(Arrowhead Stadium via the Kansas City Chiefs)
I wasn’t planning on writing today, but the Kansas City Chiefs’ new stadium deal is too big to pass up. After Missouri taxpayers voted no on a proposal that would have provided the Chiefs with hundreds of millions in public funding to renovate Arrowhead Stadium, the team is relocating a few miles across state lines to Kansas.
This is one of the largest stadium deals in NFL history, with a record amount of public funding, so I spent this morning reading through the entire 33-page term sheet.
Similar to the newsletter we published on the Washington Commanders’ new stadium deal, which revealed $1 lease payments, no taxes, and two complimentary luxury suites for the mayor, the Chiefs’ agreement with the state of Kansas is equally unique.
Here are 25 of the most interesting details I discovered:
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The Chiefs will receive $1.8 billion in public funding for a new $3 billion stadium in Kansas — the largest public subsidy ever for a U.S. sports stadium project.
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The Chiefs’ new stadium will have about 65,000 seats. That’s 10,000 fewer seats than Arrowhead Stadium, likely leading to more luxury suites and premium clubs.
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The state will own the stadium and then rent it back to the Chiefs. The Chiefs will be required to pay $7 million in rent during the first year, with rent payments escalating annually by the greater of 2% or the rate of inflation (CPI). However, the rent money doesn’t really go to the state, which I’ll explain in a second.
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The Chiefs must occupy the new stadium for 30 years. Once the initial term is complete, the Chiefs will have six 5-year options to renew their lease. If the Chiefs exercise all renewal options, the potential occupancy term is 60 years.
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The Chiefs will retain 100% of revenue from stadium operations (tickets, concessions, parking, suite sales), naming rights and sponsorships, personal seat license sales, mixed-use development operations, and team headquarters and practice facility operations. The government has the contractual right to veto any naming rights or sponsorship deal, but only if it falls within specific categories, such as tobacco, vaping, adult entertainment, firearms, or political entities.
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The state will receive one complimentary suite within the stadium. If that suite becomes unavailable due to circumstances beyond the Chiefs’ control (e.g., the World Cup or Super Bowl), the team must provide the state with a comparable suite. The state will cover all food and beverage expenses inside its suite.
