FirstEnergy Corp.’s stadium naming rights deal with the Cleveland Browns is worth $102 million over 17 years, sources leaked this afternoon.
Chuck Jones, president of FirstEnergy Utilities, had already acknowledged that the naming contract would be for 17 years and would last for the remainder of the lease the Browns have with the city of Cleveland, which owns the stadium. The specific financial details were not revealed in previous interviews.
The $6 million per year that the Browns will receive over the next 17 years puts them in the middle of the pack, as far as naming rights deals go. Others of note, according to Bloomberg Businessweek:
Detroit’s Ford Field, 20 years: $40 million ($2 million/year)
Edward Jones Stadium in St. Louis: 12 years, $31.8 million ($2.65 million/year)
Heinz Field in Pittsburgh: $57 million over 20 years ($2.85 million/year)
Baltimore’s M&T Stadium: 15 years, $75 million ($4 million/year)
Indianapolis’ Lucas Oil Stadium: 20 years, $122 million ($6.1 milllion/year)
Lincoln Financial Stadium in Philadelphia: 21 years, $139 million ($6.6 million/year)
One hundred percent of revenue from the deal will go to the Cleveland Browns, i.e. the city of Cleveland won’t get a dime. That annoying stipulation was drawn up in the lease agreement, which favors the franchise in a pretty total way. The lessee is entitled to all revenue from stadium operations excluding city events.
At a meeting of city council’s finance committee on Monday, Frank Jackson’s finance director Sharon Demas cooly answered questions related to the $135 million that Cleveland still owes on the stadium. For anyone who cares, the remaining debt will be refinanced by Wells-Fargo, according to Demas.
This article appears in Jan 16-22, 2013.
Who the hell wrote this lease?
**** this ****ing bull****. Haslem just made $102 million dollars and he didn’t have to do jack ****. Meanwhile, the city owes $135 million still for this ****ing stadium, but we won’t sniff a dime of the ****ing $102 million that just rolled in. Is anyone else sick of Cleveland ****ing bending over and taking it in the ass from these big business guys? Gilbert gets his ****ing casino, and the only money he can funnel back to the city is free ****ing tickets to a ****ing Cavs game that no one wants to ****ing go to because the team sucks ass? Meanwhile, food places downtown start to fold because they can’t compete with a $15 all you can eat dinner buffet that gives you free gambling dollars and parking. Now Haslem comes in as this ****ing savior of the city on his white horse, shoves his arm up the city of Cleveland’s ass, and pulls it out with $102 million ****ing dollars in his hand while he laughs and rides off to the bank. Seriously, **** this ****. This is as ****ed up as it comes. ****.
@Adam…Eeeeeeeeeyup…Well put dude….
And what did we get?
Chud…
Cannibalistic- Humanoid- Underground- Dweller….
@Adam – “he didn’t have to do jack” You mean he didn’t have to do jack other than pay $1 Billion to buy the team and to pay rent every year to the City under the lease (Scene – Can you tell us how much is the annual rent?). He is getting $6 million a year as a return on $1 Billion investment – that’s 0.6% a year return. Let’s hope he finds enough other revenue sources to invest in the team while still making a return. All I want is the Browns not to suck.