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The dumbest move by taxpayers.

The dumbest move by taxpayers.

Released Tuesday, 19th March 2024
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The dumbest move by taxpayers.

The dumbest move by taxpayers.

The dumbest move by taxpayers.

The dumbest move by taxpayers.

Tuesday, 19th March 2024
Good episode? Give it some love!
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New Braunfels Chiefs. Good.

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I'm gonna move in a little closer. The

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2:12

Rock Chiefs. Maybe try

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The home of the three-time Super Bowl champions.

2:20

What do you think of that? Pretty good?

2:23

All right. Well there's a lot here, a lot to

2:25

unpack. Taxpayers

2:30

do a lot of dumb things. You

2:32

agree, let's rephrase that, you agree to

2:34

do a lot of dumb things. Unfortunately

2:37

I would say, and I'm an outlier

2:39

politically, nobody agrees with me, I get

2:41

that. Unfortunately, to me

2:43

at least, we don't talk

2:45

about nor

2:48

debate tax issues much

2:50

anymore at all. It really doesn't come up

2:52

much anymore. We sort of live in a

2:54

world of culture wars, so that's

2:57

all that's really talked about politically, not your

2:59

tax dollars. Some of

3:01

us, maybe one and a half percent of us, would

3:04

like to talk not at

3:06

all about culture wars and all about taxes,

3:08

but that's not the world. But

3:11

we do agree to do some pretty

3:13

dumb things with our tax dollars.

3:16

But there is nothing you

3:18

agree to do that's dumber than

3:22

building stadiums and arenas

3:24

for professional sports

3:26

franchises. That's the dumbest

3:28

thing the taxpayer does.

3:32

Arguably dumber than corporate welfare, but it

3:35

is a form of corporate welfare. It's

3:37

just the slimiest form of corporate welfare.

3:40

It's stupid on every level. Okay?

3:43

There is nothing more out of whack than

3:47

your money being

3:49

used. You agreeing to allow your

3:51

money to be used to build

3:53

a stadium for a billionaire ownership

3:56

group. It's completely out of

3:58

whack. It's dumb. Because,

4:00

and please understand this, you

4:03

get nothing in return. You

4:06

get nothing in return. Don't

4:09

ever listen to anyone. There's no data

4:11

that backs anybody up. And

4:14

I know we don't live in a world of data. I get it. I

4:17

get it. It's feelings and screaming. But there's

4:19

no data that backs you up that you get anything

4:21

in return. There's no jobs, nothing

4:23

about the economy. It's all bogus. You

4:27

get nothing in return. And

4:29

even if you dismiss that, what

4:32

you end up doing, and think

4:34

about this formula, how stupid it

4:36

really is, especially when it involves

4:39

rich people, you minimize their

4:41

risk, the owner's risk,

4:43

and you maximize their reward.

4:47

You've assumed almost all risk. They

4:49

get all the reward. If you build a park,

4:52

for example, right? Park

4:54

space. At least you can go. If

4:58

you build a school, you

5:00

put your money into schools. You're

5:02

providing skills. Now you could say maybe minimally, but either

5:04

way, I mean, it is a return on investment. The

5:07

investment is this. You're minimizing your

5:09

risk by building schools and paying for

5:11

public education because you're providing skills so

5:13

the next generation does not a drain

5:15

on you. That's the financial return on

5:17

that. Hate it all you

5:19

want if you want. But

5:21

there's something there. It's an investment there. You give

5:24

away your money to a

5:26

billionaire ownership group, you get zero in

5:28

return. You throw it

5:30

away. Why am I going

5:32

here? Well, for

5:34

one, the Super

5:37

Bowl champs are playing the we may

5:39

have to go card. And

5:43

whenever a pro franchise these

5:45

days plays the we may

5:47

have to leave card, guess

5:49

what city is mentioned right

5:52

away? Austin.

5:56

Yep. What?

6:00

You're ready for it. They. Will be mentioned.

6:04

In. Taken do whatever you want. Sin.

6:06

I guess I wasn't kidding that might want

6:08

to Said how you like the new brothels

6:10

Jeeps about hadow the home the three time

6:12

soup Superbowl champs. All that stuff. Play with

6:14

only one. Here's a quick tutorial on sports

6:16

economics. I'm.

