Cleveland Teams Would Get Tax Revenue Based on Performance: Proposal

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CHICAGO -- Cuyahoga County, Ohio Executive Ed FitzGerald wants Cleveland's professional sports teams to earn on the field or court some of the tax revenue earmarked for upkeep of their stadiums.

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FitzGerald, a Democrat challenging incumbent John Kasich for governor, proposed that 20% of so-called county sin taxes tax on alcohol and cigarettes be distributed to Cleveland's three teams based on their performances.

He called it a "win tax."

"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," FitzGerald said in a statement.

In a press conference with local reporters, he said Cleveland fans deserve a better return on their investment. The city has gone without a championship win for 50 years, the longest in the nation, according to FitzGerald.

"We love these teams, we're loyal to these teams and we're committed to maintaining these facilities," he said, according to local reports. "But we can also try to demand something a little bit better than we've gotten over the past 50 years."

He also said teams' performances are tied to economic performance, arguing that when LeBron James left the Cavaliers in 2011, tax collections dropped.

Cuyahoga County voters in May approved a 20-year extension of the cigarette-and-alcohol tax to pay for maintenance at publicly owned FirstEnergy Stadium, Progressive Field, and Quicken Loans Arena, where the Cleveland Browns, Cleveland Cavaliers, and Cleveland Indians play. The tax is expected to generate roughly $260 million through 2035.

FitzGerald's proposal calls for 80% of all the sin tax revenue toward the stadiums' upkeep to ensure they remain "top-tier venues," he said. The remaining 20% would be reserved for "performance bonuses" presented to the team or the teams that perform well each year. That could total $50 million through 2035, he said.

"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," FitzGerald said.

The county would establish a committee made up of seven Cleveland sports fans that would craft the criteria defining good performance and would recommend how to allocate the money under the proposal.


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