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Originally Posted by duncan_idaho
1. Most cities don't have a 1% earnings tax that hits the game check of literally every single player who plays in a game in their jurisdiction, either. So every game, the city gets 1% of every game check for players on BOTH teams. For the upcoming year, the cap is $255M. The city is pulling in between $2M and $2.5M in earnings tax alone per season. This doesn't take into account coaching staffs for the Chiefs or any of the administrative employees or other employees.
2. If the Chiefs move across state line, the money spent at the Chiefs game is still going to be spent at the Chiefs game. Which means all that revenue is now being generated in Wyandotte County or Johnson county, rather than Jackson county. That money isn't going to go from the Chiefs to the bowling alley or local pub, unless the Chiefs completely move out of the metro.
The state of MO also has a jock tax, that I think is 2% of earnings. So it has incentive to keep tax revenue there, too.
I know there are financial studies that generally show stadium funding is neutral at best for the area. But Kansas City has some unique factors.
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The tax revenue lost when the stadium leaves is offset by no longer paying the extortion tax. So now every Zman sold or hotel rented downtown MO is no longer leveraged against the extortion tax either. But yeah, nothing solves the problem of siphoning unless the city is already a destination itself and tourism is hot, which KC will never compete against mountains or casinos or the Pacific ocean.
I appreciate your insight and I want to know more. When the JaCo stadium folks announced that last year they lost money, is that not also accounting for the player tax you are talking about?