The Kansas City Chiefs have drawn a hard financial line with Kansas lawmakers over their proposed $3 billion domed stadium. Their one condition is: the project only works if the public serves as the landlord. The franchise’s plan hinges on public ownership tied to sales tax revenue bonds, a structure now facing scrutiny at the state level and putting pressure on the Chiefs’ long-term future in Kansas.

“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,” Chiefs attorney Korb Maxwell said when questions were raised about why the stadium wasn’t privately owned, 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. Maxwell told legislators that the “fix” is the creation of a Kansas stadium authority, a public corporate body that would own the facility and lease it to the team, calling the structure standard for projects of this scale.

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. Maxwell also stressed that the incentive package would only move forward with additional legislative action, including formal authorization of a stadium authority and an extension of the STAR bond program, which is currently set to expire later this year.

“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 the Kansas City Business Journal. He added that the team expects the bonds to be paid off well before their 30-year maturity, citing internal revenue projections that estimate a 15-to-20-year payoff window.

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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. However, several lawmakers questioned whether future sales tax growth across a proposed incentive district, which could span all of Wyandotte County and parts of Johnson County, can reasonably be attributed to the Chiefs’ development alone, raising concerns about long-term opportunity costs.

But, 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 the first place.

Chiefs owner explains the rationale behind building a new stadium

In his statement, Hunt explained how this new project will significantly benefit the fans and the state of Kansas. The dome, Hunt said, is central to that vision, allowing the region to compete for events Arrowhead cannot host.

“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.”

Beyond the stadium itself, Kansas officials confirmed the broader proposal includes nearly $1 billion in additional STAR bonds to support a new practice facility and team headquarters in Olathe, along with mixed-use developments surrounding both sites. The planned issuance would be larger than all previous STAR bond projects in Kansas combined, a scale that has heightened legislative scrutiny.

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 lawmakers move forward with the required legislation, and how much public support the project ultimately garners, now stands as the defining question in what would be the largest economic development deal in state history.