Kansas City’s proposed deal with the Royals would give the city a small but defined slice of the action at the planned downtown stadium site, while leaving the club in control of most of the money tied to baseball and beyond.
Under the lease agreement set to be discussed Tuesday in the Finance, Governance and Public Safety Committee, the city would receive 5% of net profits from non-baseball events. It would not get any share of baseball, gambling or broadcast revenue. The Royals would also pay $1 a year in rent to occupy the city-owned stadium planned for the former Hallmark headquarters site at Crown Center.
The lease is built around an initial 30-year term, with team-controlled extensions that could add another 10 years. It is also structured to begin on Feb. 1, 2031, and includes two possible five-year extensions at the Royals’ option.
Along with the rent and the non-baseball event profit share, the city would get 30 free tickets for each game and the right to hold as many as eight events a year at the stadium without charge.
The gambling piece is another major part of the proposal. Because Amendment 2 narrowly legalized sports gambling in Missouri two years ago, the Royals would be allowed to run a sportsbook at the stadium. The team would keep all sports-betting revenue, and the lease would prevent the city from limiting sports gambling beyond what state law allows.
The Royals would also avoid property taxes because the stadium would be city-owned. The agreement further exempts the club from sales and use taxes tied to construction, maintenance, future improvements, utility costs and any other tenant obligations.
Advertising and naming rights would also stay with the team. The lease gives the Royals full control over advertising decisions and all related revenue, and they would keep any money from naming-rights deals.
One notable difference from the current arrangement at Kauffman Stadium: the Royals would be responsible for property insurance at the new ballpark. At the Truman Sports Complex, that insurance is paid by the county.
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