The Cleveland Browns have talked to state officials about investing in either a domed stadium outside of downtown Cleveland that could cost nearly $2.5 billion, or a billion-dollar renovation of the existing stadium on the lakefront. But a key lawmaker looking at the idea says he thinks it’s being misunderstood.
Sen. Matt Dolan (R-Chagrin Falls) is the chair of the Senate Finance committee, and a part owner of the Cleveland Guardians baseball team. Dolan said the state would be a partner in a new Browns stadium or a renovation, but not with direct money from the state's general revenue fund.
"I don't know that that the Browns' offer is being accurately portrayed in the media," Dolan said in an interview for "The State of Ohio". "What they're actually saying to the state is, look at our plan and look at the return on investment over the next 30 years. And what we're saying is, if the state would give us the full faith and credit and go bond out $600 million, not write a check, but bond out those dollars, the Browns are saying we can show a return where the state actually will benefit from this."
“And so it's not the legislature or the governor writing them a check. It's an innovative, innovative way to use the full faith and credit of the state," Dolan said.
Dolan said like with any investment, state officials would need to determine if there’s a real return over the next 30 years. But if there isn’t, Ohio taxpayers would be on the hook for $600 million. Dolan says he’s looking into it, but that the concept is, in his words, a win-win.
"I think the concept's a win-win. But like with any investment you determine, is there a real return?" Dolan said. "And the risk for the state of Ohio is if there is not a return, then we need the state of Ohio. Taxpayers are on the hook for that, the bond of $600 million. So you do not jump into this lightly."
Bonds for stadium projects are being discussed in other states. The Chicago Bears have proposed a $4.7 billion domed stadium on the city's lakefront that includes $900 million in Illinois-backed bonds. A stadium funding plan featuring bonds is being discussed in Kansas to lure in the Chiefs or the Royals from Missouri. And last year Tennessee issued nearly $453 million in bonds for a stadium for the Titans.
Quite often municipal bonds have been used for stadium projects. A study from the University of Chicago found 43 of the 57 stadiums built between 2000 and 2019 - a total of 75% - were funded by bonds.
