CINCINNATI — More than $184 million in upgrades may be coming to Paycor Stadium with renovated suites and lounges, better concession areas, and improvements to the stadium plazas.
Hamilton County Commissioners had their first look at a new memorandum of understanding on Tuesday morning. It lays out a plan for the Cincinnati Bengals and the county to share the cost of these upgrades. The commissioners will vote on it next week.
Under the proposed agreement, the Bengals would spend $120 million to renovate East and West Club Lounges, upgrade all 132 stadium suites, improve concessions, and for stadium beautification projects such as plazas, entryways, and concourses.
Read more about the Paycor Stadium renovation plans below:
Paycor Stadium renovations plan by WCPO 9 News on Scribd
"The $120 million private investment from the Bengals and the NFL marks an unprecedented commitment in the history of Paycor Stadium. Never before has the NFL invested in our public asset, and never before have the Bengals invested so much," according to a statement from Hamilton County Commission President Denise Driehaus.
The team has obtained G-5 financing from the NFL. The loan program allows teams to borrow money from the league for stadium projects.
For its share, the county would spend $64.5 million on infrastructure projects such as new elevators, stairs, and escalators, suite seat replacements, glass refurbishment, electrical upgrades, and a new Junglevision control room.
In addition to those major capital projects, the county will spend $16 million more on "maintenance, operations, and capital repair obligations" as part of the lease.
Northern Kentucky University professor Joe Cobbs saw the deal as a positive first step. He teaches a course called 'Moneyball - The Economics of Sports.'
"We got at least an agreement where the team is contributing a significant amount of money, and we got to this point without huge ultimatums, which I don’t think serve anybody very well," Cobbs said.
Under the deal, construction could begin as early as 2026, with both sides starting design, engineering, and preconstruction work this year.
This would be the first phase of a $830 million renovation project for Paycor Stadium, with three to four phases rolled out through 2029 at an expected cost of $210 million per phase.
But who pays for the entire cost is still undecided. The proposed deal makes it seem as if the $830 million total renovation price tag will be equally shared between the county, the state of Ohio, and the Bengals/NFL, with "fair and equitable contributions" from all three parties.
Cobbs said he thinks the team should shoulder more of the cost.
“I would, as a taxpayer, like to see more coming from the team and the NFL. And I think there is precedent for that in some of the other agreements that are taking place," Cobbs said. "You’re getting to more of a 50-50 (split) or even greater contribution by the ownership group in recent stadium deals.”
The county and the team asked the state for $350 million last week.
Read the Bengals and Hamilton County Memorandum of Understanding below:
Bengals and Hamilton County Memorandum of Understanding by WCPO 9 News on Scribd
Their surprise request came one day after the Ohio House passed a budget that included $600 million in state bonds to help build a new domed stadium for the Cleveland Browns.
Cobbs said the timing of this new deal between the county and the Bengals is likely related to the Browns' success in the state legislature for their own stadium money.
"I think the Bengals and Hamilton County are looking to the state’s consideration of allocating money to Cleveland and saying, ‘we need to put something together here before the state allocates all of this money to Cleveland,'" Cobbs said.
The request is now before the Ohio Senate Finance Committee.
The county and team plan to finalize an agreed-upon term sheet for the MOU by June 1, with a final comprehensive agreement by June 30.
Cobbs said he liked that a more comprehensive agreement is being considered, which he hopes will spell out financial terms such as rent that are absent from the memorandum of understanding.
The county's lease with the Bengals is set to expire on June 30, 2026, but the team could opt for five consecutive two-year extensions, the first of which they would need to decide on before or on June 30 of this year.
Without a deal or a lease extension, the county or the team could cancel the first phase of renovation projects.
"This marks a fresh, forward-looking approach to negotiating a new lease. Advancing a memorandum of understanding is a good-faith effort on both sides to keep momentum at the negotiating table. We are sending a clear message to the state that the county is working collaboratively to secure a long-term comprehensive agreement with the team," Driehaus said.
The county will rely primarily on the sale of bonds to fund its share of the capital project, that are secured by the county’s ½ percent sales tax approved by voters in April 1996 for the funding of the Stadium.
But a new advocacy group is trying to convince the county to spend sales-tax dollars on a new arena to replace the aging Heritage Bank Centerand lure major concerts and sporting events like the NCAA Final Four.
