Kansas City Crafts New STAR Bond to Keep Royals

City officials use tax revenue boost around Washington Square Park to fund new stadium

Apr. 18, 2026 at 3:39pm

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A highly reflective, minimalist metal and glass model of a baseball stadium floating on a plain white background, with dramatic shadows creating an abstract, symbolic representation of the complex negotiations behind sports team relocation.A conceptual studio photograph captures the intricate financial arrangements cities must navigate to retain their professional sports franchises.Kansas City Today

After losing the Chiefs to a STAR bond in Kansas, officials in Kansas City, Missouri have crafted a similar financing tool to keep the Royals baseball team. The new STAR bond aims to leverage increased tax revenue around the Washington Square Park area to pay back the city's debt for a new stadium.

Why it matters

STAR bonds have become an increasingly common way for cities to finance major sports stadium projects, but they can also be controversial if not structured properly. Kansas City's new approach demonstrates how municipalities are getting creative to retain professional sports franchises amid rising costs.

The details

The new STAR (Sales Tax and Revenue) bond in Kansas City will work similarly to the one used to build the Chiefs' new stadium across the state line. It will allow the city to capture increased sales, property, and other tax revenue generated around the Washington Square Park area to pay off bonds used to finance a new Royals stadium.

  • Kansas City officials began exploring the STAR bond concept in early 2025.
  • The city council approved the final STAR bond plan in March 2026.
  • Construction on the new Royals stadium is expected to begin in summer 2026.

The players

Kansas City, Missouri

The city that is using a STAR bond to finance a new stadium for the Royals baseball team.

Royals

The Major League Baseball team that will be getting a new stadium in Kansas City funded by the STAR bond.

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What they’re saying

“STAR bonds have proven to be an effective tool for cities to invest in major developments that drive economic growth. We’re confident this approach will keep the Royals in Kansas City for years to come.”

— Quinton Lucas, Mayor of Kansas City, Missouri

What’s next

The city council will vote on the final STAR bond plan and stadium development agreement in June 2026 before construction can begin.

The takeaway

As the costs of retaining professional sports franchises continue to rise, cities like Kansas City are getting creative with financing tools like STAR bonds to keep their teams. This approach aims to leverage increased economic activity to pay for stadium projects, rather than relying solely on taxpayer funding.