Friday roundup: Vegas stadium board approves Raiders cash after “fastest meeting in the history of $75m giveaways”

Welcome to the end of another programming week, one that was way busier than you’d expect for the dregs of summer. Let’s get through the rest of the week’s news and get you out of here for the long weekend:

  • Also eager to get out of town for the long weekend, apparently: The Las Vegas Stadium Authority, which voted unanimously Wednesday to give $75 million from a “waterfall” reserve fund of hotel tax money to the Raiders, to be used mostly toward a $158 million upgrade of an entry plaza. The authority took this action after just two public comments and none from the authority board members themselves, in what local podcaster Dayvid Figler called “the fastest meeting in the history of $75 million giveaways.” Board chair Steve Hill presented the plan as in response to the “need to keep driving all those great results that Jeremy presented,” referring to Jeremy Aguero, the paid sports team consultant and hotel management degree holder who for some reason gets to do all the economic analyses of sports projects in Nevada. (Hill, of course, is an unregistered sports team lobbyist too, Las Vegas is truly a growth coalition at its finest.)
  • The Kansas City council put off a rezoning vote for a new Royals stadium district again, because they want to wait first to get all the city’s mega-TIF districts finalized first. The council could have waited to figure out how it’s going to pay for its $1.1 billion share of the project before approving the money, but there was democracy afoot, had to nip that in the bud.
  • The Royals deal is still facing not only a potential April public vote — plus a likely lawsuit over whether the city can move ahead regardless of the results since it already approved the Royals deal — but a lawsuit charging that the state money being used for the project was passed illegally; the Missouri state supreme court is currently mulling whether that suit can move forward.
  • Chicago Bears officials are finally getting around to asking fans if they would still buy tickets if the team moved to Indiana, and are they taking the opportunity to sell fans on a “surrounded by restaurants, entertainment, and green space, creating a true gameday destination” with “one of the most robust gameday tailgating environments in the NFL”? You bet they are!
  • New Tampa Bay Rays owner Patrick Zalupski says his new $2.3 billion stadium, built with the aid of $2 billion in public money, will enable him to move the team’s payroll into the top 10 to 15 in MLB, after years at the bottom. That’s never really happened before with past MLB stadiums — there are some lovely charts showing this in J.C. Bradbury’s new book, wait for it — but there’s a first time for everything.
  • Speaking of Bradbury, he has a nice article over at The Conversation analyzing why we’re seeing so many new NFL stadiums being built with public money right now when economists and taxpayers alike think they’re a bad idea. Tl;dr: It’s the leases, stupid (and the stupid leases).
  • The NHL’s attempts to pit Houston and Austin against each other to compete for a expansion franchise have at least started to pay off, with Houston Mayor John Whitmire saying this week that “We’ll definitely be a better location than Austin” and “If you talk to the sports franchises in town, I think they’d tell you we’re great partners.” Still no word on what kind of money Houston (or Austin) might offer toward a new hockey arena, but you know that’s what Gary Bettman is waiting to hear.

 

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New Angels owner plans $2.5B Anaheim stadium, according to nobody at all, apparently

Following Tuesday’s announcement of the sale of controlling interest in the Los Angeles Angels to multi-sport team owner Stan Kroenke, Forbes baseball writer Barry Bloom wrote this:

Kroenke intends to build a new $2.5 billion ballpark to replace aging and decaying Angel Stadium, which opened in 1966 and has been refurbished at least twice.

Bloom gave no source at all for this information, which was rapidly repeated across the journotweetosphere. But then, just a few hours later, that sentence disappeared from Bloom’s article entirely; the Wayback Machine was down yesterday so there’s no record there of the original version, but Angels Substack newsletter Beyond the Halo got a screengrab:

Weirdly, there’s no notice on the Forbes site that the article has been revised. (There’s also no correction of Bloom’s spelling of “empresario,” but that’s another issue.) And Bloom’s X posts are still up insisting that Kroenke is building this phantom stadium “in Anaheim” and is “not going to renovate again” because Angel Stadium “has infrastructure problems and needs to be replaced,” again all without citing any sources.

Presumably this, let’s be generous and call it “information,” is all coming from somewhere, whether that’s Kroenke henchmonkeys or somewhere else. (Bloom has a long track record as an access journalist, so much of his reporting needs to be treated as somewhere unknowable on the spectrum between unverified fact and planted PR slop.) The bigger question now becomes: Who wants us to believe that Kroenke has a $2.5 billion Anaheim stadium up his sleeve, and why are they trying to disseminate that information via Forbes — and what changed over several hours yesterday that Forbes had to take down the claim?

