Oligarch Gets a Stadium, Workers get the Bill

Background

A few weeks ago it was announced that the Chief’s NFL team would be moving from its longtime home[1] in Kansas City, Missouri across the Mississippi River to Kansas City, Kansas (for those not from Kansas or Missouri, Kansas City is divided between the two states). This came after the State of Missouri had refused the demands of the team’s billionaire owner[2] to pay for a renovation of their 53 year old stadium to include more box seats and a covered field (the current capacity of 76,416 seats is actually more than the proposed stadiums expected 68,000 person capacity[3]).

While Kansas politicians of both sides of the aisle celebrate this as a win for Kansas and a jab at their longtime rivals in Missouri (a ridiculous rivalry that goes back to before the Civil War[4]), a look at the details of the deal show that it’s another example of taxpayer funds going to support the lives and businesses of the oligarch class.

One of the final papers I wrote while attending law school was an analysis of the way capitalism has perverted the idea of fair justice in this country to the extent that it serves the interests of the rich almost exclusively, especially in the realm of contract and property law (both of which are arguably the most important law in the U.S. [read: important to the ruling class]). In that paper, I made the claim that the “economic interests” so often cited as justification for things like Eminent Domain and other use of community resources were thinly veiled arguments for transfer of taxpayer money to the rich. Appropriately, I cited the taxpayer funding of stadiums as the most egregious example of such things.

The Deal Makers

The National Football League is one of the most profitable “non-profits” in the world[5], and the Hunt Family, the owners of the Chiefs, one of the richest football owners[6] in the NFL. All the while, the Hunts rank as the worst NFL owners to work for[7] in a league lousy with bad owners. Players cited the Hunt’s cheapness and unwillingness to invest in the team or facilities even after their recent Super Bowl victories[8]. All the while, the family is worth an estimated $25 billion, mostly from oil, with the team ownership shared among the four oldest descendants of the team founder, Lamar Hunt (each of the four has a 25% stake).

The NFL has a lot of problems, not the least of which it was specifically created in a way that limits input from the communities the teams implant themselves in, with rules against public ownership or shareholders (with one notable exception[9]). This allows the owners to unilaterally decide if and when they will move the teams, which in the past has even been done in the dead of night without notice to their previous homes local government[10]. Although the Chiefs have been based in the Missouri side of Kansas City since 1960, when they moved there from Dallas Texas (again by the use of a $102 million municipal bond to build them a stadium, rather than having one of the richest men in the world at the time fund his own vanity project[11]), where they were called the Dallas Texans. Since then, the Chiefs have developed arguably one of the most passionate and committed fan bases on organized sports even before they won a series of Super Bowls. Their stadium, Arrowhead, is also on record as the loudest in the league[12].

Governor Laura Kelly

Many people not from around here think Kansas is a fully Red State, but such ideas are just a demonstration of the ignorance of the fact that we’re in fact very purple and that there isn’t much difference between the parties here other than the amount of lip service they give to DEI initiatives and pronouns. While the Senate is darkly GOP, the governor is a darling of the Democratic Party who has made campaign speeches decrying “the Chinese Communist Party” even if she has vetoed bills aimed at stopping foreign purchase of Kansas land[13]. She allegedly has her site set on a run for national political office, which may explain her desire to appear to be business friendly (she has also arranged for a computer chip plant to be built in the KCK area, while stating that she did so because of the dangers of the “whims of the Chinese Communist Party”[14]).

The Kansas Legislative Council

“I feel like Kansas just won the Super Bowl”
Ty Masterson, Failed Businessman, Slimeball, & KS Senate Leader

The Kansas Legislative Council is the GOP counter to Governor Laura Kelly (D). As in the national government, they control the purse strings of the State, and the GOP control over the Kansas Legislature means that they can override any veto by the Governor.

The Deal

“The large and growing peer-reviewed economics literature on the economic impacts of stadiums, arenas, sports franchises, and sport mega-events has consistently found no substantial evidence of increased jobs, incomes, or tax revenues for a community associated with any of these things.”[15]

In one episode of the Simpsons, it was a joke that Tanzanian Presidents claimed to build stadiums as an indicator of their ability to create progress, the joke being that spending money on such things was the opposite of progress[16]. Now, we have politicians in the failed states of the U.S. doing the same thing at the cost of roads, social services, and local economies. These stadiums are obnoxious, unnecessary, and expensive, but they area also a way for politicians to appear to be doing something to bring attention to their areas by feeding off of the nationalistic-style pride people take in their local sports teams[17] (especially considering the name of the team at issue here).

