CINCINNATI — If nothing gets in the way between now and the time an 11-year lease extension is hammered out, the Bengals and Hamilton County are about to enter a bold new era of partnership.
And this has tremendous ramifications for the team, the county, downtown Cincinnati and anyone who enjoys what The Banks has to offer.
On Thursday, the Bengals and Hamilton County agreed to principal terms for a new lease that keeps the team in Cincinnati playing home games at Paycor Stadium through June 2036, with five separate 2-year additional options that could extend the lease through June 2046.
The agreement supports a reasonable approach to modernize the 25-year-old stadium at a time where other communities are faced with multi-billion-dollar new stadium projects.
So, what do the two sides get out of it?
The county commissioners can claim a better deal with the team this time around as opposed to the deal of 30 years ago.
The Bengals, as primary tenants, have agreed to pay 25 percent of needed stadium renovations, while the county will be left to cover 75 percent of the costs. This is down from an 88-12 percent split on maintenance costs in the previous lease. This also represents less public contribution when compared to the recent stadium improvement deals negotiated in Baltimore (Ravens) and Charlotte (Panthers).
In the end, Hamilton County will not pay more than $350 million, while the Bengals will pay $120 million, if no state funding is available. The renovations covered under this agreement are estimated to be completed in two to three years.
The Bengals remain responsible for “game-day costs” while still collecting 93 percent of gameday parking while seven percent goes to the county. The county also now has permission to engage a third-party to market non-game day use of the stadium, for events such as concerts (i.e. Taylor Swift, Cincinnati Music Festival).
The Bengals will pay $1 million in rent annually for the first three years of the 11-year lease, and $2 million annually after that.
The $470 million renovation project will maintain what the team says will be “a best-in-class NFL stadium” that attracts major concerts and events to Cincinnati. The Bengals will invest $120 million in the renovation project, covering 75 percent of new improvements to the stadium. The team and Hamilton County will continue to work collaboratively to secure meaningful funding from the State of Ohio to further support the renovation efforts.
The Bengals can now approach the state with terms and conditions in hand – or a lease if it is finalized – and apply for the remaining $400 million via the sports and culture fund around the state. The Browns have secured $600 billion in funding for their new stadium/training complex in Brook Park.
Why is that significant?
If the Bengals can secure close to the $400 million in funds from the state, they can move forward with the terms of the more substantive modernization of Paycor, estimated to be $830 million. This would include a new practice facility, an enclosure of the north end zone, new suites and a revamping of the concourse and other seating areas.
“The state dollars are a little bit in flux. We knew that,” Commissioner Denise Driehaus said. “So, what we’re working on now is something that’s less than ($830 million), because the state dollars aren’t in the stack right now. But we have the ability to expand and include projects were we to get the state dollars.”
The Bengals won’t be able to transform Paycor into SoFi or AT&T Stadiums. But they would be able to deliver a more suitable home for an NFL franchise they hope will compete for Super Bowls over the next decade.
“This is a significant day for the Bengals and Hamilton County as we secure the team’s future in Cincinnati,” said Bengals Executive Vice President Katie Blackburn in a statement Thursday. “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. We are proud to call Paycor Stadium our home and to keep our future here in Cincinnati, where it belongs.”
While the lease is far from finalized, the Bengals are as conservative as it gets when making public comments unless they are warranted by an expected or final result. In other words, the lease is expected to be simply a matter of time.
When Paycor Stadium opened in 2000, the Bengals and Hamilton County came together with a goal of transforming Cincinnati’s riverfront into a world-class sports and entertainment district.
The Banks was the result. It now generates over $2.5 billion in annual economic impact, with the Bengals driving over $1 billion in annual economic impact.
“Under a new deal, the Bengals and Hamilton County are poised to continue transforming the riverfront, driving economic growth and delivering unforgettable moments for fans for years to come in downtown Cincinnati,” Thursday’s statement from the Bengals read.