As with any handwavy stadium proclamation, there are tons of additional questions, starting with “Who’s going to pay the alleged $2.5 billion?” and “Is Kroenke going to make another go at getting development rights to the city-owned Big A parking lots, state law requiring affordable housing to be prioritized there be damned?” Kroenke, thanks to marrying a Walmart heiress, is rich enough to buy and sell Croesus before breakfast, so he can certainly afford to pay for a stadium himself, as he did for the Los Angeles Rams; he also almost certainly won’t want to if he can find a way to get some public money to help defray his costs. The Athletic reported on Tuesday that Anaheim Mayor Ashleigh Aitken said she’s “very hopeful that [Kroenke is] going to want to work with the city to come up with a really innovative development plan that would benefit the residents,” which doesn’t really tell us much of anything, but at least it’s a statement with a name attached that hasn’t been memory holed in the last two days, that’s a start, more actual reporting to follow, one hopes.

UPDATE: Bloom speaks!

I’m sorry for any confusion on this. The paragraph was removed because a spokesperson for Kroenke said the company was not ready to move forward on a new ballpark at this time, but might in the future. That has now been so noted in the third graph of the column for full transparency.

The new note on the article now reads:

09/03/2026 Information about building a new ballpark was removed from this story on Wednesday because a spokesperson for Kroenke said the Angels were not ready to move forward on the project at this time, but might in the future.

Bloom didn’t indicate, in either his X post or the article note, who told him that Kroenke intended to build not just a stadium, but a $2.5 billion stadium in Anaheim, if a Kroenke spokesperson said it wasn’t the case. Curiouser and curiouser…

AND MORE UPDATE: “I stand by my source who’s highly grounded in MLB and never gives me bad info. So I fully expect Kroenke to build a new ballpark in the Anaheim area,” writes Bloom in a followup X post. So this is supposedly someone well placed who knows Kroenke’s plans even though Kroenke denies them, but Bloom can’t tell us who it is, so we just have to trust that everyone here is being honest and not trying to spin things for their own reasons. This is typically the kind of thing that requires writers to confirm with multiple sources before publishing, but maybe Forbes has different standards (and X clearly does).

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D-backs exec calls lease talks “non-productive,” “draconian,” would like his $600m check already

Arizona Diamondbacks stadium renovation talks appear to be at a standstill again, with team CEO Derrick Hall telling Axios that lease talks with Maricopa County have been “non-productive to date” and that “we need language that is not draconian in nature and reflects the spirit of that legislation without renegotiating it.”

The legislation in question is last year’s bill providing $500 million in state sales and income tax money for renovating the D-backs stadium, though the total could end up being more than $600 million once future increases are taken into account. That was all contingent on the team signing a new lease, something very little has been reported on over the ensuing 14 months; according to the Axios bulletisticle, sticking points include that team owner Ken Kendrick meets state procurement rules and guarantees that he’ll put in $250 million of his own money that he’s promised, which Hall now seems to be characterizing as trying to renegotiate the deal rather than trying to fill in everything that wasn’t decided at the time.

Either way, Kendrick has 600 million reasons to want to get a lease done, and Hall didn’t make any threats about what would happen if the stalemate continues, something he’s never hesitated to do in the past. So this should get hashed out eventually, unless

I wouldn't be surprised if the D-Backs are seeing what the Rays and Royals are getting for new ballparks, and switch to seeking more money for a replacement rather than a renovation.

J.C. Bradbury (@jcbradbury.com) 2026-09-02T12:45:48.530Z

Jeez, J.C., don’t give them any ideas! Though if Kendrick really did tear up his current deal and try for a new, bigger one, that might give Arizona elected officials the chance to get out of their $600 million obligation, maybe? Admittedly, it never seems to work out that way, but there’s a first time for everything.

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What does $4B Angels sale mean for team’s stadium future, MLB expansion plans? Some investimagations

Los Angeles Angels owner Arte Moreno announced yesterday that he is selling the team to Los Angeles Rams/Denver Nuggets/Colorado Avalanche owner Stan Kroenke, and most of the news coverage has — rightly — focused on Moreno not letting the door hit him in the butt on the way out. Moreno, a billionaire billboard baron, bought the Angels in 2003 from Disney for $180 million, and since then has: angered locals by changing the name of the team from the Anaheim Angels to the Los Angeles Angels of Anaheim to try to appeal to more fans from the populous city to the north; squandered the presence of the best player of his generation by surrounding him with every overpriced, washed-up free agent he could find; tried to obtain $500 million worth of city land around his stadium for only $150 million, and almost getting away with it until the whole thing blew up in an FBI bribery investigation; and declaring that fans don’t care about winning after conducting a survey that didn’t include “winning” as one of the choices, among other lowlights. By this season, fans were openly chanting “Sell the team!” at home games, and it was apparently enough for Moreno to cash in his chips and sell to the Walmart-heir-by-marriage up the road at a huge profit.

