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Thursday, August 2, 2012
Royals & Chiefs Caught In Taxpayer Scandal
Both teams currently get reimbursed through a fund for RMMO (repairs, maintenance, management and operations) expenses. This fund was designed to be used first to pay debt service on a $500 million bond approved for the recent upgrades and renovations for both Kauffman and Arrowhead stadiums. Rather than focus on repairs and maintenance, the two organizations are taking advantage of an amendment added to the stadium’s lease agreement that allows the RMMO funds to be used for “event day operations.”
According to documents, the Royals have used only nine percent of the $17 million RMMO funds they’ve requested from taxpayers over the last five years for maintenance, while some of the money has been used to cover payroll taxes. The Chiefs have used just 33 percent of the 27.3 million they have requested.
The main issue here is that both the Chiefs and Royals are using taxpayer money to reduce the cost of running their teams. Taxpayers funds are going towards payroll taxes, something that these funds were not originally designed to do. It will be interesting to see what the Kansas City public’s reaction to this news will be, and if it has any effect on attendance or support during the remainder of the Royals’ season or the upcoming Chiefs season. At this point, no official statements have been issued by either organization to respond to these allegations, but Royals owner David Glass has had contact with County Executive Mike Sanders regarding the team’s spending.
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Anyone have any breaking news on this topic yet? Any updates on the responses from the Chiefs and / or the Royals? This story seems very strange...
Didn't the Chiefs and the Royals already make the renovations to the stadiums? Are they still taking tax dollars for those?
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