Power
Map of the city of Kansas, USA 1899
Map of the city of Kansas, USA 1899
Truce is over

Kansas restarts the Kansas City Border War in attempt to poach the Chiefs from Missouri

Max Knoblauch

When a pro sports team packs up and moves to a new state, it can deal a crushing blow to fans. When that new state ends up being just a few minutes away in the exact same metropolitan area, that blow might reopen decades-old wounds.

That’s what could happen with Super Bowl champion the Kansas City Chiefs, once their current lease on a sports complex shared with the MLB’s Kansas City Royals expires in 2031. In April, Missouri voters said “no thanks” to a tax measure that would’ve helped fund a new $2 billion stadium for the Royals and an $800 million overhaul of the Chiefs’ Arrowhead Stadium. Then, Kansas moved in.

$3.5B
Cost of two new stadiums
Up to 70% covered by Kansas

This week, Kansas lawmakers approved a tax-incentive bill that would allow the state to issue bonds covering up to 70% of the estimated $3.5 billion cost of two brand-new stadiums for the teams. Kansas would pay off the bonds over 30 years with money made from sports betting and the state lottery. Kansas Gov. Laura Kelly is expected to approve the proposal, which experts have called a “blank check” for the Chiefs. 

For the Chiefs and Royals, moving would mean packing up their current stadiums in Kansas City, Missouri (population 509,000), and taking a short drive across state lines to their hypothetical new stadiums in Kansas City, Kansas (population 157,000).

A brief history of the Kansas City Border War

It might seem odd for neighboring states that share a metro area (and labor market) to compete for pro sports teams, but it’s far from the first time the states have feuded over business in the area. A “border war” went on for many years, with each spending millions of dollars in taxpayer money to tempt businesses from one side to the other. Companies like AMC Theatres and Applebee’s crossed state lines to claim subsidies, sometimes multiple times, before the two states finally reached a legally binding truce five years ago.

In the decade leading up to the truce, Kansas and Missouri spent an estimated $335 million luring companies from state to state. In the end, Kansas came out slightly on top with roughly 1,200 jobs.

“It was really, truly these companies moving a couple miles down the road and literally nothing changing,” said Pat Garofalo, director of state and local policy at the American Economic Liberties Project and author of “The Billionaire Boondoggle.” “Like, people had to alter their commutes a little bit.”

The Kansas City Border War
$151M
spent by Missouri to get Kansas companies to move
$184M
spent by Kansas to get Missouri companies to move
$335M
Total amount given away by the states
1,200
Net jobs that actually moved as a result

Whether the brazen attempt by Kansas to draw one of Missouri’s primary attractions over to its side of the river will reignite the border war is yet to be seen. Some Missouri lawmakers already see the tax-incentive bill as a violation of the truce, but Gov. Kelly has said the agreement was about businesses and not teams.

The Chiefs players would probably be happy with a change: the team's facilities and ownership got abysmal ratings on the NFL Players Association player survey this year. Wherever the KC teams end up, Garofalo says it won’t be all that clear which state actually “won" (though he added that Missouri-based fans might get a W just by being off the hook for a giant subsidy package).

A hard-won truce, thrown away for little gain

“There’s really no reason to think that this will be economically beneficial,” Garofalo said.

“The job creation is almost always zero in these instances anyway, and the jobs that are created are bad, because we’re talking about seasonal, no-benefit, you know, rocking-popcorn-in-the-stands-type gigs.”

Studies have long shown that subsidies for sports stadiums don’t pay off.

The MLB’s Atlanta Braves relocated from downtown Atlanta to a suburb 10 miles north in 2017, and economist J.C. Bradbury found that the deal is costing taxpayers about $15 million/year. In New York, a near $1.7 billion new stadium for the Buffalo Bills will cost taxpayers $850 million. A preliminary economic analysis of the stadium found that the largest fiscal revenue source the state gains from the deal comes from personal income taxes paid by the team’s players. 

Garofalo notes that it’s not often economists agree on, well, anything. For stadium subsidies, though, that’s not the case.

“The evidence is just overwhelming. There’s no question anymore amongst the people who look at this on the data and academic side,” he said.

“Publicly funded sports stadiums do not provide economic benefits. Like, period, full stop, we’re done, no question about it.”

More Power

See all Power
power

WSJ: DOJ approved the Paramount-Warner Bros. deal even as investigators were leaning toward suing to stop it

The Justice Department’s approval of Paramount’s $111 billion acquisition of rival Warner Bros. Discovery Friday came as a surprise to the agency’s antitrust investigators, according to Wall Street Journal reporting.

Per the WSJ, a team of lawyers who’d scrutinized the merger were leaning toward recommending a lawsuit to block the deal, but hadn’t gotten to make their final recommendation, before they were told that it had been approved on Friday.

