Battleground for Economic Growth: Kansas City’s Upcoming Sports and Stadium Deals Spark ‘Border War’

Over five years ago, Kansas and Missouri decided to end their intense rivalry over attracting businesses to the Kansas City area. For years, both states competed to offer generous incentives for companies to move their headquarters just across the state line. These tactics did not increase jobs or help the economy; they just drained resources that could have been used for schools, roads, and public safety. Many people described this competition as a “race to the bottom.”

In 2019, something shifted. The governors of both states recognized that their efforts were futile and agreed to a truce. Tim Cowden, CEO of the Kansas City Area Development Council, praised this new focus, saying it allows regional officials to work together to create real economic growth instead of just swapping businesses back and forth.

A study by Brookings Metro highlights why the truce is so important. The Kansas City region’s economic output is nearly equal on both sides of the state line, which is uncommon for multi-state areas. Notably, around a fourth of Missouri’s GDP and over a third of Kansas’s GDP stems from this area. Amy Liu from Brookings emphasized how interconnected the two states are when it comes to the success of Kansas City.

Despite having many counties and cities, the Kansas City metro area is learning to act more cohesively. Organizations like the Kansas City Area Development Council promote the entire region instead of individual states. This perspective aligns with how businesses operate today. Joe Reardon, from the Greater Kansas City Chamber of Commerce, noted that companies are more interested in a skilled workforce than just tax breaks.

Even with the truce, local areas like Wyandotte County still seek deals to attract businesses. Greg Kindle from the Wyandotte Economic Development Council explained that companies are now coming to them, often asking for typical incentives instead of extreme measures. For instance, Mies Family Foods is returning to Kansas, drawn by standard tax breaks and a prime location.

However, the peace between states might be fragile, especially when bigger stakes arise. Recent discussions around the Royals and Chiefs exemplify this. Following a failed funding measure for a new Royals stadium, Kansas quickly proposed incentives to lure either baseball or football teams. Missouri reacted similarly, even though studies show these deals rarely boost local economies significantly.

When professional teams do attract economic activity, their employees often come from both states, and fans spend across the metro. Regardless of the team’s location, the entire region can benefit financially. Even if one team leaves, regional leaders believe cooperation will prevail since it’s all about the community rather than competition.

Looking ahead, the Kansas City area is preparing to host FIFA World Cup matches in 2026. This opportunity has led to collaboration between Kansas and Missouri, as both states contribute financially to support the event. With substantial attendance expected, local leaders are focused on maximizing the economic benefits for the entire region.

As they prepare, KC2026, a new nonprofit focused on the World Cup, is working to coordinate efforts across city and state lines. Leaders understand that the region’s ability to cooperate will determine the success of the event and its lasting impact on the local economy.

By working together, Kansas City can demonstrate the strength of a united front—not just for sports but for its overall prosperity. Through thoughtful collaboration, both states can turn what once was a rivalry into a powerhouse for positive regional growth.

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