The Cleveland Browns have talked with state officials about investing in either a roughly $2.5 billion domed stadium outside downtown Cleveland or a $1 billion renovation of their existing lakefront stadium, but key lawmakers considering the idea say they believe it’s been misconstrued.
Sen. Matt Dolan (R-Chagrin Falls), chairman of the Senate Finance Committee and part-owner of the Cleveland Guardians baseball team, said the state would help the Browns build or renovate a new stadium but would not take money directly from the state’s general revenue fund.
“I don’t know if the Browns’ proposal has been accurately portrayed in the media,” Dolan told “Ohio State” in an interview. “What they’re really saying to the state is, look at our plan, look at the return on investment over the next 30 years. And what we’re saying is, if the state would give us their full faith and credit, and not write them a check, but issue them $600 million in bonds, the Browns can show us a rate of return that the state would actually benefit from this plan.”
“So it’s not the Legislature or the governor that’s going to write them a check. This is an innovative way to use the full faith and credit of the state,” Dolan said.
Dolan said that like any investment, state officials need to determine if it will actually pay off over the next 30 years. But if it doesn’t, Ohio taxpayers will be on the hook for $600 million. Dolan is still evaluating the matter, but in his words, the idea is a win-win.
“I think this initiative would be a win-win for both sides, but like any investment you decide to make, is there really a win-win,” Dolan said. “And the risk to Ohio is that if there’s no win-win, it’s going to cost the state of Ohio. Taxpayers are on the hook for that. It’s a $600 million bond. So we shouldn’t jump into this too easily.”
Stadium bonds are also being discussed in other states. The Chicago Bears have proposed building a $4.7 billion domed stadium on Chicago’s lakefront, which would include $900 million in bonds guaranteed by the state of Illinois. Stadium financing plans incorporating bonds are under discussion in Kansas to attract the Missouri Chiefs and Royals. And last year, Tennessee issued nearly $453 million in bonds to build a stadium for the Titans.
Municipal bonds are often used for stadium construction projects: A University of Chicago study found that 43 of the 57 stadiums built between 2000 and 2019 were funded with municipal bonds, totaling 75%.
