Why is Cleveland Browns stadium a hot topic now?
Browns’ owners, Jimmy and Dee Haslam, are saying they want a better stadium by the time the Browns’ lease for the current lakefront stadium expires in 2028. Secret negotiations are underway between the Haslams and city, county, and state officials about the scope of the project (major renovations of the existing stadium or perhaps a new domed stadium?) and how much of the cost taxpayers will be expected to pay. A proposal could be unveiled soon — which will kick off a renewed debate about the fairness of public subsidies for the billionaire owners of sports franchises.
Who owns the lakefront stadium?
The City of Cleveland owns the stadium and leases it to the Browns. The land under the stadium is fill on the lake bed of Lake Erie and thus is public trust land controlled by the State of Ohio on behalf of all Ohioans. The city uses the land under a submerged land lease from the state.
How much has the city already spent on the stadium?
According to a recent analysis by Signal Cleveland, the city has spent about $350 million dollars on the stadium since 1998. The city still owes about $54 million on the original construction debt. Just this summer, City Council approved another $3.5 million for repairs. (Note that these figures do not include the many millions of dollars Cleveland taxpayers pay for the city’s other sports venues, Progressive Field and Rocket Mortgage FieldHouse.)
Where does the public money come from for the stadium?
It’s estimated that the city collects about $6 million a year in revenue from the stadium (including Brown’s lease payments, admission taxes on tickets to stadium events, and income taxes from those who work at the stadium). The city also covers stadium costs with revenues from other regressive taxes — the county sin tax on alcohol and cigarettes; a city tax on admission tickets to sports events, concerts, and theaters; and a city tax on parking and car rentals. In addition, the city’s general fund pays $2 million a year to help pay for an extensive renovation of the stadium done in 2014, according to Signal Cleveland.
What are the terms of the current stadium lease with the Browns?
The Browns pay just $250,000 a year in rent for the stadium. (A previous team owner, Art Modell, paid $650,000 to $760,000 rent for the old Municipal Stadium.) The team claims to spend an additional $10 million a year on operating costs, such as maintenance and security, but it also receives all revenues from ticket sales, personal seat licenses, concessions, naming rights, scoreboard and signage revenue, broadcast rights, as well as revenue from events such as concerts and other sports events held at the stadium. The City of Cleveland may use the stadium up to 8 times a year for non-revenue-generating community events, under the terms of the lease. Meanwhile, the city is responsible for making payments on its debts for the original construction and subsequent renovation of the stadium, property taxes ($796,202/year), insurance ($510,000/year), and for making major repairs.
How much could a new or renovated football stadium cost?
Construction costs are hard to estimate, but it’s possible that a major renovation of the current stadium could cost $1 billion. A new open-air stadium could cost $2 billion and a domed stadium even more.
What do the Haslams want?
While the Haslams’ specific demands have not been made public, they seem to have backed away from the idea of a new domed stadium and its $2-3 billion cost. Instead, they have expressed a desire to remain on the lakefront and do a major rebuilding of the existing stadium. Financially, they seem to expect a deal that’s similar to the one they got in Columbus for their Lower.com Field, the new $320 million home of their Columbus Crew soccer team. That facility reportedly received $20 million from the state, $25 million from a state-funded loan, $51.3 million in bonds paid for by Franklin County, and $63 million from the city of Columbus to support development in the surrounding district. No doubt the Haslam’s are also looking at the public subsidies other NFL teams have received recently. For example, the Buffalo Bills are getting $850 million from state and county sources for their new stadium, and the Tennessee Titans just got $1.26 billion in public funds for their new domed stadium in Nashville.
If the Haslams can afford $230 million for quarterback Deshaun Watson and $800 million for a share of the Milwaukee Bucks basketball team, why can’t they pay for their own stadium?
Good question!
How is a stadium deal related to lakefront development?
The creation of a world-class lakefront is a priority of Mayor Justin Bibb and County Executive Chris Ronayne. So the Browns have worked hard to make the stadium a centerpiece of lakefront plans. But it’s unclear how the stadium (a huge, hulking structure that’s used only 3 percent of the year) fits into concepts for an active, accessible, public lakefront.
Who actually attends Browns games?
Most Cleveland residents can’t afford to attend Browns games. The numbers are probably similar to attendance at Rocket Mortgage FieldHouse, where 90 percent of attendees at Cavs games live outside of Cleveland and 70 percent live outside of Cuyahoga County.
Are sports stadiums good public investments?
No. Studies show that stadiums usually cost taxpayers more than they get in return. Rather than increasing spending, stadiums just reallocate existing local entertainment spending. And they don’t increase the overall number of jobs or tax revenues in a city. In short, the rosy economic projections of stadium boosters hardly ever come true. As one University of Chicago economist once said, “If you want to inject money into the local economy, it would be better to drop it from a helicopter than invest it in a new ballpark.” This is especially the case for football stadiums, which are in use only a few days a year.
What public priorities are competing with Browns stadium?
Taxpayer subsidies for professional sports divert funds from other vital programs in Cleveland and Cuyahoga County, such as affordable housing, community-based public safety improvements, public transit, food and nutrition programs, broadband access, a new county jail, and investments in clean energy and climate resilience.
Why do cities — and counties and states — keep subsidizing football teams?
Public subsidies keep flowing because teams can threaten to move to another city if their demands aren’t met, and no elected official wants to be blamed for “losing” a sports team. The only way to stop this racket is federal legislation to prevent teams from pitting one city against another.
Who’s the biggest donor to Cleveland City Council’s political action committee in the past 20 years?
Cleveland Browns Football Co. — $52,500.
