How could a sales tax vote in Jackson County cause the Kansas City Chiefs to relocate?

For just over six decades, the Chiefs have called Kansas City home. With that in mind, one could be forgiven for thinking that that’s the way it will always be. Yet, there may be trouble brewing between the franchise and the city in which it plays. Hard to believe, but true.

Could the Chiefs leave Kansas City?

While there is nothing set in stone or even close to probable, what reports have recently indicated is that should an upcoming sales tax vote end in a manner that the Chiefs don’t like, we could see the team looking for greener pastures. Speaking during a recent interview in Kansas City, Chiefs president Mark Donovan was asked what the team’s plan might be going forward if the sales tax fails, and surprisingly, Donovan didn’t shy away from the idea that the team could look to relocate. “I think they would have to include leaving Kansas City,” Donovan said about possible options that the team could explore should the vote fail.

Of course, the Chiefs’ executive was also quick to state that the organization would prefer to stay in the city that it has operated in for the last 61 years. “Our goal here is, we want to stay here. And we’re willing to accept a deal for the county to actually stay here,” Donovan said.

So, what’s up with the Chiefs and this sales tax?

Context as always is key. If you didn’t know, the Chiefs recently announced plans for an $800 million renovation at Arrowhead Stadium. As one can imagine, such a venture would see significant upgrades to everything from parking and tailgating, but also improved video and telecommunications as well as luxury amenities for players and fans alike. Indeed, part of the plan involves a 360-degree concourse that would allow fans to finally navigate the entire stadium when sitting on the upper deck. There has also been talk of a new club area in the end zone.

Now, where finance is concerned, it’s understood that the Chiefs are planning to put up $300 million. Where the remaining $500 million is concerned, the plan is to take it from the extension of a three-eighth of a cent sales tax that will be voted on in Jackson County on April 2nd. To be clear, the sales tax has already been implemented and runs through to 2031. Should voters approve the extension, it would remain in place until 2064. To that end, the Chiefs have indicated that assuming the extension is approved, they will sign a 25-year lease at Arrowhead, which would also include a team option for three five-year extensions. To be clear, the current lease expires in 2031 i.e., if even the vote does not pass, the Chiefs won’t be leaving for another seven years. That said, one has to believe it would cause a lot of noise.

As for the facts, Chiefs chairman and CEO Clark Hunt has already been frank in his comments by saying the team the team definitely WON’T be signing a new lease if the tax isn’t extended. “We would not be willing to sign a lease for another 25 years without the financing to properly renovate and reimagine the stadium,” Hunt said in late February. “So the financing puzzle is very important to us to make sure we have enough funds to do everything we’ve outlined.” Interestingly, this is not an issue that is limited to just the Chiefs. The Kansas City Royals will almost certainly be keeping an eye on the vote as well with departure from the city a possibility if the vote doesn’t end favorably. “I think we’re in grave danger of losing one or both teams,” Jackson County Legislator Manny Abarca said recently. Ultimately, while there are many moving parts to this, it would be wise to keep an eye on the April 2nd vote in Jackson County.