6:19

In this case, the Nfl or I. Give

6:22

a quick overview how the how the money works,

6:24

how flows. Owning. An

6:26

Nfl franchise is is lucrative it one

6:28

time only Nfl franchise little bit liking

6:30

or are in owning farmland or something

6:32

and eighty would appreciate many times and

6:34

value but it would spin off much

6:37

cash. But. It does

6:39

now. Lots. Bomb. It's

6:41

a very lucrative business. The spinning off

6:43

a lot of cash business is better

6:45

than ever before. The investment is better

6:47

than ever before. There's no sign of

6:49

attorney backs. The. Media deals are

6:52

locked in. So. The

6:54

business is fantastic. Investment in the return

6:56

the best with his off the charts.

6:59

The. Reason: Owners. Want.

7:02

New stadiums and arenas. And.

7:06

Noise what they want them so often your area

7:08

is surely at some point you think wherever you

7:10

live, wherever you're from, you've you've dealt with us.

7:12

And it's a dumb thing to do. I

7:14

can't emphasize enough. it is idiotic thing to

7:17

do on. Your. Feelings aren't

7:19

worth it ever in any city

7:21

anywhere but. The. Reason

7:23

why. Every few

7:26

years. Wherever. You're from.

7:28

It comes up. Hey, we need a new arena.

7:31

Hey, we need a new state in. The reason

7:33

why they do that is because the revenue goes.

7:35

When there's a new stadium, think of it is

7:37

creating new inventory. And. That's the money.

7:39

Go straight to the owner's pocket. Tape.

7:43

That's. What goes straight to

7:45

the ownership groups? pockets? And.

7:48

It works like this: Media

7:50

Rights dollars. Platform. Dollars

7:52

which are giant in the Nfl. Twenty.

7:55

Billion. Thirty Two billion dollars to be exact.

7:58

Those. are split Ownership groups

8:00

split that money evenly. Now, it's a lot

8:02

of money. It's never been bigger, but

8:05

they split that. The merchandising, most

8:07

people don't even know this, the merchandising

8:09

is split as well. Again,

8:12

that business is good too. But

8:14

so they're looking for new ways, and you

8:16

can't blame them. Any one of us would

8:18

do the same thing, but they're looking for

8:20

new ways to put money directly in their

8:23

pocket. I don't want to split any money

8:25

with anybody. The way I can do that

8:27

is I get the stupid taxpayer led by

8:29

stupid, reckless politicians

8:31

who are nothing but ass kissers,

8:34

a bunch of Chamber of Commerce stiffs to tell

8:36

the public exactly what they want to hear

8:38

with no data to back them up, and

8:40

the foolish taxpayer will build me an arena

8:42

or stadium, and I'll use that money to

8:44

go straight to my pocket, and they get

8:46

nothing back. That's

8:48

the way it works. You

8:51

want to fight about it? Bring it. There's

8:54

nothing to back up the other side. So

8:58

they want the money

9:00

for parking. In

9:02

particular, they want the money for luxury suite

9:04

sales, food, alcohol, parking,

9:07

naming rights. The stuff

9:09

that goes directly into a local arena or

9:11

stadium is the money they want every so

9:13

often. They want a new one because they

9:15

need more. They need more. I need a

9:17

bigger suite. I need more suites. I need more

9:19

parking. I need more shiny stuff, and I get

9:22

somebody to buy it for me. Of course I'll

9:24

do it. It's money directly in my pocket. That's

9:27

kind of how they can—no, that

9:29

is how it works. So

9:34

they tell you, we need this. Everybody,

9:37

I don't care where you're from in a major

9:39

market, you've heard we need this or else. What

9:43

they're really saying is, I need

9:45

new and better and bigger stuff

9:47

to sell for me. That's

9:49

what that means. That's what it's code for. The

9:52

poor morons in San Antonio do it all

9:54

the time. They fall for it every single

9:56

time. They fall for it

9:58

when there's no team to fill the stands. stadiums because

10:01

the ownership groups will say we need this to make

10:03

it work. We need this or else we got to

10:05

go somewhere else where we'll get it. And

10:09

they, what they mean is I need

10:11

it because I need more

10:13

stuff for me to sell. So I can make

10:15

that money. Stadiums

10:17

don't create jobs. They don't think

10:20

it through. Think

10:23

it through what jobs you talking

10:25

about 12 weeks out

10:27

of the year to serve cokes and beer.