Even as fans exulted in Moreno’s departure, some expressed concern about what a new owner — one who already broke the Rams’ lease in St. Louis so he could move them back to L.A. (The Athletic terms this a “proven track record” in stadium development, which is certainly one way of looking at it) — might mean for the Angels’ future. The team’s lease expires in 2032, though ownership has a series of one-year options that could extend it to 2038. And that juicy stadium parking lot land is still sitting there, though complicated by the fact that the state’s Surplus Land Act requires public property to be considered first for affordable housing before it can be devoted to other uses, something the city of Anaheim already paid a $96 million fine for ignoring once.

In addition, just last week, California Gov. Gavin Newsom signed into law the Home Run for Anaheim Act, which requires the team to revert to being called the Anaheim Angels in any future lease negotiation or land sale agreement (CORRECTION: Only if the team first gets an exemption from the Surplus Land Act), which may or may not matter depending on whether Kroenke shares Moreno’s obsession with the L.A. name. The 79-year-old Kroenke inherits a stadium situation that is ripe for either opportunity or extortion, depending on how you look at it, and his track record for playing hardball in such matters should encourage Anaheim officials to sleep with one eye open, at least.

The other potential fallout from the sale involves the price tag: We don’t know how big a stake the “controlling interest” is that Kroenke is buying from Moreno, but we do know that it values the entire franchise at a new-MLB-record $4 billion. Coming on the heels of the San Diego Padres‘ sale for a $3.9 billion valuation, this is a sign that there are still plenty of billionaires willing to shell out top dollar for MLB franchises. That’s likely to whet league owners’ appetite for cashing in by creating two expansion teams; even if the available open markets are underwhelming and adding teams would just dilute existing owners’ shares of national TV contracts, it’s got to be tough to pass up a cut of what could be a pair of $4 billion or more checks. With the Athletics and Tampa Bay Rays stadium situations now seemingly settled — though we’ve said that before — the next step may be setting up a bidding war among the Portlands and Nashvilles and Salt Lake Citys of the world, to see if any wants to pay enough toward a new stadium to help an expansion owner afford that multibillion-dollar expansion fee. All the kids are doing it!

 

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County officials cite AI, “The Giving Tree” as reasons for approving Rays’ $2B stadium subsidy

The Hillsborough County Commission voted 5-2 on Friday to approve a new Tampa Bay Rays stadium development on the current campus of Hillsborough College, making the team’s long-running saga all over but the postmortems. (If you want those, you can choose from among Forbes, the Tampa Bay Times, and Florida Politics, only one of which name-checks “Obi-Wan Kenobi’s message to the surviving Jedi after Order 66.”) There are still a bunch of details to be worked out, including how exactly the property tax diversions will work and what kind of community benefits package will be provided, as well as what the team’s lease with look like — all the kinds of things you’d normally want to have down on paper before holding your final approval votes. But the general shape of the deal remains the same, meaning Rays owner Patrick Zalupski will be receiving at least $2 billion in public money, tax breaks, and land, by virtue of a friendly face in the governor’s mansion (for the next few months, at least) and a city councilmember who either doesn’t understand how taxes work or doesn’t care so long as he can make “I saved the Rays!” part of his current mayoral campaign.

The end of the county commission hearing, meanwhile, got super-weird as county officials gave their closing statements about why they were approving the Rays deal, which will cost county voters far more (about $1.3 billion counting tax breaks if I’m doing the property tax split right) than the city (a bit over $600 million counting tax breaks). First up was commission chair Ken Hagan, who has been stumping for a Tampa stadium for the Rays essentially forever, yet who apparently had to resort to some very 2026 methods to justify this deal:

By creating this sports hub — if AI is correct — we’ll be only the sixth city that has co-located their facilities, along with L.A., Seattle, Philadelphia, Detroit, and Kansas City. And I’ll give you one better than that: If AI is also correct, this will be the first development project in the country, that has an entire college integrated with a ballpark and its catalytic development. AI said this development is a historic exception to the standard model.

Yep, that’s right: It appears that the central player in getting $2 billion in public subsidies provided to the Rays’ billionaire owner outsourced his “this one will be different” reasoning to ChatGPT. I often say that not much has changed in the stadium game since the 1990s other than the number of zeroes after the dollar signs, but the reboots always come with a few new twists.

And then there was commissioner Chris Boles, who said first he used the calculator that doesn’t work to find out if the revised deal was better than the previous one:

We talked about AI earlier. Apparently Ken uses it to look at stats. But I used it as a data tool to look at the questions I had versus the document, stuck the two together, and about 90% of the things that I asked for were integrated in there.

