CLEVELAND — The Cleveland Browns are standing by their ask to state lawmakers to sell $600 million in bonds to finance a new stadium and entertainment complex in Brook Park.
The Haslam Sports Group (HSG), which owns the Browns, says revenue brought in from the new stadium will be more than enough cover the cost of those bonds. In an Ohio House Arts, Athletics and Tourism Committee Tuesday, the Browns’ general counsel, Ted Tywang, also announced the team will provide a $38 million upfront payment to the state, that could be tapped into in case the new revenue stream is not sufficient, as an added protection for Ohio taxpayers.
“I'll just point out that this idea of cash collateral doesn't really exist in sports facility funding,” Tywang said. “This would be kind of the first time, as far as we know, that an upfront payment has been done.”
The proposal for the Brook Park project estimates a total cost of $2.4 billion for the stadium, and Tywang said the HSG intends to invest another billion dollars into development around the stadium for hotels, apartments, retail and offices.
In addition to the $600 million from the state, the Browns are seeking $600 million in public funding locally. Tywang said HSG hired RSL Co., a national consulting firm, to conduct a viability study for the Brook Park development, which predicted having a stadium that’s enclosed will bring more events and therefore, more revenue, to the region.
“We're so fortunate to have this site that that domed stadium can anchor a major mixed use development that's driving tremendous activity year round, that there's enough fiscal impacts or direct tax revenues to support the investment we're asking for and then some,” Tywang said.
A recent AFP Action poll of about 1,000 registered voters in Ohio found that 79% of respondents oppose the use of taxpayer funds to help the construction of the new stadium.
While some state lawmakers expressed support for the plan, others, like Rep. Dontavius Jarrells, D-Columbus, raised concerns over whether investing so heavily in stadiums is a good use of public funds and whether the new development could pull economic activity away from hubs like downtown Cleveland.
“We are dealing with real issues in Ohio,” Jarrells said. “And we don't have enough money to address every issue. There are children who are going hungry. There are lack of housing options.”
Tywang said the Browns’ ask is not a handout and reiterates the loan will be paid back when the new complex starts turning revenue.
“There are no existing revenues that we're taking,” Tywang said. “It's not like we're taking from a health and human services budget at the state or at the local level. For our ask, it is only revenues that are generated by the project.”
About a month ago, Gov. Mike Dewine (R) unveiled a plan that would double the tax on sports betting revenues to generate revenue toward the stadium.
When asked about that plan, Tywang said, “We applaud his creativity in his budget with finding a solve. I think finding that solve was to us, a recognition of how important these projects are and how much sports facilities and certainly transformative visions like this mean,” he said. “The construct we've worked on is, again, designed to leverage the impact of the project and not require any new taxes. But, you know, I think that's for you all to figure out.”
When asked if the $600 million from the state was needed for the project to move forward, Tywang said the Browns only see it being viable through a public-private partnership. He added at that point, they would have to reassess but said ownership doesn’t intend to leave Northeast Ohio.
As part of the funding plan, HSG is also seeking a $600 million dollar bond issuance between Cuyahoga County and the City of Brook Park to cover the rest of the public portion of the funding plan.
County Executive Chris Ronayne has been vocal about his desire to keep the Browns on Cleveland’s lakefront in the interest of protecting taxpayer investment in the development of downtown Cleveland, including the plan for a renovated lakefront stadium. He’s said he is not comfortable with the risk of investing in new development that could pull economic activity away from downtown.
"Cuyahoga County continues to have dialogue with the Haslam Sports Group and the City of Cleveland regarding the future of Browns stadium," said a spokesperson from the County Executive Office. "We firmly believe that the lakefront remains the best place for the facility. At this time, the County does not have updates on financing options, and is not committed to a timeline on those decisions."
Mayor of Brook Park, Edward Orcutt, said he’s being careful to ensure this deal will make fiscal sense for his city, but he’s confident the details will be worked out soon.
“Here in the City of Brook Park, we've been doing a lot of our due diligence with utilities, making sure that this is affordable for ourselves,” Orcutt said. “And I would say that we're pretty close to making sure that we can move forward with the things that are necessary to make this a reality.”
The Browns’ lease on the current stadium on Cleveland’s lakefront is up in 2028.
The City of Cleveland and the teams’ owners are suing each other in state and federal court over the decision to move.