10:30

It's a part time job. They

10:32

don't create jobs at best, at

10:34

best. The only

10:36

way to spend this whole sales pitch about, Oh,

10:38

if you build, you know, we're going to create

10:40

some stuff. You're not creating anything. There's

10:43

money's not circulating because of somebody

10:45

serving beer. At

10:48

best they might drive the

10:51

stadiums and arenas might drive

10:54

food and beer sales nearby, but even

10:57

if you say, well, yeah, Jeff, that seems pretty

10:59

obvious. Okay. Taxpayer. You don't get anything back. They

11:01

don't give you free beer. Do they? You

11:03

don't have free parking. Get nothing in return. So

11:06

what that doesn't benefit you. The

11:09

taxpayer doesn't get anything in return. Okay.

11:13

Let's circle it back to central Texas.

11:16

Get ready to hear Austin mentioned.

11:21

I would guess probably the next three days, but

11:23

certainly the next couple of weeks before April seconds.

11:26

Uh, last time before you laughed this off and

11:28

say, wait, what? Yeah, it wasn't

11:30

that long ago that this came out of

11:32

nowhere when it started to be pretty clear

11:36

that understand sports

11:38

economics is really entertainment economics. And

11:40

there are very few markets in

11:42

this country with more disposable. Income,

11:46

more entertainment dollars being spent in

11:48

Texas. I'm pretty certain it's far

11:50

more lucrative to run a business in

11:52

Austin than it is in Kansas

11:54

city or San Antonio or

11:57

Buffalo. So.

12:00

It is what every ownership group

12:02

wants. Wait a minute. I

12:04

go there. I find somebody

12:07

to build me a stadium there. They got a

12:09

bunch of people that have the money to go

12:11

pay for sky boxes. There's a corporate presence there.

12:14

They're spending the money there, and there are

12:16

plenty of people with enough money to buy

12:18

expensive beer and parking. So

12:20

of course it's ideal, absolutely.

12:24

And I can talk about why it hasn't happened yet. Why

12:26

I don't think it'll happen again, but it's got to be

12:28

mentioned. I think it's time an NFL

12:30

franchise, in this particular case, which is the –

12:32

look, it doesn't matter how bad your team is,

12:34

you're making a lot of money. It

12:38

doesn't matter if you put anybody in the stands, you're making

12:40

a lot of money. It doesn't matter if anybody buys any

12:42

beer, you're still making a lot of

12:44

money. Other sports are

12:46

certainly not as lucrative. But last

12:48

time this came up, the Buffalo

12:50

Bills franchise, not exactly a

12:53

market like Austin, I think we can agree. The

12:56

Buffalo Bills ownership group, out

12:58

of the blue – I mean, who knew

13:00

where it was coming from? They wanted

13:02

a new stadium. And

13:05

they trotted out, you know what? Unfortunately,

13:07

we're just going to have to leave.

13:09

People of Buffalo, we got

13:12

to go. We got to go somewhere where we can

13:14

get a stadium because blah, blah, blah, blah, blah. And

13:17

then they floated Austin. Well, Austin

13:19

is an idea. Now, of course, that was

13:21

randomly floated, the

13:24

idea of moving to Austin, you know,

13:26

your new brothels bills, your

13:28

Sam Marcus bills, your Round Rock bills, you

13:30

know, that whole thing. That

13:34

idea was floated, and nobody knew anything about it.

13:36

Nobody had heard this. It had not been mentioned.

13:38

It had not been kicked around. It

13:41

was – even the mayor of

13:43

Austin said, I have no idea what they're

13:45

talking about. Now,

13:48

nobody had an idea what was going on, number one,

13:50

with the Buffalo Bills. Oh, by the way, they got

13:52

their stadium. Of course they did because

13:54

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new roads. Foolish,

19:01

it's foolish. I believe it's close

19:03

to $2 billion. You've

19:05

completely minimized the risk of the owner.

