The Kansas City Chiefs are officially heading across the state line. After decades at Arrowhead Stadium in Missouri, the franchise has reached a landmark agreement with Kansas leaders to build a new domed stadium and related development anchored in Wyandotte County and Johnson County. The deal, announced Dec. 22, 2025, is one of the largest public-private sports investments in U.S. history—and it has major implications for taxpayers on both sides of the Kansas City metro.
Below is a plain-English explainer of what’s included, how the financing works, what Kansas taxpayers are paying, where the projects will be built, what this means for the Kansas City Royals, and what Missouri and Kansas City, Missouri, are likely to do next.
What the new project includes—and where
The agreement outlines a roughly $4.5 billion total development built in two primary locations:
- Wyandotte County (Kansas City, Kansas):
A $3 billion domed NFL stadium and surrounding entertainment district, expected to be located near the Legends/Village West area and the Kansas Speedway. The dome allows Kansas City to host Super Bowls, Final Fours, concerts, and year-round events. The stadium is required to be operational by Aug. 1, 2031, in time for the 2031 NFL season. - Johnson County (Olathe):
A new Chiefs headquarters and practice facility, estimated at $300 million, along with additional mixed-use development. - Ancillary development statewide:
An additional $1.5 billion in mixed-use projects—restaurants, hotels, retail, offices, and entertainment—spread across Wyandotte County, Johnson County, and elsewhere in Kansas, built in phases beginning by the end of 2028.
How the funding works: the 60/40 split
At the core of the deal is a 60% public / 40% private financing structure:
- Public share (up to 60%)
Kansas will cover as much as $2.7 billion of the total cost through Sales Tax and Revenue (STAR) bonds and other state-authorized funding tools. - Private share (at least 40%)
The Chiefs will fund the remaining portion—roughly $1.8 billion—and assume cost overruns beyond the 60% cap.
Kansas officials emphasize that no new statewide taxes are being created for the deal.
What taxpayers actually pay—and don’t pay
STAR bonds are the primary funding mechanism. Instead of raising taxes, the bonds are repaid using sales tax revenue generated by the new stadium and surrounding development.
Key points for taxpayers:
- Sales taxes generated inside the STAR bond district—from tickets, hotels, restaurants, retail, and entertainment—are redirected to repay construction debt.
- The state has committed to deposit up to $1.8 billion into construction funds within 90 days of signing final construction contracts.
- The Chiefs will pay starting rent of $7 million per year, increasing annually by inflation or 2%, whichever is greater.
- A maintenance fund (minimum $17 million annually) will cover long-term upkeep, reducing the risk of future taxpayer bailouts.
- A Community Impact Fund guarantees at least $3 million per year, with at least half spent in Kansas communities outside the metro area.
Critics note that STAR bonds divert tax revenue that would otherwise flow to state and local governments, while supporters argue the taxes wouldn’t exist without the project in the first place.
Why Kansas could pull this off
Kansas’ advantage came down to speed, unity, and tools Missouri doesn’t have in one place:
- One negotiating partner:
Kansas presented a single statewide deal. In Missouri, the Chiefs were negotiating simultaneously with the state, Jackson County, and Kansas City, Missouri. - Aggressive use of STAR bonds:
Kansas has a long track record with STAR bonds, using them to build Kansas Speedway and Sporting Kansas City’s stadium. - Sports betting revenue:
Kansas dedicated a large share of its Attracting Professional Sports to Kansas Fund, fueled by sports-betting taxes, to back the bonds. - Certainty and deadlines:
Kansas lawmakers approved the incentives before the end-of-year deadline, while Missouri efforts stalled amid voter fatigue after Jackson County rejected a sales-tax extension in 2024.
As Laura Kelly put it, Kansas leaders framed the move as a once-in-a-generation economic development opportunity rather than a traditional “border war” play.
What this means for Missouri and Kansas City, Missouri
Missouri officials and Quinton Lucas have expressed disappointment but left the door open if the Kansas deal were to fall apart. Still, the Chiefs have signed an exclusivity agreement preventing them from negotiating with other states during final talks.
What’s next for Missouri:
- Arrowhead Stadium’s future:
Missouri leaders are expected to pivot toward renovation and reuse planning for Arrowhead and the broader Truman Sports Complex. - Royals remain undecided:
The Royals were not part of the Kansas deal and continue to evaluate stadium options on both sides of the state line. Missouri lawmakers earlier approved incentives to help renovate Arrowhead and assist with a new Royals stadium, but no final location has been chosen. - Economic reset:
Local leaders will need to determine how to redevelop the Truman Sports Complex area and retain jobs tied to game-day operations once the Chiefs depart.
The bottom line
Kansas is betting that a domed NFL stadium and surrounding development will generate billions in new economic activity, tens of thousands of construction jobs, and global visibility for the state. The Chiefs are securing a next-generation, weather-proof stadium designed to last for decades.
For taxpayers, the debate will continue: whether redirecting future sales taxes is a smart investment—or a costly gamble. What’s clear is that the Kansas City metro’s sports landscape is changing permanently, with ripple effects for Missouri, Kansas, and professional sports financing nationwide.