Ohio Governor Approves Funds for New Browns Stadium
Ohio Governor Mike DeWine has given the green light to a $60 billion biennial budget, which includes an allocation of $600 million from unclaimed funds for the construction of a new stadium for the Cleveland Browns. The Republican governor signed the budget on Monday night, just before midnight, meeting the deadline. The initial request from Haslam Sports Group, owner of the Browns, proposed that the state contribute to the construction of a new $2.4 billion domed stadium in Brook Park, a suburb south of Cleveland. DeWine had suggested doubling sports betting taxes to help the Browns, as well as the Cincinnati Bengals and other teams that might need improvements to their facilities. However, the Legislature chose to use a portion of the $4.8 billion in unclaimed funds that the state manages, coming from small sums forgotten in inactive bank accounts, uncashed checks, and utility deposits. Currently, there is a 10-year time limit before that money reverts to the state.In a statement issued on Tuesday, the Browns called the budget’s approval a “tremendous milestone for our organization” and stated that DeWine and the Legislature collaborated “to find a responsible way to support such a transformative project.” Last October, the Browns announced their intention to build a state-of-the-art stadium and entertainment complex in Brook Park, located 15 miles south of Cleveland, once their stadium lease with the city expires at the end of the 2028 NFL season. The budget also includes modifications to the state’s “Art Modell Law,” enacted in 1996 after former Browns owner Art Modell moved the franchise to Baltimore. The original law stated that no professional sports team playing in a tax-funded stadium in Ohio could relocate without an agreement with the city where it played, unless that city was given six months’ notice with the opportunity to purchase the team. The new wording in the signed budget applies the law only if a sports team tries to move out of Ohio. The Mayor of Cleveland, Justin M. Bibb, expressed his disappointment on Tuesday with the final state budget.“This is a win for taxpayers, and it will provide a significant amount of money for things that improve the quality of life in Ohio,” DeWine said about the stadium funds.
Mike DeWine
Bibb added: “We also remain firmly opposed to changes to the Modell Law, which was enacted to protect communities that have made significant public investments in their sports teams. Undermining this statute sets a problematic precedent and leaves cities like Cleveland with fewer tools to safeguard long-standing public assets.” In January, the city of Cleveland sued the Browns over the proposed move, seeking to invoke the “Modell Law”. Lawmakers representing Cleveland and surrounding communities, mostly Democrats, have criticized the proposal as a gift to the team’s billionaire owners. Democrats outside the Legislature have threatened to sue if DeWine signed the plan, arguing that it would constitute an unconstitutional raid on unclaimed funds without due process.“We are deeply disappointed that the final state budget includes a $600 million public subsidy for a domed stadium in Brook Park and changes to Ohio’s Modell Law, provisions we strongly opposed and requested be removed,” Bibb said in a statement. “The Browns’ relocation will divert economic activity from downtown, create a competitive entertainment district, and disrupt the momentum of the redevelopment of our riverfront.”
Justin M. Bibb