19:07

The owner's not going to the bank

19:09

like you would have to do. No,

19:13

I found something far better. Oh,

19:15

you're gonna build it for me and then I'm gonna get to make

19:18

the money, thank you very much. Well

19:20

owner, do we get tickets? No, do we get beer? Not

19:22

at all. You get nothing in return, you can

19:24

buy a ticket if you'd like. So when

19:28

the Buffalo idea was floated from the ownership group,

19:30

nobody knew where it was coming from, first of

19:32

all. Second of all, they

19:34

were just playing politicians because

19:37

look, politicians by nature are sell out scum,

19:39

in my opinion. Why

19:42

you believe them, I have no idea. So

19:46

they were playing the politicians in New York

19:48

by using Austin as leverage. Now Austin as

19:50

leverage works really well. It worked in that

19:52

case, so don't be surprised when Kansas City

19:54

says, golly, I mean, got family in

19:56

Texas, I have Austin, it'd be a great place, I

19:59

mean, what a market. Yeah, Austin. You

20:01

can't, Kansas City can't compete with

20:03

Austin. Doesn't have the corporate

20:05

base, doesn't have anything close to what Austin has. So

20:08

don't be surprised if Austin is not used as

20:10

leverage again. Austin was used

20:12

as leverage that time even though Austin would have

20:14

said whatever man, we don't care. We're not doing

20:16

anything for Buffalo. You could care less about

20:18

the bills. It didn't matter.

20:21

It worked. It

20:23

worked because in many of these cities,

20:25

Kansas City probably maybe the most likely

20:28

one off of two Super

20:30

Bowl championships, chasing a third,

20:33

it matters to them. They're going to freak out

20:35

when they hear Austin. So don't

20:38

be shocked if and when

20:40

it's mentioned again. And

20:42

here's how it's going to work. It works the

20:44

same way every time. Just ask somebody from San

20:46

Antonio that's been dumb enough to fall for this

20:48

stuff. Yahoo

20:50

News is reporting it might be an idle threat but

20:52

it's a threat nonetheless. If the

20:54

Chiefs don't get an extension of the

20:57

sales tax that would finance a renovation

20:59

of Arrowhead Stadium, they might leave Kansas

21:01

City. See

21:05

where it's going? Chiefs

21:07

president Mark Donovan. You know the timing of

21:09

this is pretty interesting. Right? Fresh

21:11

off a Super Bowl, chasing a third,

21:13

people are feeling it. Yeah. I'm

21:17

not that surprised at the timing of this. The

21:20

Chiefs president is a guy named Mark Donovan. He

21:22

made it clear Yahoo reports if the upcoming public

21:25

vote fails, the Chiefs could leave.

21:28

He says it's really simple. These are

21:30

not new taxes and you can keep

21:32

both teams because one of the teams,

21:34

the Chiefs and the Kansas

21:36

City Royals. The

21:39

Chiefs have already mobilized enlisting players and

21:42

coach Andy Reed to contribute to a

21:44

video aimed at getting people

21:46

to approve the tax. What

21:49

happens if the April 2nd vote fails?

21:52

The president of the Chiefs says this, I

21:55

know that for us, the Chiefs, we'd have to look

21:57

at our options. So you can

21:59

like start. Start the clock on Austin,

22:02

Austin, Austin. Austin

22:05

called. No, he didn't. Would

22:08

those options include leaving Kansas City? I

22:11

think they would have to include leaving Kansas

22:13

City, but our goal here is

22:15

that we want to stay here in Kansas City.

