Chiefs Threaten Kansas Exit Over $3 Billion Dispute as Clark Hunt & Ownership Demand a ‘Landlord’ for New Stadium

The future of the Kansas City Chiefs’ new home stadium is in jeopardy after a recent committee meeting involving Kansas lawmakers. The Chiefs announced plans for a new $3 billion domed stadium in December, where they proposed public ownership of the arena, as a significant percentage of the funding would be secured through sales tax revenue (STAR) bonds.

Hence, when questions were raised about why the stadium wasn’t privately owned, Chiefs attorney Korb Maxwell issued a statement confirming that, without public ownership, the proposal wouldn’t make sense for the franchise.

“If that (stadium) is not owned by a sports authority, if that is owned in private hands, then, if you would have $1.8 billion of STAR bonds come into that development, that would all be federally income taxed,” Maxwell said, as per the Kansas City Business Journal. “And so you would take, then, 45% of the dollars that came in and roughly ship that to Washington, D.C. … That would blow a huge hole in the budget for this project and, frankly, would not allow it to move forward.”

As explained by Korb Maxwell, private ownership would entail that the $1.8 billion in sales tax revenue (STAR) bonds could not be issued for the Chiefs’ stadium on a tax-exempt basis. This would lead to a massive hit on the franchise’s budget for the stadium and, hence, would push the Chiefs to move away from their proposed plan.

These questions about public ownership of the stadium stem from the possibility of what would happen if the Kansas City Chiefs, who will be taking care of the arena, decide to leave. Responding to these concerns, the Chiefs’ attorney reiterated the franchise’s long-term plans for the stadium.

“We’re absolutely doing this and planning this as the long, long-term home for the Kansas City Chiefs for (multiple) generations,” Maxwell said, as per theKansas City Business Journal.

With this statement, the Chiefs seem adamant about securing public ownership for their new stadium, as they believe this venture will be prosperous for the state of Kansas.

Chiefs owner explains the rationale behind building a new stadium

As plans for the new Kansas City Chiefs stadium were unveiled, team owner Clark Hunt shared why this decision to move from Arrowhead was taken. In his statement, Hunt explained how this new project will significantly benefit the fans and the state of Kansas.

“We made a decision as a family that this was the right opportunity and the best for the organization for several reasons,” Hunt said. “It’s about the fans. My dad [Lamar Hunt, who founded the franchise] was always about the fans and thinking about the future.”

“This will give Chiefs Kingdom a state-of-the-art facility for multiple generations, a building that can last for at least 50 or 60 years. We believe it’s the best thing for the region. It will give Kansas City the opportunity to bid on events that we can’t host right now, like the Super Bowl, the College Football Playoff, and the NCAA Final Fours.”

As the Chiefs navigate the complex financing structure for their proposed $3 billion domed stadium, the franchise’s commitment to public ownership appears non-negotiable due to federal tax implications. Whether Kansas lawmakers will approve the necessary STAR bonds remains to be seen, but the Hunt family has made clear its vision extends generations into the future.

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