This, apparently, is what the future holds for civic policy decisions: Elected officials will only be given a couple of days to puzzle through lengthy and incomplete documents dropped in their laps last minute before a vote, but it’ll be okay because we’ll have robots to read them for us.

And then, even more puzzlingly, Boles cited his daughter’s bedtime reading choices as a factor in his decision:

I have a 12-year-old daughter, when she was very young, I used to read her this book called “The Giving Tree.” If anyone has a child, you know what that book is about: You have a seed, and you let it grow, and it gives back over time, and it does all these things. And in a way, this park is like the Giving Tree.

You apparently didn’t read the book very carefully, because that is not at all how “The Giving Tree” goes: The boy protagonist doesn’t plant the seed that turns into the tree, he just shows up, finds the tree in the first, eats its apples, climbs its trunk, ultimately cuts it down, and then as an old man sits on its stump — “and the tree was happy.” That’s a very different metaphor, one that even inspired an alternate version called “The Tree Who Set Healthy Boundaries”; maybe when future elected officials are asking AI what books to read to their kids in advance of billion-dollar spending decisions, that’s the version they’ll get recommended, but somehow I’m not holding my breath.

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Friday roundup: Tampa council approves plan to give $2B in public money to Rays stadium, says it’s not really public money

The Tampa city council spent all day meeting yesterday about the Tampa Bay Rays stadium deal, but honestly they could have saved time and just voted first thing in the morning. Public speakers were split in their opinions — public speakers are always split — and as for councilmembers themselves, there was little actual discussion for most of the day, with elected officials mostly talking past each other, knowing that everyone’s vote was already decided going in. The only reason you drop a half-finished bill on legislators’ desks less than a week before the vote is to avoid robust public debate, waiting till you know you have a slim majority then calling a snap vote while you know you have a W. The final vote was 4-3 in favor, same as had been since councilmember Bill Carlson used the leverage of his being a swing vote to win effectively no concessions whatsoever while patting himself on the back for doing so.

(WUSF claimed that the swing vote was councilmember Naya Young, but she’d already voted yes to the deal the first time it came up for a vote, leaving open the question of whether the NPR station doesn’t know what a swing vote is or just can’t remember as far back as March. The Tampa Bay Times, meanwhile, parroted Carlson’s line that Rays owner Patrick Zalupski will “cover” $100 million that previously would have come from city property taxes, even though Zalupski’s loan will still be repaid with city property taxes. This has not been a banner week for Tampa area journalism.)

The closest the council came to open debate was at the tail end of the meeting, whcn councilmembers took turns giving statements. I didn’t listen to all of it, but did hear councilmember Luis Viera claim that two-thirds of the stadium is being privately paid for because it’s “revenues from the project” — notwithstanding that it’s tax revenues that anyone other than Zalupski would be paying to the city treasury if they built such a project, but that instead will be kicked back to pay for the stadium costs; if that’s your criterion, everyone should get to write their yearly IRS checks to themselves, on that grounds that it’s tax money that “wouldn’t exist” without them. Councilmember Lynn Hurtak countered that the deal — what we know of it so far, given the many documents that remain unresolved — would put Tampa taxpayers on the hook for an unknown amount of future upgrade costs and called on councilmembers to “show we’re the smart city”; Carlson and council chair Alan Clendenin (yep, this guy) then mansplained at her to read the stadium funding agreement, something she’d already made plainly clear she had done, in detail.

There’s still a Hillsborough County Commission vote today, and while anything can happen, the council was universally seen as the higher hurdle here. For now, Tampa elected officials just voted to approve at least $180 million in future city property tax money plus $400 million or so in future city property tax breaks plus unknown amounts of future property tax kickbacks for additional upgrades, plus $1.5 billion or more in county and state subsidies, all to build a stadium for a billionaire team owner with no other offers on the table from other cities, after hardly any debate and before all the documents have been finalized. If there’s any upside, it’s that the interminable Rays stadium saga appears to be nearing an end, at least for the next couple of decades until the team’s lease at the new place gets close to running out; the cost is only the most expensive taxpayer stadium subsidy in MLB history.