22:17

It's the same script every

22:20

time this comes up around the country,

22:22

and I won't bore you with the

22:25

data, but it's been studied by good

22:27

economics departments, not sell-out politicians. These are

22:29

real numbers, real data, and the data

22:32

says it doesn't do jack financially for

22:34

the markets. It doesn't. Corporate

22:38

welfare doesn't work taxpayers. We've

22:41

been practicing corporate welfare at an obscene level

22:44

in the state of Texas for a long

22:46

time. All

22:48

it is is just a way for politicians to

22:51

suck up to somebody else. That's it. So

22:54

they'll get it. I would predict

22:56

they're not leaving. No

22:58

way. But I

23:01

mean, I think it's a ridiculous thing to

23:03

do. I think it's a ridiculous thing to

23:05

mention, but if I owned an asset like

23:07

that, any one of us would

23:09

probably do the same, and we would look around and

23:11

say, look, why would we run the risk? Why

23:13

would we go and spend the money? Why would we get

23:15

a bank loan? If those morons out there will pay for

23:17

it, let's just get them to do it. So

23:20

they're going to try, and

23:23

I suspect they'll be successful. They were successful in

23:25

Buffalo. I don't know what else is going on

23:27

in Buffalo. Not much, probably, but I got to

23:29

believe there's something far more

23:31

important to the taxpayer, the safety of

23:33

the taxpayer, the educational level of the

23:36

taxpayer, than buying an ownership group of

23:38

$2 billion stadium. Our

23:41

priorities are way out of whack. This

23:44

is going to be an interesting test because these are two of the

23:47

biggest stars in all of

23:49

sports, one of

23:51

whom dating is the biggest star on the planet. It

23:55

is a franchise chasing NFL

23:57

history. It's full of Hall

23:59

of Famer. They're famous on every

24:01

level, and what

24:03

happens when they play the Austin card? People around here

24:06

are going to get giddy, I guess, and

24:08

then in Kansas City and Missouri, they're going to

24:11

freak out. I believe the Chiefs will get what they want.

24:14

But if they, or let's play the game, because I

24:16

don't think this is the last time this is going

24:18

to come up. It's not even the

24:20

first, second, or third. But

24:23

if they or any franchise, I think the

24:26

more likely of the two to come here

24:28

would be the Kansas City Royals. If

24:31

they or any franchise wanted to move here, let's

24:33

just talk about the NFL for a second. Would

24:36

an NFL team come to Austin? I

24:39

mean, there are plenty that want to do it. There's

24:42

a basketball franchise that just played here this past

24:44

weekend. They would love to come here. They

24:47

will eventually. But would an

24:49

NFL team most

24:52

likely know? And I think there

24:54

are several reasons you can disagree all you want. There

24:56

are several reasons why the answer is no.

24:58

Remember, the Chiefs ironically started in Dallas. But

25:01

let's just say this thing all of a sudden, I

25:03

don't know, let's just pretend wishful

25:06

thinking that taxpayers care about taxes

25:08

and not culture wars. So let's

25:10

just for wishful thinking say there's

25:12

pushback in Missouri. I doubt it.

25:15

But let's just pretend that

25:17

the taxpayers say, man, screw

25:20

off. We got bigger

25:22

issues here. Go finance the thing yourself. We've

25:25

been filling that stadium for decades. You do

25:27

it, man. You fix it. It's your

25:29

problem, not ours. What if they did

25:31

that? What if? Just what if

25:33

there was a politician? I know that doesn't exist. I

25:35

know it doesn't. But a politician even said, a popular

25:37

politician in Missouri, I assume, went

25:39

with an R next to their name, said, no, no, no,

25:42

man, we can't do that. Look, we don't want you guys

25:44

to leave. We love your team. We can't

25:46

do that. We got other stuff. We got to

25:48

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sponsors this podcast episode. Would

28:49

it happen? No. I'm

28:52

changing a little bit on this. Reason

28:54

number one, it wouldn't happen here. I

28:57

don't care if it's New Braunfels because

28:59

I don't believe, well, I'll tell you the

29:01

reason why Austin will not be a NFL

29:04

city. But let's talk about the

29:06

suburbs. Could we get the New Braunfels chiefs? Could we

29:08

get the Round Rock chiefs, the Hutto chiefs, whatever it

29:10

would be, Seguin chiefs. There you go. That'd be cool.

29:13

Number one, Jerry Jones would push back.

29:17

There was a time when the Buffalo

29:19

thing was floated, I said, there is no

29:21

way Jerry Jones lets this

29:24

happen. Over his dead body,

29:27

an NFL franchise is 180

29:30

miles south of Dallas. No way, no

29:33

how. I'm backing off a

29:35

little bit, not

29:37

just because he's old and not that far from

29:39

death, but he'll push

29:41

back and he's one of the three most

29:43

powerful people in all of football, which means

29:45

he's among the most powerful cartel in the

29:47

world, football owners. He'll push

29:49

back and if he

29:51

pushes back, it doesn't happen. I don't

29:54

know that I believe anymore that he goes

29:56

to the mat and says, you do this,

29:58

commissioner, it's your head. of

30:00

this, other owners, you approve this and it's your

30:02

ass." I'm not sure he

30:04

goes that far anymore, but I think there's enough

30:06

pushback there. Number one, he stops it in its

30:08

tracks. Number two, the Texans will push back too.

