FitzGerald Proposes “Win Tax” Bonus for Cleveland

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Rich Luchette: (216) 698-5637, (216) 797-0931, or rluchette@cuyahogacounty.us




Incentive-based allocation of public resources would encourage on-the-field performance, help maximize economic benefits

CLEVELAND– Cuyahoga County Executive Ed FitzGerald announced today that he will submit legislation to County Council that would reserve 20% of public revenues for stadium maintenance and distribute it between the Browns, Cavaliers, and Indians based on their success each year.

"Cleveland's pro sports franchises are part of our identity and civic pride, and they serve as a rallying point for men and women of all ages and backgrounds,” said FitzGerald. “When voters approved Issue 7 last month, their minds committed to support world class facilities, and their heart hoped for Cleveland to be a championship city once again. The proposal I am announcing today is intended to operationalize the intent of Cuyahoga County residents and reward our local franchises for fielding competitive teams each year."


When the sin tax extension takes effect next year, FitzGerald’s proposal will continue to direct 80% of all sin tax revenues towards repair, maintenance, and improvement to ensure Cleveland’s three major sports facilities remain among the best in the nation. Using industry-standard measures for evaluating facility needs and maintenance, as well as the requests submitted by each franchise during the sin tax debate, Cuyahoga County will ensure that the FirstEnergy Stadium, Quicken Loans Arena, and Progressive Field remain top-tier venues for another generation.

The remaining 20% of sin tax revenues would be reserved for performance bonuses presented to the team or teams that perform well each year. The “Win Tax” bonus is designed to reward the organizations that commit themselves to giving fans a winning team and generating economic benefits for the Northeast Ohio economy. Based on projections of future sin tax revenues, the Win Tax bonus will make more than $50 million available for justified capital improvements.

“Cleveland’s sports fans wear their hearts on their sleeves every year, and they deserve to know that their tax dollars are being spent in a transparent and accountable way to support our professional sports franchises,” added FitzGerald. “I am hopeful that my administration can work with County Council to get the job done for all of Greater Cleveland.”

 In order to determine the standards for awarding Win Tax bonuses, the County will establish a Fan Advisory Network (FAN) consisting of seven Cleveland sports fans who reside in Cuyahoga County. The FAN will establish criteria for rewarding good performance and have the ability to make recommendations on allocating funding based on win percentage, conference standing, or other metrics. Applications for participation on the Fan Advisory Network will be made available at www.cuyahogacounty.us once the proposal is enacted.

In addition to requiring accountability, FitzGerald’s proposal demands transparency by requiring that all work performed on the three major sports facilities is performed subject to a County Community Benefits Agreement – all contracts and capital requests will be maintained as public records.


  
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