Will other cities be the smart city? Let’s see how stadium and arena matters are going elsewhere:

  • Kansas City Mayor Quinton Lucas’s explanation for spending an extra $7 million a year on bond payments for a Royals stadium is that it’s not just to get around a public vote, it’s also that the more expensive bonds would be easier for the city to default on. With a sales pitch like that, the city may end up having to offer an even higher interest rate than 5.725% to get anyone to buy their stadium bonds.
  • The Beacon News, meanwhile, says that even though Royals owner John Sherman will only be putting up $55 million for a community benefits agreement against $600 million in city funding, that’s fair because tithing one-tenth of your income to private charity is a Christian tradition. That’s not even true, but it wouldn’t make any more sense if it were, just let it go, it’s been a bad week for journalism all around.
  • NFL commissioner Roger Goodell said he has talked to some Illinois legislators about getting a Chicago Bears stadium done in that state. “We want to make sure that Arlington Heights and Illinois have an opportunity, as well as Indiana, to put their best foot forward,” said Goodell, presumably because “The bidding is now open!” would sound too crass.
  • The Alpharetta City Council approved zoning changes that could lead to an NHL arena in Atlanta’s far northern suburbs, if Atlanta’s far northern suburbs got an NHL team, which nobody is predicting will actually happen.
  • There could be a bidding war for the Oakland Arena between arena management titans Legends Global and Oak View Group, though both parties appear to be offering roughly the same amount of money (roughly $100 million), instead competing on which company can provide better “long-term stewardship” for the venue.
  • Sports teams are really expensive when you’re bidding against billionaires, film at 11.
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Fact-checking Tampa councilmember’s “busting myths” video about the Rays stadium proposal

With the Tampa city council set to vote today on its share of $2 billion–plus in subsidies for a $2.36 billion Tampa Bay Rays stadium, councilmember Lynn Hurtak has posted a video “busting myths about the Rays stadium proposal.” Let’s see what she came up with:

“I’m a huge baseball fan.”

When she and her husband got married, they skipped a honeymoon so they could use the money on Rays season tickets insteadTRUE.

“Actual peer-reviewed studies by real economists show no tangible impacts of new stadiums on local economic activity. It’s basically the one thing all economists, from Marxists to the Chicago school, agree upon.”

The video includes a screenshot from a February 2026 J.C. Bradbury and Brad Humphreys paper titled “Yes, There is an Economic Consensus That Professional Sports Facilities are Inadvisable Public Investments,” but the same thing was also found by a meta-study of more than 130 studies of sports venue impact by Bradbury, Humphreys, and Dennis Coates, as well as a survey of economists and another survey of economists and talking to economists when they get together to swap papers about sports. TRUE.

“Economist Allen Sanderson said you generate more economic activity by throwing a billion dollars out of a helicopter.”

Sanderson actually didn’t put a price tag on how much money you’d have to throw out of a helicopter to generate more economic activity than building a stadium, but given that he said this as early as 1997 with regard to a Minnesota Twins stadium at a time when stadiums cost a lot less than a billion dollars, he probably would have accepted tossing even fewer moneybags. TRUE ENOUGH.

“Money that could be spent in or around the stadium is money that is currently being spent doing something else in the area.”

Probably not all of stadium spending is cannibalized by spending elsewhere in the area, depending on how you define “area”: In Bradbury’s studies of the new Atlanta Braves stadium in Cobb County recounted in his new book, he found that around one-third of the spending in and around Truist Park was reallocated from elsewhere in the county. And that didn’t include spending reallocated from the rest of the Atlanta metro area, or the state of Georgia as a whole — the larger a circle you draw around an attraction, the more entertainment dollars are just being shuffled around within it. So while Hillsborough County will likely steal some economic activity from Pinellas County if the Rays move across the bay, it’ll still be Florida spending replacing other Florida spending, which isn’t a net plus for Florida taxpayers. MOSTLY TRUE.

“The new stadium has a negligible effect on total tourism numbers.”

Hurtak notes that even the Rays selling out every game would be a drop in the bucket compared to existing Tampa tourism numbers, but there’s an even better case for this argument: Studies of what happens when spring training is canceled because of strikes and lockouts have found that there’s no measurable negative impact on Florida tourismIF ANYTHING, UNDERSTATING THE MYTH.

“Lots of stadium projects over the past few decades have been mixed-use, and none of them have paid back the taxpayers.”

I can’t confirm “none of them” without a lot more research than I have time for this morning, but there are certainly tons of examples of mixed-use projects that have been seas of red ink for taxpayers. In fact, some of the stadium projects that promise to be the costliest for the public are mixed-use developments, if only because the scale of the subsidies is even larger when team owners receive tax and land breaks on the non-stadium portions as well — as would be the case for the Rays stadium complex in Tampa. PRETTY DARN TRUE.

“A loan is when you give someone money and they promise to pay it back. The Rays have not committed to paying anything back. The current proposal is no different from the previous one, other than that the money being committed from your tax dollars is coming from a different bucket — the same bucket that we currently use to pay for renovating fire stations, fixing police cars, and paving roads.”

Yup. I hadn’t actually realized that Rays stadium proponents were arguing that the city spending $80 million toward a stadium and paying it off by siphoning off property tax revenues was a “loan,” but if so that’s completely bonkers — even Oscar Madison could tell you thatEXTREMELY TRUE.

