” However, Chiefs Owner Lamar Hunt “will continue to pursue” a roof. A clause in the agreement “provides that within the next year, the county will use its ‘best reasonable efforts to develop and pursue a financing plan for a rolling roof to service the Sports Complex.’” NFL VP/PR Greg Aiello said the recent developments “do not impact the league’s commitment on that Super Bowl” (K.C. STAR, 12/23).

REAX: In K.C., Joe Posnanski writes the cost of the proposals is “worth it. It’s true that $425[M] of public funds is a lot, but I can’t imagine that a less expensive plan will come along that can secure both teams for a quarter century” (K.C. STAR, 12/23). But a K.C. STAR editorial writes the teams “should supply more of their own funds for the upgrades. The suggested contributions from both teams are far below the averages for other stadium improvements around the country” (K.C. STAR, 12/23).

Current Renovation Proposal Does Not Mention Roof For Arrowhead