The Browns plan to offer “up-front cash” to encourage Ohio to issue $600 million in bonds for the proposed domed stadium and mixed-use development in Brook Park.
COLUMBUS, Ohio — A representative of the Haslam Sports Group (HSG), owners of the Cleveland Browns, will tell state lawmakers later today that the team is prepared to offer “up-front cash” to help alleviate any concerns about issuing $600 million in bonds toward a new domed stadium in Brook Park.
Last month, the Browns shared details of their plan to finance the $3.4 billion economic development project, that features a $2.4 billion domed stadium along with a mixed-use development.
The Haslams, along with their development partners, have committed to invest more than $2 billion in private capital. The state of Ohio would be asked to issue $600 million in bonds that would be paid back by tax revenues, while the city of Brook Park and Cuyahoga County would be asked for an additional $600 million in bonds to be covered by an increased admissions tax, parking tax, bed tax and rental car surcharge.
HSG Chief Administrative Officer and General Counsel Ted Tywang is scheduled to testify before the House Arts, Athletics and Tourism Committee this afternoon. In his written testimony, shared by the committee, Tywang will tell lawmakers that HSG is willing to help “de-risk” the investment from the state of Ohio.
“HSG is also willing to further de-risk the State and protect taxpayers against underperformance in our revenue projections through an up-front cash payment to the State equal to the present value of a portion of the principal balance of the State bonds,” Tywang wrote in his testimony. “While there is substantial cushion in our revenue projections to more than cover the State debt service obligations, this unique up-front payment structure would further hedge State risk and would be the most conservative state funding construct of any major sports-related development in the country.”
The Haslam Sports Group is projecting that the project will generate $2.9 billion in state tax revenues over the initial 30-year lease term.
At the same time, Gov. Mike DeWine has also proposed to double the sports gaming tax in Ohio to 40% to help fund stadium projects statewide. Tywang says HSG ‘applauds’ DeWine’s “creative stadium funding mechanism.”
You can see Tywang’s slideshow presentation, which includes renderings and a timetable for the mixed-use development, below.
HOW WE GOT HERE
With the Browns’ lease at Huntington Bank Field set to expire in 2028, the Haslams announced in March of 2024 that they were down to two options when it comes to their future stadium site: a $1 billion renovation to the existing downtown stadium, or a domed stadium outside of the city at double the cost. Word soon spread that the Haslams had optioned more than 170 acres of land in Brook Park near Cleveland Hopkins International Airport.
On Aug. 1, in what the city called “a competitive deal to retain the Cleveland Browns at their current stadium site,” Mayor Justin Bibb put forth a $461 million financing proposal to the Haslams to renovate the 25-year-old facility. The plan included a 30-year lease arrangement.
Six days later, the Haslam Sports Group unveiled renderings and video showcasing what a domed stadium complex in Brook Park would look like. In a letter, Haslam Sports Group Chief Operating Officer Dave Jenkins referred to the idea of building $2.4 billion dome in Brook Park as a “transformational option” that will create “a modern, dynamic, world-class venue that would greatly enhance the fan experience and enable the State of Ohio and our region to compete for some of the biggest events in the world 365 days a year. Similar to other markets in the Midwest, this proposed domed stadium would catalyze our region in a major way.”
Less than a week later, Cuyahoga County leaders pounced on the proposal, arguing it “does not make fiscal sense” for citizens and taxpayers. County Executive Chris Ronayne urged the team to focus on renovating the current stadium, and stated that “any proposal that would create an unacceptable risk to the County’s general fund cannot be considered.”
On Oct. 17, the Browns confirmed their plans to move to Brook Park with an adjacent mixed-use development alongside the domed stadium. Team owners argued renovating the current stadium would not solve long-term issues, and that a domed stadium would allow them to host big events year-round and generate more revenue in the region.
In a press conference that same day, Bibb expressed his deep disappointment in the Haslam Sports Group’s decision, calling the team’s choice “frustrating and profoundly disheartening.”
“We have exhausted every single option to keep the browns in our city without compromising the general revenue of our city,” Bibb said during a press conference. “We remain committed to doing what we can to keep the Browns in Cleveland if Brook Park is not viable.”
One week after the announcement, the Browns filed a federal lawsuit asking a judge to declare the so-called “Art Modell Law,” which requires any Ohio team playing in a tax-supported facility to give the city or locals the chance to buy the team, unconstitutional. Ohio Attorney General Dave Yost later filed a motion to intervene on the city’s behalf, which was granted. More recently, Yost and the city of Cleveland each filed motions seeking to overturn the Browns’ lawsuit.
In November, a Cleveland-commissioned study claimed Brook Park was not a viable option for the team. It determined Brook Park would find it difficult to attract residents and retailers and also showed Cleveland would take a hit without a stadium, losing $30 million in economic activity and $11 million in tax revenue.
But a competing study commissioned by Haslam Sports Group found that while the move would close the door on the snowy types of home games, the Brook Park site would open the door to nearly 5,400 jobs and $1.3 billion in annual economic activity for Cuyahoga County.
Last week, Brook Park Mayor Edward Orcutt told 3News’ Kaitor Kay he’s “100 percent” confident the project will be built in town at the former Ford Motor Company site, but is working with his finance and engineering department heads to ensure the numbers make sense.
“What we’re going to have to do is over the next few months … we have to be definitive of what money is available to be able to make this project a reality,” he asserted. “Then what we want to do from there is make sure that we have everything in line to be able to get that shovel in the ground in 2026.”