CLEVELAND — The City of Cleveland and Haslam Sports Group are making amends, ending their legal battle over the proposed Browns stadium in Brook Park.
On Monday afternoon, Cleveland Mayor Justin Bibb and Browns owners Jimmy and Dee Haslam held a joint news conference at City Hall. They announced the broad terms of a settlement deal that calls for Haslam Sports Group to pay $100 million over 15 years to help Cleveland realize its dream of redeveloping the Downtown lakefront.
Watch the full press conference:
Bibb called the agreement "one of the most significant settlements in the city's history."
Cleveland and Haslam Sports Group agreed to dismiss their dueling lawsuits over the Brook Park move - permanently ending a fight over the state's so-called Modell law and the team's lease at the existing, city-owned stadium. The city will also drop its appeal of the Ohio Department of Transportation's recent decision to approve an aviation permit and a height waiver for the suburban stadium project.
“Sometimes deals just take a while," Jimmy Haslam said, adding that he reached out to Bibb directly after recent conversations with U.S. Transportation Sean Duffy in Washington, D.C., about the Brook Park development and a major renovation plan for Cleveland Hopkins International Airport, just west of the future stadium site.
"I felt there was an opening there for us to figure out what's a win-win for the city and the region. ... As someone who spent 10 years in business before I was elected mayor, the best deals get done by face-to-face conversations," Bibb said. "And so I went over to Jimmy's house on Friday. We had two Cokes. And we struck a deal."
Cleveland will get a quarter of the settlement cash this year.
The $100 million will be split into four buckets:
An up-front payment: Haslam Sports Group will pay the city $25 million by Dec. 1.
Demolition money: The anticipated cost of tearing down the existing stadium and getting the land ready for development is $30 million. Haslam Sports Group has agreed to pay that bill.
Installment payments: Haslam Sports Group agreed to pay the city $5 million each year from 2029 through 2033. The total will come to $25 million.
Community benefits investments: The settlement also calls for Haslam Sports Group to spend at least $2 million a year on "community benefits projects" for a decade, starting in 2029. The total investment will be $20 million. The Haslams and the city will have to agree on those projects.
The deal doesn't eliminate all the hurdles for the Browns on their road to Brook Park.
They're still working to finalize funding for the $2.4 billion enclosed stadium, which will be paid for with a mix of public and private money. And there's an ongoing lawsuit over the state's plan to tap unclaimed funds - missing money from people's old bank accounts, insurance payouts and other sources - to provide a $600 million grant for the stadium.
But the settlement with Cleveland is a major step forward, ending a costly and time-consuming legal fight.
Haslam Sports Group aims to break ground for the stadium in the spring, with the goal of opening the building and the first phase of a mixed-use development around it in 2029. Plans for the stadium district call for hotels, apartments, retail, parking, a smaller event space and, eventually, office buildings.
"This is a marathon, and it's not easy, and it's complicated due to its size ... the public-private partnership," Jimmy Haslam said on Monday. "I'd say this is a significant hurdle to get by. We were always confident we'd work it out one way or another."
He said Haslam Sports Group always has had two goals: Taking care of the fans and doing what's best for Northeast Ohio.
"We think we fulfilled those goals," he said. "And I can't tell you, after a bumpy time period ... how excited we are to make this investment in the City of Cleveland."
Bibb, who is up for reelection in November, said he believes the city put up the "right fight" to protect taxpayers and get an exit deal that will help to reshape the Downtown waterfront.
"I know in this town change is very hard," Bibb said. "We don't like change sometimes in Cleveland. But ... we've had plan after plan after plan about lakefront development in the city. Finally we have the resources, the collaboration and the political will to make that plan a real reality. And that's my commitment to the residents of Cleveland and our businesses, as well."
Cuyahoga County Executive Chris Ronayne released the following statement on the settlement:
"From the beginning, I have said a stadium relocation is bad economic policy that will have negative impacts on our region. My Administration has not and will not financially support a move out of Downtown Cleveland. We are now focused on mitigating negative impacts the stadium project will have on our suburban communities and Cleveland Hopkins International Airport."
The settlement comes after a yearlong court battle.
In October 2024, Haslam Sports Group sued the city in federal court. That lawsuit challenged the validity of the Modell law, a state law designed to make it harder for pro sports teams to leave taxpayer-supported facilities.
RELATED: Browns sue city of Cleveland over Modell law as stadium battle heats up
In January, Cleveland filed a lawsuit against the Browns in state court. The city's lawyers argued that the team was violating the Modell law and the existing stadium lease by preparing for a move to Brook Park.
RELATED: 'You can't take the money and run.' City of Cleveland sues the Browns over Modell law
In June, state lawmakers undercut Cleveland's position when they changed the wording of the Modell law, which now only applies to teams that are looking to leave Ohio.
RELATED: State lawmakers add change to Modell law into budget, aiding Browns move to Brook Park
The federal court judge never held a hearing. The state court judge held only one. Now, both cases will be dismissed.
The city and Haslam Sports Group said they'll work to support each other's priorities, including planning for roads and other infrastructure around Hopkins and the future stadium site.
"We'll continue to work with the Browns, HSG, the FAA and our leadership team at the airport to ensure that not only will we have a best-in-class domed stadium in Brook Park but that our nearly $2 billion dollar modernization of the airport won't be injured as well," Bibb said.
In a news release, the parties said the settlement also calls for working together to advance lakefront development and the eventual redevelopment of Burke Lakefront Airport, which the mayor hopes to close.
"I know there's conflicting views, and there's strong emotions on both sides," Jimmy Haslam said of the debate over moving the Browns off the lakefront. "But I believe a rising tide lifts all boats."
Council reaction
The settlement came as a last-minute shock to Cleveland City Council members.
Council President Blaine Griffin said the mayor called him at 4:05 p.m., less than 30 minutes before the press conference, to let him know a “fair deal” had been made with the Browns.
“I've been hearing a buzz all day from different people that it was going to be something huge. However, nobody would divulge those details,” Griffin said. “I wish council would have had more of an opportunity to deliberate and have a conversation with the mayor.”
Griffin said that if such a conversation had taken place before the announcement, the mayor would have seen that many council members were not on board.
“They don't believe that this is enough,” Griffin said of his colleagues. “Our attorneys are going to advise us on what our legal strategy is, but more importantly, we just want to make sure that the residents of the city of Cleveland get a good deal.”
He said Haslam Sports Group’s commitment of $100 million isn't enough, compared to what the city has spent over the years to build and maintain publicly-owned Huntington Bank Field.
“I just think it's unfortunate, when a city has shown how much loyalty we've had to an institution and to watch that, you know, potentially crumble overnight is really sad for the city of Cleveland,” Griffin said.
And he wants to know where the $30 million cost estimate for demolishing the existing stadium came from.
“I've heard numbers as high as $50 million,” Griffin said.
Though the Bibb administration and Haslam Sports Group have agreed on deal terms, the settlement still needs to be finalized.
Griffin said some aspects of the deal might require council approval.
“It's a little bit fresh and we're trying to look at all of our options," he said. "We, from what I understand, have some obligations to approve some things around the real estate of it. There are some other things as far as the financial incentives that we don't know if it's a mayoral prerogative or if council has a way to weigh in."
