Stadium Subsidies: Not Just for the Big Leagues Anymore

Corporate Welfare |
By Patrick Tuohey | Read Time 3 minutes minutes

Show-Me Institute analysts have opposed spending taxpayer money on sports stadiums in Kansas City, Saint Louis, or anywhere. These subsidies are usually targeted for major league teams that are privately owned and wildly profitable. But in a cautionary tale for Missouri, across the border in cash-strapped Kansas, the Unified Government of Wyandotte County and Kansas City, Kansas (UG) is spending taxpayer dollars to prop up a failing semi-professional baseball team, the T-Bones, in a struggling independent league.

According to the Wyandotte Daily, the T-Bones aren’t faring well lately.

Jon Stephens, UG interim director of economic development, said the direct and indirect economic impact of the T-Bones is $4.2 million a year. However, attendance at the T-Bones games has declined in recent years.

“We view it as an integral part of the Village West development, as part of the No. 1 tourist attraction in the state of Kansas,” Stephens said.

Stephens’ remarks are odd. The team is seen as integral and successful by government officials, but apparently not by sports fans, whose attendance is declining—down 25% since 2010. Also, the team has failed to pay its utility bills and owes $314,000 for electricity and water. Jeff Bryant, vice president of the Board of Public Utilities, which denied the T-Bones’ request to simply waive $172,000 of their utility bill debt, testified against the UG action:

“We enjoy the baseball game,” he said. “Like any other business, it needs to stand on its own.”

He doubted if the UG would help out many other businesses that may be having trouble.

The new agreement shows the UG is paying 55 percent of the utility bill. “The UG is not paying 55 percent, the residents of Wyandotte County are paying 55 percent,” he said.

Taxes already are high, and this helps support a for-profit business, he said.

“I don’t believe that is fair to all the citizens of our county,” Bryant said. Many license plates in their parking lot are not from Wyandotte County; therefore, Wyandotte County is subsidizing the entertainment for other counties, he added.

Unfortunately, this is not the first time government has stepped in to help. Back in 2013, the UG gave the team $174,000 so they could pay their mortgage. The same year the UG purchased the ballpark itself of $8 million. (Note that in 2013 the team was said to generate $5.5 million per year for the local economy; now the number is $4.2 million.) But the franchise is still failing.

Subsidies for sports teams are a bad idea even in good times—but using taxpayer funds to subsidize and then purchase a failing sports team is even worse. 

About the Author

Patrick Tuohey is a senior fellow at the Show-Me Institute and co-founder and policy director of the Better Cities Project. Both organizations aim to deliver the best in public policy research from around the country to local leaders, communities and voters. He works to foster understanding of the consequences — often unintended — of policies regarding economic development, taxation, education, policing, and transportation. In 2021, Patrick served as a fellow of the Robert J. Dole Institute of Politics at the University of Kansas. He is currently a visiting fellow at the Yorktown Foundation for Public Policy in Virginia and also a regular opinion columnist for The Kansas City Star. Previously, Patrick served as the director of municipal policy at the Show-Me Institute. Patrick’s essays have been published widely in print and online including in newspapers around the country, The Hill, and Reason Magazine. His essays on economic development, education, and policing have been published in the three most recent editions of the Greater Kansas City Urban League’s “State of Black Kansas City.” Patrick’s work on the intersection of those topics spurred parents and activists to oppose economic development incentive projects where they are not needed and was a contributing factor in the KCPT documentary, “Our Divided City” about crime, urban blight, and public policy in Kansas City. Patrick received a bachelor’s degree from Boston College in 1993.

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