2 days ago
Browns are happy to potentially get $600 million in state money for new stadium
The proprietors of the Factory of Sadness are happy with progress they're making toward building a new one.
Although the mechanism isn't clear, the Browns are hoping to get $600 million in state funding for a $2.4 billion venue to be built in Brook Park. Assuming the Art Modell Law doesn't get in the way.
On Wednesday, the team made Haslam Sports Group executive V.P. and COO Dave Jenkins available to reporters to discuss recent developments.
'We're very excited that the Senate chose to include $600 million in their version of the budget . . . but not nearly to the finish line yet,' Jenkins said. 'So, there's been three versions of $600 million dollars, starting with the governor, him putting it in first obviously signaled a desire at the state level to enable this project — seconded by the House, their version, and again, three different constructs.'
The state has until June 30 to finalize a budget that will raise the money by increasing taxes on gambling, issuing state bonds, or taking money from the unclaimed property fund.
Jenkins was also asked about criticism arising from the reluctance of ownership to privately fund the stadium.
'I think we've been pretty clear from the outset that it takes a public-private partnership to enable this project,' Jenkins said. 'And I think there's a bit of conflating of issues here. So to say that the $600 million going to us is created by pulling from other sources is, I think, a pretty unfair and inaccurate way of presenting it. So we defer to state leadership. Again, all three branches of government have signaled a willingness and a desire to enable this project, and we'll see what happens on June 30.'
But the $600 million that goes to the Browns necessarily could have gone elsewhere. Balancing a public budget is a zero-sum game. Less that goes to one column is more than can go to another.
The Browns still need to get $600 million in local funding to make it a true 50-50 public-private partnership. The county is out if the Browns insist on going to Brook Park, so they'll need to find that $600 million elsewhere.
Regardless, the Browns are optimistic that the $600 million from the state will happen.
"[T]here's three different ideas on the table now,' Jenkins said. 'So what happens . . . behind closed doors? I think those three branches of government will work hard — they've all said $600 million is OK for the project and they want to do it, and they want to enable the project. So I think they'll work collaboratively to find a final solution.'
There's still a lot more that needs to happen before the stadium can be built. Coming up with $1.2 billion in public funding is half the financing battle, and the Browns could be closing in on getting half of that.
