The National Football League (NFL) team Cleveland Browns’ proposal to leave the lakefront and play in a new domed stadium in Cleveland’s (Ohio, US) suburbs has hit a major snag.
‘AP’ stated that in a letter sent to the team owners Dee and Jimmy Haslam, the Cuyahoga County (Ohio) officials said on August 11th that they’re backing a proposed $1.2 billion renovation of the team’s current stadium and are committed to keeping the NFL franchise in downtown Cleveland “for generations to come”.
New York (US)-based the National Football League is a professional American football league that consists of 32 teams divided equally between the American Football Conference and the National Football Conference.
The Cleveland Browns are a professional American football team based in Cleveland (US). The Browns compete in the National Football League (NFL) as a member club of the American Football Conference North division. The team is named after the first coach and Co-Founder Paul Brown.
The 67,431-capacity Cleveland Browns Stadium is a stadium in Cleveland, Ohio, United States, primarily for American football. It is the home field of the Cleveland Browns of the National Football League (NFL) and serves as a venue for other events such as college and high school football, soccer, hockey, and concerts.
‘AP’ further stated that recently the team unveiled renderings for a $2.4 billion state-of-the-art stadium and entertainment complex to be built in Brook Park, Ohio – about 15 miles South of Cleveland.
The Haslams, who have owned the Browns since 2012, believe a new stadium that could host year-round events, potentially a Super Bowl (the annual league championship game) and Final Fours would trigger development and economic growth for the entire Northeast Ohio region.
The Browns’ proposal came after the City of Cleveland submitted $461 million toward a massive renovation of the current 65,000-seat stadium which was built in 1999 and the redevelopment of its surrounding property.
In the letter signed by executive Chris Ronayne and the Council President Pernell Jones Junior the county argued that a new stadium “does not make fiscal sense” for the Cuyahoga’s residents and the taxpayers.
The letter stated, “Moreover, any proposal that would create an unacceptable risk to the County’s general fund cannot be considered. We believe it is our responsibility and in the best interests of our community to prioritize reinvestment in the existing public assets.”
Part of the county’s argument is that having the Browns downtown is essential to a vibrant City core and pointed to public investments in the 34,830-capacity Progressive Field, home of the Major League Baseball (MLB) team Cleveland Guardians, and an expansion at the Rock and Roll Hall of Fame as signs of urban development.
The letter added, “The stadium is more than just a venue. The team represents the heart and soul of Northeast Ohio and reinforces our community’s identity and pride.”
In a statement, the Haslams acknowledged a stadium renovation or new project “is incredibly complex”.
The Haslams said, “We have been reminded many times that the issues with the current stadium resulted from a rushed process that was not thorough and don’t want that repeated. We have received the county’s response and are still in the process of gathering information and doing diligence on both paths. It would be short-sighted for Northeast Ohio to rule out any options at this point for a long-term decision of this magnitude.”
Funding for the dome/complex project figured to be a major challenge with the Haslams proposing a 50-50 private/public partnership in the $2.4 billion project. The proposed bonds could cover the public portion with the money coming from revenue generated by the dome and its surrounding hotels and the retail sites.
The Browns’ current stadium lease ends after the 2028 season. The team has played on the site since its inception in 1946.
The ‘Vision’
‘wkyc.com’ stated that the stadium plans include a community around the stadium with restaurants, shopping, hotels and a Public Square-like space that can be used for everything from outdoor concerts to holiday festivals.
Earlier, Dave Jenkins of the Haslam Sports Group, stated, “As we’ve begun to share this Brook Park dome vision with the elected officials, the fans and the business and civic leaders, we’ve received overwhelmingly positive feedback. We have also learned through every conversation and understand there is more input to be gathered and still significant work to be done.”
Picking up the Tab
The Haslams would pay for $1.2 billion of the $2.4 billion estimated price tag for the facility. That figure would not include the “approximately $1 billion privately-funded phased development we are envisioning, which would also be tremendously impactful for our region.”
Explained Jenkins, “As demonstrated in the other markets, a project of this magnitude only realistically works through a public-private partnership. We have approached this as a 50-50 partnership on the stadium, excluding cost overruns, which we would cover. The proposed $1.2 billion+ private investment in the stadium are unprecedented and would be the largest private per capita stadium investment ever in this country (US).”
The Renovation Option
‘wkyc.com’ further stated that recently, in what the City called “a competitive deal to retain the Cleveland Browns at their current stadium site”, the Mayor of Cleveland Justin Bibb put forth a $461 million financing proposal to the Haslams to renovate the 25-year-old facility. The plan includes a 30-year lease arrangement and is highlighted by the following:
- $367 million ($227 million from increases in admission tax revenues, $120 million from the Cuyahoga County sin tax (a tax on items such as alcohol or tobacco) revenues and $20 million in existing stadium capital reserves) over the 30-year lease term with a five-year renewal option;
- The City will turn the Willard Garage and the Muni Lot over to the Browns for their exclusive use on gamedays and event days. Parking revenues are expected to generate $94 million for capital repairs and improvements; and
- Under the current lease, the City covers $1.3 million in annual property taxes and insurance while the Browns pay $250,000 in rent. Under the proposed new lease, rent will be waived for the Browns, but they will assume responsibility for the insurance and tax payments. This adjustment aligns with the lease agreements held by the Guardians and the Cavs making it consistent across sports franchises in Cleveland.
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