CINCINNATI -- Hamilton County and the Bengals took a major step toward keeping the NFL franchise based in downtown Cincinnati.
On Thursday, the board of county commissioners approved the tentative framework for a $470 million agreement that will keep the team in its current home of Paycor Stadium through at least 2036. The money will be used to renovate the stadium that opened in 2000 on the banks of the Ohio River.
The deal comes after talks had ramped up significantly ahead of the pending June 30 deadline for the team to extend its current lease that expires after the 2025 season. The financial terms approved Thursday will give the county and the Bengals additional time to finalize the next lease agreement between the two sides.
In a statement, Bengals executive vice president Katie Blackburn said it was a "significant day" for both the franchise and Hamilton County.
"We thank the Hamilton County Commissioners for supporting this agreement to ensure Paycor Stadium remains an excellent venue and a focal point for Cincinnati's riverfront," Blackburn said. "We are proud to call Paycor Stadium our home and to keep our future here in Cincinnati, where it belongs."
The county board voted 2-0, with commissioner Alicia Reece abstaining. Dating back to at least last year, Reece has expressed concern about the funding structure for a potential new stadium and the county's financial commitment compared to the Bengals. In the deal approved Thursday, Hamilton County will be capped at $350 million. The Bengals and the NFL, as part of the league's G-5 loan program, will contribute $120 million.
"Essentially, this is a loan from the NFL," said David Abrams, a consultant for Inner Circle Sports who was contracted by the county for this negotiation. "The NFL will be contributing, but it is basically on the back of the team to make good on their promises to the league."
Including 2025, the proposed new lease will have 11 base years that will run through June 2036. There will also be five two-year extension options, which also existed in the original lease the county and the Bengals signed in 1997.
This one, however, contains a unique wrinkle. Previously, the team exercised full control over each option. In the current proposal, Hamilton County can execute the first option automatically if the Bengals rank 24th or better in total revenue among the league's 32 teams. This lease also forces the Bengals to pay $1 million in rent in each of the first three years and then $2 million in each subsequent year.
The projected total cost of $470 million is a fraction of what was envisioned last year when the comprehensive renovation plan was introduced.
MSA Sport unveiled a potential renovation of $1.2 billion that featured stadium upgrades and a new team headquarters and training center at the site of the team's current practice fields across from Paycor Stadium. The project cost further dropped to $830 million before Thursday's proposal unveiled a further drop in the final cost that limits taxpayer funding.
"Compare this to other renovations going on around the country, this is probably a lower cost of initial capital than just about anywhere that I'm working in the NFL," Abrams said.
Throughout the last two major plans, the Bengals' financial commitment has remained at or around $120 million. On Thursday, the county's presentation noted that its funding of 75% of the total cost was lower than in other cities such as Charlotte or Baltimore. The Carolina Panthers' current stadium construction is subsidized by 81.25%. The Ravens are committing just $20 million to its renovation of M&T Bank Stadium that will cost around $490 million, with the remaining money coming from state funding.
The Bengals and Hamilton County have sought state funds for Paycor Stadium renovations. However, none have been allocated yet. The Cleveland Browns are projected to receive $600 million in state dollars for their project that also includes $2 billion in private funding.
But while all of the final details, including ultimate execution of the lease, are yet to be ironed out, Thursday marked a significant moment in what was termed as a "spirited" discussion between the Bengals and county officials.
"I really didn't think we'd be here today at all," Hamilton County commissioner Stephanie Summerow Dumas said at Thursday's meeting. "Not that I was negative, but things were just going in different ways, it was described that way. I'm just really happy about being here. Our team and their team have worked hard to become a winning team."