Antitrust investigators typically make a final recommendation to the agency in the review process — and that recommendation is often followed by the agency — but that step was reportedly skipped in this instance. Last month, Semafor reported that senior DOJ antitrust officials appeared likely to approve the Paramount-WBD combo.

The deal could still face antitrust challenges from a collection of states led by California, and EU regulators.

Per the WSJ, a team of lawyers who’d scrutinized the merger were leaning toward recommending a lawsuit to block the deal, but hadn’t gotten to make their final recommendation, before they were told that it had been approved on Friday.

Antitrust investigators typically make a final recommendation to the agency in the review process — and that recommendation is often followed by the agency — but that step was reportedly skipped in this instance. Last month, Semafor reported that senior DOJ antitrust officials appeared likely to approve the Paramount-WBD combo.

The deal could still face antitrust challenges from a collection of states led by California, and EU regulators.

power
Jake Lahut

Strait of Hormuz is closed to all oil tankers and commercial ships, Iran military says

In retaliation to US strikes, the Islamic Republic of Iran announced that the Strait of Hormuz is fully closed as of early Thursday morning in Tehran. The attacks from the US were separate from a series of retaliatory drone and missile launches overnight Tuesday into Wednesday.

President Donald Trump told Fox News in a phone interview on Wednesday night that “the bombing will stop soon,” but if Iran doesn’t sign the agreement put forward by special envoys Steve Witkoff and Jared Kushner, “we’ll bomb the shit out of them tomorrow night.”

When asked whether the ceasefire still stands, Trump described it as “the most violated ceasefire in the history of the world,” per Fox News.

According to Al Jazeerah, Iran’s Mehr news agency reported that Iran’s joint military command specified that any oil tankers or other commercial vessels will be attacked if they attempt to cross the strait.

This is the second day in a row hostilities have resumed to a level not seen since the early April ceasefire was announced.

US CENTCOM announced the series of strikes beginning at 5:15 p.m. ET on Wednesday, which Secretary of Defense Pete Hegseth previewed in on-camera remarks, promising to “strike ’em hard tonight” before later saying he would not broadcast whether the military would take any action.

Shortly after the announcement on the closure of the Strait of Hormuz to all commercial vessel traffic, Iranian state media reported that two ships attempting to cross were attacked.

This story is developing.

President Donald Trump told Fox News in a phone interview on Wednesday night that “the bombing will stop soon,” but if Iran doesn’t sign the agreement put forward by special envoys Steve Witkoff and Jared Kushner, “we’ll bomb the shit out of them tomorrow night.”

When asked whether the ceasefire still stands, Trump described it as “the most violated ceasefire in the history of the world,” per Fox News.

According to Al Jazeerah, Iran’s Mehr news agency reported that Iran’s joint military command specified that any oil tankers or other commercial vessels will be attacked if they attempt to cross the strait.

This is the second day in a row hostilities have resumed to a level not seen since the early April ceasefire was announced.

US CENTCOM announced the series of strikes beginning at 5:15 p.m. ET on Wednesday, which Secretary of Defense Pete Hegseth previewed in on-camera remarks, promising to “strike ’em hard tonight” before later saying he would not broadcast whether the military would take any action.

Shortly after the announcement on the closure of the Strait of Hormuz to all commercial vessel traffic, Iranian state media reported that two ships attempting to cross were attacked.

This story is developing.

power
Jake Lahut

United States and Iran trade retaliatory strikes, escalating war and rattling ceasefire

The war in Iran is heating back up. Overnight, both sides have been trading hostilities in a series of retaliations to other retaliations.

It marks the most robust escalation in combat since the April 8 ceasefire announcement.

Oil prices were little changed, with Brent crude futures down 0.48% as of 5:30 a.m. ET. At the same time, S&P 500 futures were down nearly 0.7% and the tech-heavy Nasdaq Composite had slipped 1.18%, as the escalations compounded a broader AI sell-off.

Travel stocks, like United Airlines and Royal Caribbean, which got a boost on Tuesday as oil prices fell, lost some of those gains in premarket trading. Meanwhile, oil giants such as Chevron and Exxon ticked higher and chipmakers such as Arm Holdings and Micron continued to slip.

The escalation ladder began ratcheting back up when Iran shot down an American helicopter with a drone while it was patrolling the Strait of Hormuz, a US official told NBC News. US forces then conducted strikes in Iran’s Qeshm Island, Sirik, Jask, and Bandar Abbas, according to Al Jazeera. In response, Iran attacked a US fleet in Bahrain, Al Jazeera also reported.

