5 Key Details in Kansas’ STAR Bond Deal with Chiefs
Kansas Governor Laura Kelly announced on December 22, 2025, that the Kansas City Chiefs will establish their new stadium in Kansas City, Kansas. This significant development follows prolonged negotiations aimed at bringing the team over the Missouri border. During the announcement in Topeka, she presented a football to Chiefs CEO Clark Hunt as a symbol of the partnership.
Details of the STAR Bond Agreement
The Kansas Department of Commerce released a detailed 33-page agreement known as the STAR Bond deal. This initiative stands as one of the largest economic projects in Kansas’ history. The project will see the construction of a $3 billion stadium in Wyandotte County, accompanied by a new headquarters and training facility in Olathe, alongside mixed-use developments.
- Total Project Cost: Expected to exceed $4 billion.
- Public Financing: Over $2 billion sourced through STAR bonds.
- Final Agreement Deadline: Parties must finalize agreements by October 31, 2026.
Ownership and Financing Structure
The Chiefs will rent the new stadium, which is scheduled to open for the 2031 NFL season. The state will establish a quasi-governmental entity to own the complex. This structure means the franchise will not pay property taxes on the stadium.
Public funding will account for 60% of the construction costs, approximately $1.8 billion designated for the stadium itself. Kansas will utilize up to $975 million in state funds over multiple construction phases to support additional developments.
Revenue Sources and Obligations
The state’s sports betting tax revenue will finance the bond issuance. The agreement stipulates that 65% of Kansas’ sports betting fund—around $26.2 million as of October—will be allocated for this purpose.
- Annual Rent: The Chiefs will pay $7 million, increased yearly for inflation.
- Maintenance Fund: Requires $17 million annually, with at least a 2% increase each year.
The Chiefs will utilize this rent money to maintain the stadium, with additional support from Kansas’ sports betting revenue amounting to $10 million yearly.
Stadium Naming Rights and Long-Term Commitment
Under the agreement, the Chiefs hold the right to name their stadium. However, the Kansas ownership entity can reject any naming sponsor that may cause public embarrassment.
The Chiefs have committed to a 30-year agreement, ensuring the team remains in Kansas. If they leave before the end of this period, significant financial penalties will be imposed, depending on when the departure occurs.
- 1-14 Years: 100% return of state funding.
- Year 15: 93.75% return.
- Year 22: 50% return.
- Year 29: 6.25% return.
This arrangement marks a pivotal moment for both the Kansas City Chiefs and Kansas, with potential for significant economic growth through the STAR bond initiative.