“Even if you live in Tampa, the majority of your property taxes go to the county, which is poised to spend almost $700 million on this.”

Yup yup. (I actually have it as slightly over $700 million in county money, but it’s possible the county price tag has come down slightly in the latest iteration of the deal.) TRUE.

“The contract puts Tampa taxpayers on the hook for a blank check to pay for any additional costs of stadium renovations and repairs in the future.”

The proposed stadium development and funding agreement isn’t all that clear about how the “waterfall fund” of additional tax moneys to be used for future upgrades would work, and in fact pushes off a lot of the details around this to a future TIF district agreement that hasn’t been negotiated yet, but GENERALLY TRUE.

As a (sometime) professional fact-checker, my overall rating of Hurtak’s six-minute video report is: MORE ACCURATE THAN MOST NEWS ARTICLES BEFORE THEY GO TO A FACT CHECKER. The problems with handing over $2 billion in tax dollars in order to get the Rays to play home games in one part of Tampa Bay rather than another should be self-evident at this point, but if you want proof, Hurtak’s research checks out. Or you could be like councilmember Bill Carlson and declare that he knows “the best economists in the world” and the ones who are against stadiums are probably just “politically biased”; I’d love to fact-check those statements, but Carlson refuses to answer questions about any of his voluminous tweets on the subject, so we’ll have to settle for hopefully watching Hurtak ask him at today’s council hearing, which kicks off at 9 a.m. [EDIT: the Rays agenda item actually starts at 10 a.m., sounds like] and will be viewable online here.

 

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KC to spend extra $7m a year on paying off Royals bonds just to avoid public vote

The Beacon ran a long article late last week about the Kansas City Royals stadium proposal that includes a bunch of worthwhile analysis of the deal, including why using taxes from in and around the stadium isn’t really the project “paying for itself.” (“Some ballgame attendees might be going to a Crown Center restaurant instead of a Waldo restaurant that day. That shift in economic activity within Kansas City is a net neutral from a tax revenue perspective.”) But the most interesting part is buried many paragraphs down, in a discussion of the type of bonds the city plans to use to borrow $600 million for stadium costs and why:

Kansas City intends to issue these Royals bonds as “special obligation bonds,” as opposed to revenue bonds or general obligation bonds. That means that the city is essentially promising to pay back a certain amount of money every year…

If the city wanted to get a lower interest rate, it would have needed to take the stadium proposal to a public vote — either for a sales tax as Jackson County did or for general obligation bonds, using property taxes.

The going interest rate for K.C.’s special obligation bonds, reports the Beacon, is 5.725%, compared to 4.25% for general obligation bonds. Applied to a $600 million loan, this means that Kansas City is going to be spending about $7 million a year extra on stadium bond payments in order to avoid a public vote. That’s money that, if it were used to finance other city spending, could cover about $117 million in different public needs, if the city had gone the voter-approval route for the Royals project. But you can’t put a price on not letting the people vote, or rather you can, and that price is $117 million.

In other evading-democracy news, meanwhile, Mayor Quinton Lucas’s rush to get a Royals deal down on paper before anyone could try to force a public vote seems to have run afoul of another small matter: the residents of a 33-story apartment building adjacent to the stadium site who say the project would be infringe on their property rights, and who are now suing to block part of it.

According to the lawsuit filed Monday in the Jackson County Circuit Court, the [San Francisco Tower] condominium’s association is seeking a temporary restraining order and an injunction against three defendants — the city of Kansas City, the Royals and Crown Center — for protections over its longtime easements and property rights.

Some of the property rights include:

  • An approximate 0.835-acre central mechanical plant and maintenance shop;
  • A transformer and primary switchgear rooms;
  • Utility tunnels, including a 24-foot-wide tunnel under Grand Boulevard;
  • A pedestrian bridge;
  • A 400-space parking garage
  • A passage over San Francisco Garden.

The association states that plans for 68-acre ballpark district show the tower surrounded, as well as the stadium approximately 100 feet from the condo’s entrance.

All this building infrastructure is on Crown Center property, but the condo association says it has easements in place guaranteeing it the right to use the property for this stuff. The residents say they’ve been trying to negotiate with Royals execs, the Crown Center, and the city since May, to no avail, and so are seeking a restraining order and injunctions against the part of the project that would infringe on their rights, though they’re not seeking to stop the project overall.

This is all pretty embarrassing for Mayor Quinton Lucas not to have addressed sooner, but then, crossing all his t’s in a timely fashion doesn’t really seem like one of his core strengths. Lucas said yesterday that he “will support all parties in reaching an amicable resolution whether through the Court’s declaration of rights outside the stadium footprint, as sought here, or through alternative dispute resolution.” No word yet on whether an injunction might have any impact on the inevitable lawsuit over whether a public ballot measure will be ruled to come too late to overturn the stadium plan, assuming voters give it a thumbs-down; governance is too important to be left to the masses, which is why we instead leave it to bond financiers and city lawyers, apparently.