While advocates claim otherwise (Kansas Governor Kelly announced “New stadium and mixed-use entertainment project is expected to create 20,000 jobs and generate more than $4 billion in economic impact for state”^[18]), consistent economic data demonstrates that building sports arenas does nothing to improve the economies where they are built. Here as elsewhere, the main argument for the proponents of the move claim that it will bring in out-of-state money to events and stimulate the economy, as well as bring in “1,000’s of jobs” to the area. All for the low investment of $1.8 billion raised without raising taxes (it will instead be diverted from present tax revenue using STAR Bonds[19], which promise to build such entertainment sites without negatively impacting taxes or the community).

One study interviewed economists from around the world and they were virtually unanimous in their view that taxpayer funded stadiums are a drain on the local economy[20], but it’s far too much to expect a regular sports fan to read through dry economic data when news outlets and politicians of both parties are telling them convincing lies (proponents in the Olathe Chamber of Commerce even claimed such things as “education and medical partnerships” and “new stadium for Olathe Public Schools”, which are mentioned nowhere in the deal itself[21]). It’s easy to appeal to Nationalism. That’s why it’s done so often.

Game Theory in Action

The habit of teams to move to more fertile areas in a nearly perfect example of Game Theory[22], or the study of decision making of in self-interested parties. Team owners have created a system in which cities compete for their favor by offering ever more lucrative deals for their franchise in order to draw them away from their competitor cities. In the past, teams have moved back and forth across the nation, even within a few years. Often leaving perfectly capable stadiums empty along the way[23] (some newer with even higher capacity than Arrowhead). In each case, the community is left holding the bag, with a giant building that costs millions to tear down and with parking lots equal several square miles of hot concrete. The corrupt process of appealing to wealthy team owners in not confined to the NFL, with such practices common in almost all of organized sports, such as the famous corruption around the International Olympic Committee selecting sites for their games[24].

What makes this so aggravating is that the groups playing these games should know better. Game Theory is studied at the business schools[25] so many of the politicians attend, and one would at least expect them to know the basic gist of the problems inherent in engaging in such games. But we are governed by morons at every level, who look for easy wins to prove their negotiation ability to the masses, even if it ultimately proves the opposite. They fall over themselves to appeal to attract the rich, just so they can get robbed by them.

Arrowhead Stadium & the Hunt Family

Arrowhead Stadium, located at the Truman Sports Complex along with Royals Baseball, is one of the oldest NFL stadiums still in use at nearly six decades, with a capacity of 76,416, making it the fourth largest stadium in the U.S. The ownership is officially the Sports Complex Authority of Jackson County, MO, but real control rests with the Hunt family, who were even able to sell naming rights to the field to GEHA (Government Employees Health Association, another so-called non-profit) in a deal that lasts from 2021 until the Hunt lease for the stadium is up in 2031. Notably, the stadium has a great fan following due to the length of time it has been in use and because it holds the world record for the world’s loudest arena[26].

This entire thing started because the Hunt family wanted to add a roof to their stadium to allow them to be considered for hosting the Super Bowl. However, just as far back as 2006, the voters of Jackson County approved $850 million in municipal bonds to renovate the stadium, but it was ultimately found that it wouldn’t be enough to place a roof over the field. Later, in 2007, the county paid $375 million for a tribute to the Chiefs founder, Lamar Hunt, as well as improved luxury boxes (in this case the Hunt family did contribute $50 million [of the $75 million they originally pledged], which seems fitting as many of the improvements served to celebrate their family[27].

The new arena the family wants built for them will reportedly have lower seat capacity than the current one, but include more luxury boxes and other amenities, the not least of which is a retractable roof. The new stadium is planned to be built in the “Legends” area of Kansas City, which is currently home to the Kansas Speedway, a large shopping area, and hotels.

They wanted Jackson County, MO, to again pay for these renovations. This time, the issue was set before a vote to the people, who rejected new tax by 58%^[28]. Missouri politicians did get approval for a bond measure that would have covered 50% of the cost of a new stadium, along with at least $50 million in funding, not counting the amounts raised locally[29]. However, this would have resulted in the Hunt family having to pay most of the rest of the money to build a stadium for their multimillion dollar franchise, which they apparently found unacceptable.

Location, Location, Location

One must think of all the houses, farms, and small businesses that have been bulldozed in order to build these stadiums and their expansive parking lots. Historically, they have been targeting lower income communities or those housing people of color, but at least this time the area planned for the stadium has already been turned into a capitalist paradise of big box stores and corporate restaurants[30].

Kansas City is already well known for wrecking communities in order to build highways and parking lots, which is not a surprise given that it’s relatively spread out through the foothills bordering the Mississippi River and placement as a transportation hub for the country (KC was once the destination for the cattle drives to get the beef on the trains to slaughterhouses in Chicago and St. Louis). Given this history, one wonders what suburb or how many homes will be condemned in order for this new stadium to be built, and what benefit those people will feel they receive.

