CINCINNATI — For the first time in the history of Paycor Stadium, the Cincinnati Bengals appear willing to pay for some of their operating expenses.
Or at least they were eight days ago, according to Tom Gabelman, the attorney who has worked on every Bengals lease amendment since 1997.
Hamilton County fired Gabelman after commissioners complained to Hamilton County’s prosecutor about a lack of communication and failure to “focus on the results they were desiring” from the former Frost Brown Todd partner.
Gabelman told the WCPO 9 I-Team Friday the Bengals were on the verge of making major concessions.
WATCH: What we might see in the Bengals' next lease
“Last Friday, I had scheduled a meeting for 10 o’clock with Jeff Aluotto, the county administrator, and Roger Friedman, assistant prosecutor, to basically go over the term sheet that (had) all of these provisions that would be in the lease,” Gabelman said. “They represented, and I mean this, a paradigm shift from that old lease, a paradigm shift in how we are handling every single aspect of it.”
Here's a summary of lease terms Gabelman said the Bengals were close to approving:
- A comprehensive agreement that replaces, instead of extending the team’s original lease, signed in 1997. That could be significant because the original lease includes parking requirements and height restrictions on buildings that many have criticized as an impediment to development.
- The new contract would last 10 to 20 years, depending on how much funding the county and the team are able to attract from the state of Ohio. An April 29 memorandum of understanding calls for Paycor Stadium’s $830 million renovation project to be funded by “fair and equitable contributions” from the state, the county and team/NFL.
- The Bengals are likely to contribute more than the $120 million they promised in the April 29 MOU, but that amount could include $44 million already spent by the team since 2018. To get to 33% of $830 million, the Bengals would have to spend $273 million.
- The Bengals wouldn’t pay rent under the new lease, but it has shown a willingness to fund a portion of the stadium’s operating and maintenance expenses. Gabelman said those items cost the county $13 million last year. He expects the team to pay more than $1 million annually toward those expenses.
Gabelman stressed the financial details will be finalized last because they depend on how the Paycor renovation project fares in Columbus.
"I know where I was driving with it. I can’t say where they ultimately end up," Gabelman said. "I know we had the county very well positioned that somebody could pick it up and run and get this deal done."
The I-Team asked the Bengals to confirm Gabelman's assessment of lease terms. The team released a statement from Duane Haring, director of stadium and event operations.
“We can affirm that the parties were far down the path on an agreement, very close on terms such as a 10-year extension with an additional 10 years of options for a total of 20 years,” Haring said. “The team has offered to invest $120 million in stadium improvements and contribute in other ways. We remain focused on reaching an agreement by June 30.”
Those details are a good sign that “the MOU was indeed linked to a longer-term deal,” said Joe Cobbs, lead researcher for the Institute of Sports Business & Event Management at Northern Kentucky University. “It’s nice to see that this is moving along.”
Cobbs said the Bengals could get a public relations boost by scrapping their original lease.
“Given the controversy around the original lease, it’s probably good for both parties,” Cobbs said. “The Bengals took a lot of heat over time because it was a pretty favorable deal, compared to other deals. And the county also took a lot of heat for signing it.”
Although he’d like to see a longer lease term, Cobbs liked other elements of the lease terms, as described by Gabelman.
“If I had to say monetarily, the two biggest things that we were able to shift the team into doing is to make a very significant contribution to the renovation,” Gabelman said. “And then, going forward, saying, ‘You will also contribute to maintenance, operations and capital repairs.’”
The team and county are seeking $350 million from the state, while the Cleveland Browns already have Ohio House approval for a $600 million bond deal.
Both projects could be funded or derailed by the Senate. Ohio Gov. Mike DeWine, who favors a broader stadium funding approach financed by sports betting taxes, has hinted that might veto the Browns' proposal.
