Royals, Chiefs sign new lease agreement with Jackson County Sports Complex Authority

KANSAS CITY, Mo. (KCTV) - Kansas City's two largest professional sports franchises have agreed on a new lease with Jackson County Sports Complex Authority.

Chiefs team president Mark Donovan and Royals president of business operations Brooks Sherman put pen to paper Wednesday afternoon at Arrowhead Stadium.

In the lease, the rent for Arrowhead Stadium will be $1.1 million annually. Kauffman Stadium will be $2.75 million per year.

"We needed to work hard to get this accomplished, keep the teams here for the long term, and that's what we did," Sherman said. "I think this goes back to the days of Lamar Hunt and Ewing Kauffman, whose idea it was to begin this and build this great partnership."

The Royals' lease would begin in 2028 after the new stadium is built and last 40 years. The team will also have two renewal options of five years apiece. They will also The lease for the Chiefs begins in 2025 and has a length of 25 years. It also carries three options to renew the lease for five years.

"We've (Chiefs) been very consistent all along, a 25 year lease on a building that's already 50 years old, going on 60 years old by the time we get going here," Donovan said. "It's important to note that we also agreed to three - five-year extensions, so that would take us up to 40 years if we're able to exercise those extensions."

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Conditions of the lease for the Chiefs include that the team has to play all home games at Arrowhead Stadium. The lease does allow for one of the home games to be played outside of the United States.

The Chiefs would also be responsible for the maintenance and insurance of the renovated stadium.

Among the conditions for the Royals is that they have to play 90 percent of the home games at their new stadium.

Both the Chiefs and Royals gave credit to getting the lease agreement accomplished to the Jackson County Sports Authority Chairman Shawn Foster and the Jackson County Legislature.

"There'll be no tax increase - a 25 year commitment from the Chiefs and a 40 year commitment from the Royals to stay in Jackson County," Foster said. "No County cost overruns, all maintenance and repair of the stadiums are the responsibility of the teams, and the teams will bear the cost of demolition of Kauffman Stadium."

The demolition of Kauffman is estimated to cost between $20 and $30 million.

Both the lease agreement and the Community Benefits Agreement have been released by the teams, but have yet to be signed by the Jackson County Legislature.

The CBA released last week showed the teams will commit approximately $6.6 million per year (approximately $266 million total over the next 40 years). The teams will also take over the insurance payments, saving the county approximately $1.5 million annually. Similarly, the teams will also forgo the park levy they currently receive, which will also save the county approximately $1.5 million annually.

County Executive Frank White released the following statement in response to the signed lease agreement:

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