KC officials debate how many billions of dollars is too many to give to Royals owner

The fallout continues from last week’s leak of a Jackson County document projecting that a new Kansas City Royals stadium could cost taxpayers an insane $6.4 billion counting future tax kickbacks and insurance costs. The county legislature met yesterday, and the takes were a-flying:

  • County legislator Manny Abarca, who has previously clashed with the county executive’s office that produced the report, went after county executive Frank White again, saying, “There’s literally a billion-dollar error in the spreadsheet, and so at that point, it throws out all the information, at least for my reliance on that as being truthful.” (KCTV, which quoted Abarca, didn’t clarify what error he meant; he first made the “billion-dollar error” allegation in a Twitter post last week but said “I cannot share the full details,” which is a bit convenient.) And county legislator Sean Smith added, “I am anxious to have the Royals come back to us with what I would really want to support on the ballot; right now, we are not there” — likewise, with no immediate explanation by the news station of what his ask is.
  • Local real estate attorney Tracey Steele said the county analysis’s projection of insurance rates rising by 10% a year “doesn’t pass the smell test for me.” County administrator Troy Schulte, who wrote the report, replied to FOX4, “It’s a lot of money whether it’s four billion or five billion or six billion, it doesn’t matter.”

Schulte’s statement simultaneously sounds a bit defensive — stand behind your numbers, man — and is also absolutely true: Whether it’s $6 billion or (my estimate using present-value numbers) closer to $1 billion, it’s a lot of money either way! One of the risks of going too high with claims of a stadium cost is you can end up only anchoring expectations, so that a mere billion dollars in public money sounds reasonable by comparison; I hope that’s not where we’re headed, but let’s not forget that just a year ago $1 billion was a number so high that Royals owner John Sherman wouldn’t say it out loud, and now it’s suddenly this.

Meanwhile, everybody and their sister is staking out a position on both the projections and what the county should be offering to Sherman, including Steele, who took time off from his insurance cost estimating duties to tell Fox5, “If I were face to face with Frank White, I would say, “Is it your position that you’re okay with the Royals leaving in 2031?’ Because that’s what going to happen if you tell them we’re cutting off the 3/8ths cent sales tax.” This is 1) not something Royals owner John Sherman has ever threatened, unless you mean “leaving” across the county line, 2) still eight years off, so even if you accept the argument, there’s no huge rush to throw money at the team rather than keep on haggling, and 3) not really the expertise of a real estate attorney, but I guess Fox5 had him standing there and needed a “pro” voice for balance.

Abarca said yesterday that he believed “a majority of my colleagues, at least that I’ve talked to,” want to “make sure that the taxpayers get the best deal they can possibly get, and we try to do everything we can to keep both the Royals and the Chiefs in Jackson County,” which is kind of a mixed message, especially coming from a guy who said about the $6 billion projection in last week’s tweet that “It’s almost like someone doesn’t want a deal to happen. 👀” 👀 indeed, 👀 all around.

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5 comments on “KC officials debate how many billions of dollars is too many to give to Royals owner

  1. Look – you have to understand, it’s not the 1960s anymore. Bobby Sherman can’t just sign on for a few more season of Shindig! and make this work.

    The people of Kansas* have to understand that this needs to get done. It doesn’t matter how it gets done or how much it costs. It is necessary (whatever it turns out to be).

    Do you really want to lose a second team to Oakland*? Because that could happen. We haven’t moved that one yet and we don’t want to. We will do anything to avoid moving franchises, as you know. But we might have to. You don’t know. We don’t know. But it’s possible it might happen. Unless something else happens. And things have to happen.

    But you’ll never get another team if you lose this one. I mean sure you’ve had two or three. Maybe more if we count other major leagues that we don’t count because we don’t think they are. And yes we are thinking about moving teams to cities smaller than Kansas City. But we would do anything to prevent teams moving. Even if they might ultimately have to move if things don’t happen.

    So you’ll never get a replacement team if you lose this one. Although obviously we are always open to expansion as we are all about free trade and being open for business. That’s America! And we love it more than anyone. Especially on July 4th. Or those military days that the military pays us to put on. Great all round. Just great. Teamwork People!

    So my recommendation to the people of Kansas* is this: Do what you have to do to save your team. It’s your very own and no-one else’s. So save it. Because you’ll never get another one unless someone wants an expansion franchise someday. And there are no guarantees. Except that there will be expansion. As soon as some things happen. Big Things!

    Remember: The current situation cannot continue as the situation. I’ve said it before. My predecessors have said it before. For decades. These situations cannot continue to be the situation. I have been completely up front about that.

    So my message to Kansanites* is to get this done for Ally Sherman!

    (*Editor’s Note: The Commissioner is a very busy commissioner and cannot be expected to be a world authority on Geography.)

    Anyway,

    1. Yep! The sales tax part, at least.

      https://fox4kc.com/sports/royals/chiefs-royals-stadium-sales-tax-vote-could-be-two-different-questions/

  2. Why does there have to be a choice? In fact, why does there have to be a limit at all?

    Aren’t the Royals and Chiefs the most important businesses of all in Kansas City?

    I mean, they already have their own special tax laws and have their showrooms/factories built for them by the public… so I would say there cannot possibly be any other business in KC that is anywhere close to as important as they are. Or those businesses would have their factories/showrooms/commercial buildings built for them too.

    Man can live without food or water. But not without subsidized professional sports.

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