Kansas City Fans Reject New Stadium Tax Increase: The Sports Bubble Is About to Bust

As I listened to economist Dave Brat on Steve Bannon's War Room program this morning, who illustrated how America's economy is a bubble waiting to burst, it dawned on me that you can describe North American sports the same way.

People have begun to reexamine their fixation on sports and millionaire athletes, and it's great to see.

Sports are essential to the fabric of a nation. It used to be a national unifier during The Olympics when people would set aside their differences and cheer for their country's athletes. Team sports can be a great teacher and motivator for young people, especially boys. The Young Men's Christian Association, or YMCA, founded in 1844, wove sports with biblical tenets to teach young men the importance of physical fitness. It spawned a worldwide movement called Muscular Christianity.

I am an admirer of sports. Baseball is my favorite. I get the least amount of racial idolatry, LGBT clownery, and preachy women on my television screen. However, in the last decade or so, I have witnessed how much space the sports conversation takes up compared to real-world issues. And I've noticed how much money people spend on sports. The passion for watching sports, idolizing athletes, and gambling on idolized athletes is astounding.

Working-class people are getting poorer. Most Americans do not have $500 in savings, nor can they cover an emergency $1000 expense, but you couldn't tell by the amount of money spent on sports every year.

Is the $71 billion North American sports industry a net positive for society?

Citizens in Jackson County, Missouri, have asked the same question. The answer, at least for now, is a resounding no. 58% of Jackson County Missourians voted against a sales tax increase that would have helped pay for a new stadium for the Kansas City Royals and significant upgrades to Arrowhead Stadium, home of the Chiefs.

"We're deeply disappointed as we are steadfast in our belief that Jackson County is better with the Chiefs and the Royals," said Royals owner John Sherman. If an agreement with the county can't be reached, both teams might explore other cities to call home.

In hindsight, COVID was the needle that poked the sports bubble. Teams borrowed millions of dollars from their cities to make up for the loss in sports attendance in 2020, and some still haven't paid that money back. Some municipalities continued with plans for stadium renovations or construction, compounding more debt passed on to the taxpayer. Most stadiums and arenas have become economic burdens on their cities, not the glossy tourist attractions they are marketed as on television.

Michael Farren, a professor and Senior Research Fellow at George Mason University, wrote, "Professional sports can have some impact on the economy."

"But this impact tends to be negative. Individual coefficients, such as stadium or arena construction, sometimes have no impact, but frequently indicate harmful effects of sports on per capita income, wage and salary disbursements, and wages per job."

Many economists across the political spectrum have echoed these sentiments. (Imagine that. Conservatives and liberals agreeing on something.)

During a time of economic uncertainty fueled by financial malfeasance from establishment uniparty politicians, increasing taxes to build another stadium is just too much for many citizens to handle. Good job for Kansas City, MO residents taking a stand.

Too bad Chicagoans don't have the same fortitude. My hometown is in dire economic straits, yet people are outraged that the Bears could move to Arlington Heights, Illinois. As I've stated before, let the Bears leave. Let that financial burden land on another city.

In 2023, a new stadium project started every month. The Cleveland Guardians announced a $200 million renovation for their ballpark, the Baltimore Ravens announced a $430 million renovation for their stadium, and Oklahoma City agreed to increase its taxes to build a new arena for their NBA franchise. All of these projects will receive significant amounts of taxpayer dollars. Cleveland, Baltimore, and Oklahoma City are some of the most economically-challenged metros in the country.

Then, consider the athletes' salaries. I understand professional sports are tough. I'm not here to argue about how much money a player deserves. Nor am I saying we should employ some silly universal income system. But when the Los Angeles Dodgers spend over a billion dollars for two players (Shohei Ohtani's $700 million deal and Yoshinobu Yamamoto's $325 million deal), while many LA residents are feeling a financial crunch, people might start to reexamine their priorities.

A contributor for The Good Men Project had a call to reckoning with sports. When he quit following sports cold turkey, he started studying economics and politics more closely, which spurred his interest in the Occupy Wall Street movement in 2011. 

"I started to have resentment towards opinionated people who knew little about human rights and democracy, but were always glued to their televisions or sports apps," he writes. "I started to wonder if professional sports were a way to keep us distracted and divided, much like [the] coliseum days of Rome as it was starting its fall."

I walked down a very similar path in 2011. The disconnect between what the corporate news outlets were saying about the greatness of the Obama Administration and what I saw with my own eyes gradually led me away from sports. Not caring about every Chicago White Sox game freed more time to explore other areas of interest. I still consume sports moderately, but nowhere near the amount I watched a decade ago.

Is it worth spending hundreds, sometimes thousands, of dollars a year on tickets, concessions, jerseys, hats, gas to and from the arenas, gas to and from sports bars, parking, television sports packages, and gambling when society is falling apart at the seams? What's the value in knowing every quarterback in Kansas City Chiefs history when our nation is in spiritual and economic freefall?

Kansas City residents—and hopefully, many more Americans—are starting to reorganize their priorities.