Professional sports franchises are one of the most lucrative businesses in America. On average, NFL teams earned $137 million in earnings before interest, taxes, depreciation and amortization (EBITDA) last year.So do most baseball teams, including the Royals. bring in tens of millions of dollars in profits per year.
Unlike other businesses, which are far less profitable, sports franchises have long resorted to poverty, trying to trick city leaders and voters into using up their tax dollars and building new stadiums to play in. To support these pleas, the franchise made the dubious premise that increased economic activity around the stadium would generate enough business to offset the hundreds of millions of dollars taken from taxpayers.
Many the study have It is shown That these promises are actually lies There is no evidence that sports teams generate additional revenue.Jeez It’s more than what would exist otherwise, and it’s certainly not as much as the amount that would generally be forcibly collected from taxpayers. The biggest beneficiaries of this funding so far have been billionaire team owners, who typically include the value of a new stadium in their team’s valuation and value the team’s value when it is sold or as collateral for a loan. will improve. Similarly, it’s a lie that it’s impossible for teams to finance their own stadiums. Wrigley Field and Dodger Stadium are two of the oldest stadiums in sports and were built with private funding. The Phoenix Coyotes, who by all accounts make far less money than both Kansas City teams, announced this week that they will build a new stadium entirely with private funds.
There are signs that the public is aware of this fraud. In sports-starved Tennessee, the Titans have approached voters, saying they will leave unless the state and city chip in about $1 billion to build a new stadium, even though their current stadium is only a quarter of the size. made a veiled threat. A century ago.According to poll results, Tennessee Voters overwhelmingly opposed the planDespite this, both the state legislature and the City Council ignored the dissatisfaction of voters and approved the plan outright anyway.Voter anger over voting Mainly led to the selection of Freddie O’Connellas the mayor of Nashville, was the most vocal opponent of the stadium.
Unlike voters in Tennessee, voters in Kansas City were recently given a direct say on whether to mandate payments for billionaire business facilities, and they spoke louder than ever. Kansas City Mayor Quinton Lucas and most of the city’s leadership support extending the 3/8 cent sales tax measure to help pay for the Royals’ new stadium and major renovations to the hugely popular Chiefs’ stadium. However, voters were not impressed. Measures end in defeat.
The billionaire owners reacted to this development with familiar restraint, threatening to take the ball and go home. Or at least somewhere else. Royals owner John Sherman made his wife do the heavy lifting. Post those threats on Facebookaccused Jackson County, Missouri, of a “failure of leadership” and said the greater Kansas City area would be lucky if the team could cross the state line into Kansas.
Kansas City Democratic Mayor Quinton Lucas Shown in posts by X Not to worry, city leadership is clearly committed to using tax dollars to keep a team in Kansas City.
Lucas stuck to his belief that voters were not rejecting taxes being levied to pay for wealthy corporations’ equipment costs, but rather the lack of proper planning, saying, “Dallas “I’ve heard rumors, including from the mayor. Please don’t believe them.” ”
Where the team goes next is an open question. The Chiefs and Royals worked together on the failed proposal, but have separately turned to trying to collect more taxes from voters and finding cities willing to ignore economic realities in hopes of attracting professional sports teams. There is a possibility that
as As far as Lucas is concernedBut “the people of Kansas City and Jackson County love the Chiefs and Royals. I look forward to working with the Chiefs and Royals to create a stronger, more open and collaborative process that will keep our teams safe.” We’re looking forward to that.” Events and investments that will remain in Kansas City for generations to come. ”