“The Iranians are trying to make clear that any attack on them would be responded to, regardless of the size and the scope,” Trita Parsi of the Quincy Institute for Responsible Statecraft in the US told Al Jazeera. “Now, of course, whether they are seeking to escalate the situation or de-escalate remains to be seen, and it will be very much measured by how they calibrated their response by attacking these US bases.”

The scope of the strikes and counterstrikes broadened out as of early Wednesday morning in Iran. Kuwait activated its air defense systems to intercept strikes, its army announced.

Mohamed Vall, a reporter for Al Jazeera reporting from inside Iran, described “a lot of activity in terms of air defence by the Iranians, and they talked about the downing of a helicopter, an American MQ-9 [drone] over Bushehr. So that gives you an idea about the scope of these attacks and counterattacks, or these retaliations across the Strait of Hormuz and the Gulf region tonight.”

Iran’s IRGC also reported targeting a hangar for American F-35 jets in Jordan, Al Jazeera reported.

Oil prices were little changed, with Brent crude futures down 0.48% as of 5:30 a.m. ET. At the same time, S&P 500 futures were down nearly 0.7% and the tech-heavy Nasdaq Composite had slipped 1.18%, as the escalations compounded a broader AI sell-off.

Travel stocks, like United Airlines and Royal Caribbean, which got a boost on Tuesday as oil prices fell, lost some of those gains in premarket trading. Meanwhile, oil giants such as Chevron and Exxon ticked higher and chipmakers such as Arm Holdings and Micron continued to slip.

The escalation ladder began ratcheting back up when Iran shot down an American helicopter with a drone while it was patrolling the Strait of Hormuz, a US official told NBC News. US forces then conducted strikes in Iran’s Qeshm Island, Sirik, Jask, and Bandar Abbas, according to Al Jazeera. In response, Iran attacked a US fleet in Bahrain, Al Jazeera also reported.

“The Iranians are trying to make clear that any attack on them would be responded to, regardless of the size and the scope,” Trita Parsi of the Quincy Institute for Responsible Statecraft in the US told Al Jazeera. “Now, of course, whether they are seeking to escalate the situation or de-escalate remains to be seen, and it will be very much measured by how they calibrated their response by attacking these US bases.”

The scope of the strikes and counterstrikes broadened out as of early Wednesday morning in Iran. Kuwait activated its air defense systems to intercept strikes, its army announced.

Mohamed Vall, a reporter for Al Jazeera reporting from inside Iran, described “a lot of activity in terms of air defence by the Iranians, and they talked about the downing of a helicopter, an American MQ-9 [drone] over Bushehr. So that gives you an idea about the scope of these attacks and counterattacks, or these retaliations across the Strait of Hormuz and the Gulf region tonight.”

Iran’s IRGC also reported targeting a hangar for American F-35 jets in Jordan, Al Jazeera reported.

power

New York legislature passes 1-year data center moratorium

The New York state legislature has passed a one-year ban on large data centers in the state.

The bill now heads to Gov. Kathy Hochul’s desk, where it faces an uncertain fate. If Hochul signs the bill, it would become the first such statewide ban to succeed in becoming law.

That’s far from certain, as Hochul has opposed state-level legislation over data centers. In May, Hochul said, “This is a local decision for municipalities, its land use, which is the purview of local governments. It’s not a statewide approach necessarily, but its something Im looking at intensely.”

In April, Maine Gov. Janet Mills vetoed a similar statewide moratorium on data centers.

Opposition to data centers is growing rapidly across the US. A federal data center moratorium bill was introduced in March, and at least 14 states have proposed pauses on data center construction, according to the National Conference of State Legislatures.

That’s far from certain, as Hochul has opposed state-level legislation over data centers. In May, Hochul said, “This is a local decision for municipalities, its land use, which is the purview of local governments. It’s not a statewide approach necessarily, but its something Im looking at intensely.”

In April, Maine Gov. Janet Mills vetoed a similar statewide moratorium on data centers.

Opposition to data centers is growing rapidly across the US. A federal data center moratorium bill was introduced in March, and at least 14 states have proposed pauses on data center construction, according to the National Conference of State Legislatures.

EU Commission Vice-President Virkkunen and Commissioner Jorgensen hold press conference

EU proposes “tech sovereignty package” to bolster domestic AI and chip industries

Europe is hastening its breakup with US tech as the Trump administration’s grip on American tech companies tightens.

Latest Stories

Sherwood Media, LLC and Chartr Limited produce fresh and unique perspectives on topical financial news and are fully owned subsidiaries of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Money, LLC, Robinhood U.K. Ltd, Robinhood Derivatives, LLC, Robinhood Gold, LLC, Robinhood Asset Management, LLC, Robinhood Credit, Inc., Robinhood Ventures DE, LLC and, where applicable, its managed investment vehicles.