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January 25, 2006
Two, two, two votes in one!
Jackson County will have not one but two stadium-subsidy referenda to vote on come April 4: one a 0.375% sales-tax hike to raise $425 million for renovations to the Kansas City Chiefs and Royals stadiums, the other the imposition of a use tax on out-of-state business purchases to pay for a $200 million rolling roof that could be used to cover either stadium.
Meawhile, over at the "this story was not subject to the approval of Major League Baseball, no really, watch me talk while Bud Selig drinks this glass of water" MLB.com, the headline is all about the 30-cent-per-ticket tax the Royals have agreed to pay as part of the new lease deal. (The Chiefs would pay $1 per ticket.) Which is all very nice, as most economists agree that the bulk of ticket taxes ultimately come out of team owner's pockets, since it keeps them from raising tickets' face value quite as high as they would otherwise.
But let's be real here: Even if the Royals draw 3 million fans a year (unlikely), 30 cents a ticket would be $900,000 a year. Add in maybe $500,000 a year from the Chiefs, who sell fewer tickets thanks to a shorter schedule, and you've got enough to pay back a total of maybe $20 million of the expected $675 million in public costs. As drops in the bucket go, I've seen more impressive ones in the Sahara.
Those user fees don't go to payoff the bonds. They go into a Repair, Maintenance, Management and Operating Fund. Jackson County residents are not charged this fee so it less than the amount that is you are suggesting.
Posted by kcfan on January 25, 2006 08:55 PM
So the teams would be using ticket tax money to pay off their own stadium operations costs? You wonder why they're even bothering to call it a ticket tax - well, except they obviously think it'll look better to pretend the teams are "contributing" something. Meanwhile, if Jackson County residents don't pay the fees, I guess I better find some local friends to buy the tickets if I ever decide to go to a Royals game...
Posted by Neil on January 25, 2006 09:08 PM
Neil, I agree with you that the Royals are not
likely to draw at least three million fans in
2006. After years of mediocre play, they will
have to really turn it around if they are to have
a chance to draw that well again. If and when they
turn it around, I think their attendance will be
much better. Maybe after a really good season or
two. If not, I think their attendance will be
down for a while.
Neil, I agree with you that the Royals are not
likely to draw at least three million fans in
2006. After years of mediocre play, they will
have to really turn it around if they are to have
a chance to draw that well again. If and when they
turn it around, I think their attendance will be
much better. Maybe after a really good season or
two. If not, I think their attendance will be
down for a while.