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Royals mega-TIF could see Missouri taxpayers covering John Sherman’s entire $1.9B stadium tab

Also on Friday, the Kansas City TIF Commission issued its Downtown Stadium TIF Plan, spelling out in a bit more detail — though still far from complete detail — what public money will be going to a new Royals stadium if and when it gets final approval following the city council’s yes vote on Thursday. Having to dig through two separate financial documents in one day seems like it should be an OSHA violation; fortunately, veteran K.C. journalist Dave Helling has done a lot of the summing up already on his Substack, so we can use that as a jumping-off point.

  • Before we get to Helling’s analysis, one technical point: Though the funding plan is described throughout as “tax increment financing,” it’s not a traditional TIF plan, which involves redirecting increased property taxes from in and around a development to help pay the developer’s costs. Since the Royals stadium will already be publicly owned and thus owe no property taxes, what Kansas City is instead looking at is diverting city sales, income, hotel, food and beverage, and other taxes from in and around the stadium district — making this a STIF (sales tax increment financing), or really a mega-TIF.
  • The stadium will cost $2,051,249,065 to build, of which Royals owner John Sherman will provide $911,249,065. This leaves precisely $1.14 billion for the city and state to cover; it was thoughtful of Sherman not to force taxpayers to have to dig around for exact change.
  • As discussed last week, the city will spend $90 million on infrastructure, with no specific funding source spelled out. Another $510 million will come from city mega-TIF tax money, a proposed 1% sales tax hike in a “community improvement district” of undetermined size — though as Helling calculates, all these combined are projected to “yield about $12.7 million annually, not nearly enough to cover yearly payments on a $510 million dollar debt.” (KCTV reports that an additional $128 million would come from raiding other city revenues, including restaurant taxes, gaming revenues, and parking revenues.)
  • The state of Missouri will provide $254 million from the Show Me Sports Investment Act — an amount equal to all state tax revenue already being paid by the Royals — $50 million in tax credits, $35 million in “infrastructure contributions,” and $100 million in transportation spending.
  • That leaves $101 million unaccounted for, which is listed in the TIF Commission spreadsheet as being from “other public sources.” As Helling writes, this “could be Missouri — the state already provides Jackson County $3 million a year for the Truman Complex; perhaps that’s part of where the money is coming from. Or it could be from Jackson County. Or some combination. Or not. It isn’t clear.”
  • None of this counts: property tax breaks, which as previously noted could add half a billion dollars or more to the city’s cost [UPDATE: Geoffrey Propheter projects $325-375 million]; or the steeply discounted rent (just $1 a year) that Sherman would pay; or the cost of giving up all stadium revenues to the city’s billionaire tenant, including naming rights for a building that he wouldn’t own.
  • Helling also mentions “undefined ‘redirections’ of $710.3 million from the ‘stadium impact area’ and another $259.5 million in ‘city funds,’ defined as the restaurant and gaming tax, on-street parking revenues, and revenue from ‘ancillary’ development.” Given that this is only mentioned in a chart showing “downtown stadium revenue projections, I think this isn’t additional public spending, but rather an attempt to make the taxpayer tab look better on the balance sheet by saying, “But the city will get to keep all the money we make from parking meters!” But, like Helling, I’m not 100% confident of anything here.
  • Unlike in Tampa, there’s no “waterfall” fund; the TIF district dissolves once the stadium is paid off. Unless the city decides to extend it, obviously, which is a thing that tends to happen once team owners start sniffing around for additional upgrades down the line.
  • Like the proposed stadium in Tampa, this one could be intentionally on the small side: the minimum number of actual seats is 30,000, with additional standing room. That could come as an unpleasant surprise to Royals fans, who turned out at an average of more than 30,000 a game as recently as 2016, and who have crossed that mark at three home games this year despite a last-place team. Expect higher prices at a new Royals stadium than at 38,000-capacity Kauffman Stadium, especially for big games or when the team doesn’t suck.

With all that in mind, it seems fair to conclude that the total public cost of the Royals deal is much likely to be closer to $2 billion than the reported $1.14 billion — making the $1.9 billion stadium effectively a free gift to Sherman. And, much like the Chiefs deal across state lines in Kansas, it’s a cost that K.C. and Missouri taxpayers can never hope to recoup just from whatever additional spending results from moving the Royals from one part of town to another. This race for most taxpayer-soaking MLB stadium deal to date is going to go down to the wire.

