Haslam Sports Group Executive Vice President, Chief Operating Officer Dave Jenkins (6.4.25)
What do you think of the plan by the Senate to use funding from the unclaimed funds to help pay for the project?
“We’re very excited that the Senate choose to include $600 million in their version of the budget, appreciative of the leadership of President (Rob) McColley and Chairman (Jerry) Cirino, but not nearly to the finish line yet. 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. So, a lot of time between now and June 30 but looking forward to it ultimately being included in the state’s budget.”
I mean, the team is facing a lot of criticism for pulling funds from different areas as opposed to the Haslam’s just backing the project itself. How would you respond to that criticism?
“I think we’ve been pretty clear from the outset that it takes a public-private partnership to enable this project. 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 30th.”
With the county backing out, where does that leave you? How do you fill that gap of the $600 million that the county says it will not produce?
“So the original $2.4 billion stadium budget, we were seeking a 50/50 public-private partnership. That means we take on 1.2 billion plus the overruns, in addition to the private development itself. So, we will be in over $2 billion into the project. This is a massive economic development project. That leaves the public side of the equation, $600 million of that, hopefully are state dollars, which leaves $600 million to be achieved locally. What we asked the county to do initially was to issue bonds – use their credit rating to issue $600 million of bonds that are largely repaid by Brook Park specific tax revenues. It was never a true $600 million ask of the county. They have since made it very clear they’re not going to play if we go to Brook Park, which lessens the amount that Brook Park can issue in bonds themselves or through some other authority. So, we are working to solve and have zeroed in on a solve for the remaining balance that otherwise could have been available if the county had issued the bonds.”
How does today feel?
“It feels good. It feels really good. This is eight to 10 years in the making. You know, at one point we actually had looked at moving training camp to Columbus, which would have taken the last free summer touch point away from our fans. After a lot of thinking seven, eight years ago, we decided, let’s redirect that energy and those thoughts to here. Bought our first house back behind that shed eight years ago and then undertook a significant amount of planning to get where we are today. So, it’s been a tremendous partnership with the city of Berea and a lot of other stakeholders to enable the project.”
Going back to the criticism from the county, have you had any new discussions with Chris Ronayne? He has been very vocal about his opinions and claims on the new dome.
“We have not had any recent conversations with Chris Ronayne. Look, it’s a polarizing issue, obviously. It’s been a fight to get him to our side of the table or to get to his side of the table. We’ve had a lot of success. We’ve worked really effectively with three branches of state government. We’ve received an endorsement from the Greater Cleveland Partnership of the project and the impact it would bring. We’ve received recent endorsements from the Building and Trades Union, from the FOP (Fraternal Order of the Police). So it’s a little bewildering that we haven’t been able to get there with the county executive. But we remain committed to a local solve for what’s best for the community.”
And how confident are you that the senate’s new plan will pass?
“I think what happens between now and June 30th, is there’s three different ideas on the table now. So what happens behind in session, behind closed doors? I think those three branches of government will work hard – they’ve all said $600 million is okay 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.”
Do you have a preference among those three?
“We don’t have a preference. We defer to state leaders on what’s best for their constituents, what’s best for their electorates and what’s best for the state. We’re being held accountable in all three scenarios to driving the results that our model says the project will drive, which results with incremental tax revenues at the state level that will repay the $600, regardless of the form that it comes in. And we’re prepared to do that.”
So the county doesn’t help you, but they’ll gain tax revenue from everything that you do, right? How does that work?
“Yeah, so that’s a great point. Great question. Again, our original ask of the county was to issue the $600 million in bonds, establish a 1% incremental bed tax that would create some upfront bond ability. And then there is an additional $589 million in our model of unencumbered, meaning unpledged revenues that the county would earn from the project. So, there is a significant amount of upside, potentially for the county whether they participate or not. So, they do stand to earn from the project.”
So my question is, won’t they get that money anyway if they don’t?
“Yes, they will.”
Why not just do a simple headquarter expansion? Why do a mixed-use development?
“First of all, we have a great headquarter. We put a lot of money into this facility and modernized it. And with 18 to 20 new acres, you can do a lot more than just expand our facility. You can do things that truly impact the community, like the community field, truly bring economic activity to Berea with the hotel and with the housing. So, we think this has a more holistic impact on the community.”
Dave, you said you have a local solve, that you’ve zeroed in on a solution for filling the gap. If the county indeed does not participate in the project, what can you tell us about that?
“It’s a private solve, so it means we’re taking on more. We’re taking on more risk. So that’s where it would ultimately be.”
So you would fill the gap with private money?
“Yes.”
What about the sin tax? Because the Senate said yesterday, you know, the sin tax could be adjusted. The county and the city say, as it stands now, the Browns would get nothing in Brook Park. What’s your take on that on what the Browns doing about the sin tax?
“The sin tax is the most established and proven form of tax revenues, to service capital repairs. So it’s much needed by the community, not just by the Cleveland Browns, but by Gateway as well, which includes both the Cavs and the Guardians. We are for or three team solved. That’s the way it’s been for decades now. We have been told by the county executive, if we go to Brook Park, the county, the sin tax revenues would not follow. I don’t think it’s quite that easy. It has to be enabled at the state, it has to then be put on the ballot by county council, which is often the forgotten entity in all this back and forth. And then it has to either clear a veto by the county executive, which can be cleared by a super majority of county council and then get voted on by the electorate. So, it’s way more nuanced than how it’s being presented, but we do see it as the most viable solve for capital repairs long term for the community.”
Unless I’m reading this wrong, I think this was originally a 30,000 square foot mixed use. Now I think it’s 15,000 at least. In the press releases I’ve seen you speak, has that changed at all?
“It’s always been 45,000 square feet. The office building. There’s five assets, I’d say really there’s the office building, which is 45,000 square feet. I’m not sure where you saw the 30,000, but it’s 45,000. It’s been two apartment buildings totaling 150 units. It’s been the 140 room hotel and then the community field as well. And then potentially long term, then there’s some sort of field house type asset that could be added. So two years for completion.”
Two years?
“Yes.”
That’s quick.
“Yeah, it’s really quick.”
Ambitious?
“It’s ambitious, but we’re breaking ground, so we’re underway. And what will be exciting is all the assets outside of. We did expedite the office building, but all the assets coming online at once will be a pretty fun experience.”
And the original price tag was 150, I think you said 150 to 200. Have costs gone up since the announcement?
“Well, you have cost, you have tariffs, you know, there’s. You could do more, you could do less in the project. So, we’re just putting a range on it. But I think we’ve always said $150 to $175, now it could be more.”
I was just going to say, what does this say about your commitment to Northeast Ohio?
“Look, I think the combination of the Berea project, the significant private investment in Brook Park, the stated intention to stay in Northeast Ohio and to invest in it. The Haslam family has invested over $150 million just in philanthropic giving since they acquired the team in 2012. So, enormous impact as a family, enormous impact as an organization, and we’re here to stay. So, we’re excited about what both these projects can do for the community.”
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