CINCINNATI — With all the drama of a fourth-quarter rally, Hamilton County and the Cincinnati Bengals have signed a new lease agreement that will keep the team at Paycor Stadium for at least 11 years and lead to $470 million in stadium improvements.
The deal was announced within hours of a final deadline on which the team had the option of extending its old lease for two more years.
It followed a dramatic threat from the Bengals that could have left the county without a lease while it dealt with more than $60 million in new payment demands from the team.
"Today we are delivering on our promise to the taxpayers of a new and better lease that protects their interest and does not raise taxes,” said Hamilton County Commission President Denise Driehaus, in a press release. “We’ve capped the county’s costs and secured real investment from the Bengals and the NFL.”
Bengals Executive Vice President Katie Blackburn thanked the county for “demonstrating leadership and moving the county forward. This new lease keeps Paycor Stadium on par with other communities across the country and a focal point for Cincinnati’s riverfront. More importantly, it solidifies the future of the Bengals in Cincinnati, our beloved home, for many years to come.”
The lease announcement follows a two-day flourish in which both sides traded last-minute lease proposals, with the team seeking concessions for parking spaces that could disappear with future riverfront development.
At a special meeting of commissioners Friday, Driehaus said the Bengals signed an option to extend its original lease for two years. But then, the parties went back to the bargaining table.
Ultimately, they reached a compromise on the parking issue, while modifying other lease terms that commissioners approved by a 2-1 vote. Alicia Reece voted no.
"The agreement now sets out various thresholds for miminum parking spaces for the team’s use," Aluotto said. "It provides a cap on the county’s liability related to any revenue make up the county would owe for falling below those counts."
A comparison of Thursday's lease, released by the county, and the final lease approved by commissioners, shows the county's cost increased significantly in the last 24 hours.
Thursday's lease document said the county would reimburse the team for up to 350 spaces lost to development in each football season, with a reimbursement cap of $175,000 per season.
The finalized lease said Bengals patrons will have a minimum of 3,460 spaces available to them and the amount of reimbursement is capped at $875,000 per season.
By agreeing to the higher cap, the county likely avoided millions of dollars in additional expense from the Bengals' decision to exercise a two-year extension of the old lease.
That's because the old lease has clauses requiring the county to reimburse the team for operating expenses and pay for "Level I Enhancements" that 14 other stadiums have, but the Bengals do not.
With its letter exercising the renewal option, the team sent a $12 million bill for operating expenses in the 12 months ending June 30.
And they demanded $50 million to install six new field-level club suites in the north end zone and reimbursement for two upgrades it's already installed. A "Grab & Go" concessions area cost $1.7 million and LED video boards installed in 2023 came with a price tag of $4.9 million.
The team said it was entitled to reimbursement of those 2023 improvements because they were not available in 14 NFL stadiums when its original lease was signed in 1997.
As previously reported, the new lease calls for the county to pay $350 million for dozens of improvements between 2025 and 2027, including elevator and escalator upgrades and replacement of all general assignment seats, Wi-Fi and audio-visual systems. It also calls for renovation of retail spaces and the visiting team locker room.
The Bengals will spend $120 million to renovate club lounges and luxury suites, according to the lease.
Other previously announced terms remain unchanged in the new document, including:
An 11-year term, expiring June 30, 2036, with a series of two-year options that could extend the lease to 21 years.
The team and the county agreed to conduct a stadium review by 2032 that could lead to discussions about a new stadium.
The team agreed to pay rent starting January 1, paying $1 million for three years, $2 million in year four, with future rent rising by up to 2.5% each year after that.
The county agreed to make capital contributions to the stadium in the same manner, but it’s initial payments will start at $3 million, double to $6 million in year four, then rise at up to 2.5%.
While it’s a day of celebration for the Bengals and the county, the work isn’t done.
Two companion agreements to the document have yet to be finalized: A “construction disbursement agreement” and a “community benefits agreement,” both defined as “subsequent agreements” in the new lease document.