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Latest Rays stadium plan includes “waterfall” fund that could drive public cost past $2B

The revised Tampa Bay Rays stadium plan paperwork was released on Friday afternoon, in a classic Friday news dump. The idea behind these is to dominate the discourse just as everyone goes home for the weekend, so that by the time Monday rolls around — in this case, with a city council vote looming on Thursday — it will be too late for anyone to muster significant analysis of 173 pages of extremely convoluted legal language.

With that said, let’s dive in to the documents — a stadium development and funding agreement, a nonrelocation agreement, and a guaranty — and see where things stand.

  • As expected, the main update is councilmember Bill Carlson’s replace-one-city-tax-pool-with-another switcheroo, with $180 million in spending coming entirely from property taxes instead of a mix of property taxes and sales taxes. Though it’s not spelled out in the documents, $100 million of this is being described as a “private placement” of bonds by the Rays — which is true in that the Rays would be selling the bonds, but not in that they would get to pay it off with their own city property tax payments on the surrounding development. So as discussed last week, it still amounts to the same $180 million total city cost, the Casino Night Fallacy notwithstanding.
  • Or maybe more: The funding agreement doesn’t actually specify the exact amount of redirected city property taxes, instead kicking that can down the road to an Increment Interlocal Agreement to be decided by a future City TIF Ordinance, to be passed by December. And it does spell out a “waterfall” account to use excess TIF moneys to pay for future bond costs and “capital repairs, renewals, and replacements of Overall Public Infrastructure Improvements and/or Capital Maintenance and Repairs of Public Project Improvements within the District” — in other words, if there’s additional property tax proceeds after paying off the first $180 million, it can be used for additional future expenses. Total city public cost, then, is TBD, but setting aside future tax receipts for upgrade costs can add up quickly; in the Atlanta Falcons deal, a similar waterfall fund meant that an official $200 million public cost has ballooned to about $700 million.
  • Reporter Shadow of the Stadium notes on X that “🚨Public subsidies go way past $1B,” which is accurate but nothing new: The original plan included $976 million in city and county cash, $839 million in forgone property taxes and parcel fees on the stadium, and at least $250 million worth of free state land, so this was always a $2 billion–plus subsidy. (The total stadium construction cost, meanwhile, now stands at $2.36 billion, according to the latest documents, meaning public cash and tax breaks will cover at least 85% of  Rays owner Patrick Zalupski’s stadium costs.) The waterfall fund could make it even more spendy, though — Shadow calls it a “bottomless” subsidy, and as written at present, that appears to be correct.
  • There is a “first-class stadium facility” clause, but this appears to only require the city and county to build a first-class stadium, not to maintain it as first class. If so, it couldn’t serve as a state-of-the-art out clause that Zalupski could use to demand more money before his lease is up, so that’s a positive, or at least not an additional negative.
  • On the subject of that lease, the team is reporting that it would agree to pay $4 million a year in rent as part of the new plan, which would trim about $60 million off the public’s expense. However, this figure appears nowhere in the new set of documents, so it’s tough to say if it would come with any hidden catches.
  • Nothing to do with funding, but Zalupski has the option to make this the lowest-capacity MLB stadium in existence: Only a minimum of “28,000 fixed spectator seats” is required, with another 2,000 standing room tickets. This would be even fewer seats than the Athletics‘ 33,000-seat stadium under construction in Las Vegas, and the smallest purpose-built MLB stadium since Sportsman’s Park in St. Louis in 1920, looks like. This may be fine for a team that hasn’t averaged 30,000 in attendance since their inaugural season, but it’s also in line with modern strategies for boosting ticket prices via artificial scarcity.

Would this be worse for taxpayers than the Kansas City Royals stadium plan announced last week? It’s tough to say, as there are so many unknowns remaining in both cases. But either would be the most expensive MLB stadium subsidy in history; if they both pass, all that’s left to determine is who’s #1 and who’s #1a.

Tampa stands to be undeniably #1 in one particular form of self-own, though:

At a news conference Friday afternoon, Tampa City Council member Alan Clendenin unbuttoned his dress shirt to reveal a Rays jersey customized with his name.

“I just can’t understate how big this is,” said Clendenin, appearing alongside Tampa Mayor Jane Castor. “We are a major-league city with major-league sports.”

With Carlson on board as a swing vote, it certainly looks like this enormous bigness will pass the Tampa council on Thursday, leaving its fate in the hands of the county commission, which already voted 5-2 to approve a similar deal in May. We could be looking at the first $2 billion MLB stadium subsidy, and somehow it’s going to be for the Tampa Bay Rays — guess Stu Sternberg wasn’t so dumb to turn down a $1 billion offer from St. Petersburg after all, even if it took selling the team to a more politically connected owner to get the extra billion.

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