Legislators rewrite budget to accommodate Cleveland Brown stadium plan

The Haslam Sports Group, owners of the Cleveland Browns, are seeking $1.2 billion in public funding for a new domed stadium.
Ohio Governor Mike DeWine proposed a 40% tax on sports gambling to fund a sports facilities fund, but legislators replaced it with a $600 million bond issue for the stadium.
Critics argue the Haslams’ plan relies on unrealistic projections and puts taxpayers at risk while benefiting billionaires.
Cleveland officials are put off by the Haslams’ plan and are pursuing legal action to block the move.

The long con being played by Haslam Sports Group in its effort to gouge $1.2 billion from Ohio taxpayers gained momentum this month.

Haslam Sports Group is headed by Dee and Jimmy Haslam, owners of the NFL’s Cleveland Browns, majority owners of MLS’ Crew and minority owners of the NBA’s Milwaukee Bucks. They want to build a domed stadium (and a surrounding village) in Brook Park, adjacent to Cleveland Hopkins Airport. They want to move the Browns out of downtown Cleveland and into their airport development after the 2028 season, when their lease at Huntington Bank Field expires.

On Wednesday, Ohio Gov. Mike DeWine discussed his proposed state budget during an appearance at a Columbus Metropolitan Club forum. If you are an interested citizen, the video on the CMC’s YouTube page is a worthwhile view. DeWine has proposed a 40% tax on sports gambling operators, with the proceeds dedicated to a sports facilities fund. The fund is for those times when owners of sports teams are looking for handouts.

“If you look at the next 10 to 20 years, there’s going to be a lot of demand on the state budget for this,” DeWine said. “I don’t think we can afford to continue to go into the general fund of our budget and take this money.”

In Ohio, out-of-state operators of online gaming sites dominate the sports gambling industry. Currently, they pay a 20% tax on their revenues, which totaled around $900 million in 2024, according to the Ohio Casino Control Commission’s statistics. The state dedicates the tax revenue – $180.8 million – mostly to public education, with a tad (2%) going to programs for problem gamblers.

Doubling the gambling tax to create a state-run slush fund for the purposes of arena infrastructure seems like a better deal than the buyout that state representatives arranged for FirstEnergy. Potentially, fewer lawmakers will go to jail.

The power of the billionaires is strong, though. Campaign contributions! State legislators have responded to the Haslams’ desires by replacing DeWine’s gambling tax proposal with a $600-million bond issue written specifically for Dee and Jimmy and dedicated to the dome that will be placed on land they control out by the airport.

Asked if he would veto, DeWine punted.

“We haven’t seen the House budget yet, let alone the Senate,” DeWine said. “And then there’s a thing called a conference committee. And then there’s some discussions that might occur between the speaker and the Senate president and the governor. We’ve got a long way to go.”

Profile in courage!

The Haslams are worth about 10 times more than the sports-gambling industry gouges out of Ohioans in any given year. But they want the $600 million bond issue (on which the state will pay interest); and they want $178 million from Cuyahoga County, which is supposed to come from tax increases (bed taxes, income taxes, parking taxes, property taxes and rental-car fees); and they want $422 million from Brook Park, which is supposed to come from a similar suite of tax increases, including an admission tax.

The Haslams will pay half of the estimated $2.4 billion cost to build the stadium. Ohioans will pay the other half. And then the Haslams will use their dome as an anchor for a “mixed-used development.”

The Haslams’ spokespersons have explained how this is a great investment for the state, county and Brook Park. They claim their project will generate enough economic activity to negate the debt service on the bond issue.

Cuyahoga County officials, among others, are skeptical that the numbers work.

At a press conference two weeks ago, a county commissioner described the Haslams’ plan as one that exposes the public to more risk than the billionaires. The commissioner, Chris Ronayne, questioned the idea of subsidizing a competitor for Cleveland’s sports, entertainment and convention businesses.

“Haslam Sports Group relies on lofty projections and new tax sources to fund their unprecedented ask of $1.2 billion in public dollars for their stadium,” Ronayne said. “HSG has asked the county to risk its creditworthiness and its general fund on this project. That is risk we should not bear.”

Cleveland city officials who worked with the Haslams on renovation plans for the current stadium (which is soon to host Lionel Messi, if his adductor muscle is healed, and he actually shows up) are feeling like they’ve been played. They’re going after HSG in court via the Modell Law. The Haslams have countered with a suit of their own, which claims that the Modell Law does not apply in this case. There are so many ironies intertwined – Art Modell moved the Browns and hence the law, which Columbus used to save the Crew, which benefited the Haslams – it blows the mind.

Cleveland Mayor Justin Bibb issued a fiery statement, which said, in part:

The Haslam scheme pays for itself on the backs of fans. The Haslams need to raise your taxes, make it more expensive for you to attend games, and steal events away from downtown Cleveland to pay for their stadium. The Haslam stadium ploy raises more questions than it answers and makes wild assumptions that will crush taxpayers. Their scheme relies on average ticket prices nearing $700, parking rates north of $100, increasing taxes for hotels, parking, and rental cars, and the assumption thousands of people will pay high rent to live in luxury apartments in the shadow of the airport.

For the fans!

The Browns sold out all their games in their Cleveland stadium last season. Their record was 3-14.

The House is expected to release its rewritten budget on April Fool’s Day. A vote could come as early as April 9.

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