Flying under the radar last week was the story about the Chicago Bears bailing out of Chicago
The announcement of a potential move from Illinois to Indiana came across as a sports story.
But in reality, it’s an economic signal that fits a much larger trend of corporate and capital migration.
Translation: Big money is rapidly moving out of Blue Cities and States.
Indiana Governor Mike Braun wrote on X:
“Indiana is open for business, and our pro-growth environment continues to attract major opportunities like this partnership with the Chicago Bears.”
“We’ve identified a promising site near Wolf Lake in Hammond and established a broad framework for negotiating a final deal…The State of Indiana moves at the speed of business, and we’ve demonstrated that through our quick coordination between state agencies, local government, and the legislature to set the stage for a huge win for all Hoosiers…”
So, why would the Chicago Bears even consider leaving their landmark Soldiers Field stadium to a remote town in Indiana?
In one word…MONEY.
Bears Bailing Out
It’s not like the Bears want to leave Chicago. Because they were willing to invest $2 billion into a new stadium in Illinois
But the increased tax liability is simply not worth the cost.
Ironically (or NOT) the Uber-Liberal Illinois Gov. JB Pritzker does not understand that capital does not wait for political red tape or policy.
Capital moves quickly, ultimately favoring the most predictable and supportive environments.
Do the math…
The current land tax for the Bears stadium is $3.6 million annually. But expanding the stadium in Illinois could come with a tax bill upward of $36 million annually.
And who in their right mind would agree to a tenfold increase in taxes?
It is quite extreme to see a football team abandon its namesake city after many decades.
But it exemplifies the nature of the trend we are witnessing:
CAPITAL NO LONGER FEEL WELCOME IN BLUE STATES
Not only will the state of Illinois be losing millions in tax revenue, but they’re also losing tourist dollars on restaurants, hotels, parking, local transit, merchandise goods sales, construction, and stadium jobs, payroll taxes, property taxes, event taxes, and so on.
The trend has already been set in stone.
Chicago is yet another example of how desperate, mismanaged governments are destroying their cities and states with overwhelming taxes.
And like we said before, business/capital does not wait for political red tape or policy.
It sees the storm coming and moves.
And this is like what we’re seeing in the markets today as the SECTOR ROTATION picks up momentum.
Learn what sectors of the markets are rotating (getting out of the approaching storm) in our upcoming March newsletter (HERE).
Share this with a friend…especially if they live in Chicago. They’ll thank YOU later.
And tell them:
We’re Not Just About Finance
But we use finance to give you hope.
“And you shall know the truth, and the truth shall make you free.”