It’s not only the stadium, but the expansion of the areas roads, sewage, and other utilities that are necessary to service the building that should draw concern. It means more money going to maintain those things which could be better served elsewhere for actual communities that are occupied more than weekends for a third of the year. They’re not just building a stadium, they’re building a small cities worth of parking and utilities for an empty building.

Jobs Galore!

One of the claims they make is that the stadium will bring in “thousands of jobs”. This is another claim that never materializes from these stadiums. The main jobs last for the duration of the construction (mostly going to the owners of the construction companies tasked with the project) and the lasting jobs are low paying and part time (other than the Chiefs office staff, most of the people working are running the food stands and other vendors and only during the games). Most of the time, the stadium sits empty with a minimal staff.

The Kansas politicians, including the Democrat Governor Kelly (D) and State Senate Majority Leader Ty Masterson (R), have all claimed that the deal they have negotiated does not include any new taxes for residents. A quick think on this claim, if true, means that tax money will have to be diverted away from present use to the construction of this stadium and its $1.8 billion price tag (updated to $4 billion total). Led by its regressive conservative legislature, Kansas is already hurting for money to pay its educators and basic services, and now tax money from a highly populated area will be used for a sports team[31]. The dealmakers promise that this will all be justified by the money that the team will bring to Kansas (as apparently moving the stadium 30 miles east solves all such problems). They are basing this claim on the usual arguments one hears, such as how the team will bring tourist dollars in and increased spending at games will produce income. The problem with this is apparent when one realizes that most the people who attend the games, and spend in that area, will be coming from in state or just across the border. In other words, there won’t be any new people coming as much as in-state fans spending money in a different area of the state. That isn’t new spending, that is just relocated spending, and it will not compare to the loss of services necessary for the stadiums construction anyway.

Star Bonds & Eminent Domain

“The burden [of eminent domain] falls disproportionately on those lacking the money, political power, and influence needed to rebuff attempted takings, with the ‘deck stacked against’ [local] property owners”^{^[32]}
U.S. Commission on Civil Rights

The plan is to use STAR bands to fund the construction. A STAR bond is a fancy roundabout way of using government money to advance the payment of a project based on the idea that the funds will be recovered later from the taxes received from the increased economic activity of that project. Basically, despite what the dealmakers promise, tax money will be used to build the stadium on the promise that it will bring in more tax revenue (but remember that “there will be no new taxes”).

The government is buying the bonds for the stadium using tax money, and then hoping that it will be made back in tax revenue. The problem is that stadiums never increase such revenue, and even the $7 million per year that the Hunt family and the Chiefs are to pay in rent will be placed in an account under their control for use on facility upkeep and other business expenses (it’s like you are paying rent to yourself to spend on the home you rent). As mentioned before, study after study proves that sports team provide no economic benefit, so these STAR bonds are junk from the get-go that the Kansas citizen will be on the hook for.

More damning is that the government will have to resort to eminent domain condemnations to create the space not only for the stadium, but the roads and services for that stadiums (and its parking lot). Of all cities, Kansas City is certainly not shy about using this power for the interests of the rich, as many vibrant communities have been razed to build roads and parks for the enjoyment of the wealthy[33].

Selling Out Kansas

As a kid, I was a Chiefs fan, because my family were Chiefs fans going back to the teams beginnings in Kansas City. I have been to no less than 10 games in Arrowhead Stadium, loudly screaming at the top of my lungs alongside my uncles and the other fans. The Chiefs played an important part of my family’s identity, made even more poignant after the death of my most beloved Uncle, a man who would go to games nearly nude in the cold weather but for the large Indian headdress he would wear[34]. As I grew older I grew out of such passions when I began to see the team pride as silly, even if I still enjoy the way it brings my family together. This whole thing makes my distaste for these franchises all the more extreme.

Most people aren’t able to afford taking time off and going to the games, and have to instead settle for watching from home, and that’s if they even care enough about the sport to do that much (I no certainly longer care). So the state, facing a looming budget shortfall by 2028, is going to spend $4 billion of its $27.08 billion budget on a stadium for a family worth $25 billion. This will require cutting the teaching budget and increasing police activity for the games, in addition to more costs to maintain the utilities of what amounts to an empty parking lot[35]. Our political representatives have done all of this without the barest voter input, which even considering the amount of Chiefs fans that may have been in support of it, could not justify the unilateral action taken.

None of this would be a problem if the Hunt Family, heirs to fantastic wealth, were forced to pay for their own ventures, and they would be forced to do so if we had politicians willing to stand up against such nonsense. But the politicians we elect are morons who believe the lies they’re told about the economic benefits of these plans, or are at least more given to believing those lies due to the amount of lobbying the oligarchs who say them perform. As Gov. Kelly and the rest of them celebrate the great deal making of giving the rich whatever they want, we’re once again stiffed into paying the bill.

I can barely conceive of a starker example of how Capitalism places the entertainment of the wealthy over the lives of the working class.