30:13

Now the business is so good. Here's

30:15

why I'm sort of saying, I don't know if they'd

30:17

fight to the end over this. If somebody really, if

30:19

Kansas really wanted to be in Austin, I mean I'm

30:21

sorry, the Chiefs wanted to be in New Braunfels. And

30:26

I just kept pushing it. I don't know that

30:28

I'd buy anymore that the Texans and the Cowboys

30:31

would go to the mat and go to war over this, because

30:34

I just think the money is too big and too

30:36

good, that the argument could be

30:39

made, man, more money in Austin,

30:41

more, another lucrative market, not Kansas

30:43

City, not Buffalo, not somebody's, these

30:45

blue collar cities that are struggling

30:47

to make it. If you

30:49

go to the gold mine that is Austin, Texas, it's good

30:51

for all of us. I could see a case being made.

30:54

So I'm not quite sure they would

30:56

fight to the end. They

30:58

wouldn't like it on the front end, but if

31:00

they were convinced they could make more money, the

31:03

Texans and the Cowboys, because it's

31:05

such a good market, then they would

31:07

probably back off. But there's issues

31:09

one and two to get through. One, that

31:11

Jerry Jones, two, the Texans, three,

31:13

the taxpayer of Austin will not do

31:16

this. And I'm proud of that.

31:19

Not everything we do here is that great, but

31:22

no way. We don't need it. Don't care. Austin's

31:25

one of the few places where it'd be, meh, whatever,

31:28

got better stuff to do. The

31:30

taxpayer of the city of Austin, no way,

31:34

even if it's the chiefs, I would fight with

31:36

you and say no way. No

31:38

way. I

31:41

think there'd be a bigger push by

31:43

the Republicans at the state level than

31:46

there would the politicians in

31:50

Austin. I don't see Austin going for it.

31:53

I don't think Austin taxpayers need it, care about

31:55

it. Then move the

31:57

needle. Now, I do think there's a possibility in

31:59

the South. And

32:02

that's where this would go. That's

32:04

where it's going to be sold. That's where they're going to try to

32:06

convince people is in between

32:09

San Antonio and Austin. An

32:12

NFL stadium that serves San Antonio

32:14

and Austin, that might fly. Those

32:18

taxpayers are not proud of this, and I don't think

32:20

you should be proud of this either. I

32:22

think it would be dumb enough to go for it. I think

32:24

you would have this statewide pitch that

32:27

you would say, well, we're going to combine Austin

32:29

and San Antonio. And my gosh, look

32:31

at these giant markets. These cities are

32:33

growing together, so it makes sense anyway.

32:35

I do think there would be taxpayers

32:37

receptive to that. I think there would

32:39

be plenty of politicians receptive to that.

32:42

I do think it's a possibility. I do. I

32:45

don't think it's a tough sales pitch. I

32:47

think that would happen, actually. I don't

32:50

think that spot. Somewhere along

32:52

beautiful I-35, I'm sure. But

32:55

yeah, I think that pitch works.

32:58

Those taxpayers might do it. City

33:00

of Austin will not see a stadium downtown. You

33:02

will not see a stadium anywhere in the city

33:05

of Austin. Those taxpayers will not.

33:07

You get outside. The further you get outside, I

33:09

think the more likely it would be that it

33:11

might happen someday. Do

33:13

I think the Chiefs ultimately move here? I don't. Do

33:16

I think it's going to be mentioned? I do. Do

33:19

I think increasingly, whether

33:23

it's a Major League Baseball franchise or

33:26

an NBA franchise, i.e. the one down

33:28

the road, maybe an NFL

33:30

franchise, do I think increasingly this

33:33

area is mentioned? Absolutely. Yeah.

33:37

It'll happen one day. The suburbs

33:40

will be home of fill-in-the-blank

33:42

Major League franchise in addition to

33:45

Austin FC in the very

33:47

near future. I just

33:49

think in this case, the Chiefs are going to

33:51

use Austin as leverage to get

33:53

what they want, which will be another stupid

33:56

example of the taxpayer caving.

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