How The Cleveland Browns Are Building A New Tech Forward Stadium

Key Concepts

• Brand Building: Shifting focus from solely game-day experience to year-round brand development and fan engagement.
• Premiumization: Increasing investment in premium seating and experiences within stadiums.
• Synergies & Efficiencies: Balancing centralized efficiencies within Hazm Sports Group with localized investment in individual markets.
• Public-Private Partnerships: Utilizing public funding to offset stadium construction costs and maximize economic impact.
• Mixed-Use Development: Integrating real estate development around stadiums to drive revenue and enhance the fan experience.
• Fan Experience: Prioritizing customization and innovation in fan engagement, both in-stadium and digitally.
• Asset Investment & Operation: Expanding investment beyond traditional sports teams into related entertainment and sports assets.

The Evolution of Sports Business & Hazm Sports Group Strategy

Dave Jenkins, President of the Cleveland Browns and Hazm Sports Group, details the significant evolution of the sports business over his 23-year tenure with the Browns. Initially, success was primarily measured by game-day attendance and wins. Today, the focus has shifted dramatically towards building a brand that fans and partners are proud to associate with, requiring a year-round, holistic approach. This includes robust social and digital content strategies, personalized fan experiences, and continuous innovation based on fan feedback. As Jenkins states, the industry is now about “building a brand that our fans and our partners are proud to be associated with and that takes a year-round effort.”

Revenue Drivers & Investment Strategies

While national media rights are a major revenue driver – with the average NFL team now valued at $7.1 billion – Jenkins emphasizes the importance of controlling and growing game-day and other revenues. He highlights a growing demand for premium products across Hazm Sports Group’s portfolio (Browns, Columbus Crew, Milwaukee Bucks). Specifically, $25 million is being invested in upgrades to Scots Miracle Grow Field in Columbus, and the new Cleveland Browns stadium will feature 30% premium product allocation. This signifies a substantial financial commitment to enhancing the fan experience through elevated offerings.

Leveraging a Multi-Team Portfolio

Hazm Sports Group’s ownership of three teams – Browns, Crew, and Bucks – allows for strategic synergies. The initial approach involved identifying efficiencies by centralizing functions like CFO and legal counsel. However, Jenkins stresses the critical need to invest in individual markets, recognizing the unique characteristics of mid-market cities like Milwaukee, Columbus, and Cleveland. This involves dedicated investment in local sales, marketing, and operations. The goal is to learn from each other while remaining deeply connected to each local community.

The New Cleveland Browns Stadium Project

The construction of a new, domed stadium in Cleveland is a central focus. The innovative roof design will utilize Viewscape, an adaptation of ETF (ethylene tetrafluoroethylene) technology, creating an open-air feel with natural light while protecting fans from the elements. Jenkins explains it will “feel like you're sitting outdoors…looking like through a lightly shaded sunglass.” Site preparation began in the last couple of months, with digging scheduled for late February/early March, and the Browns are projected to play in the new stadium starting in 2029.

Public Funding & Economic Impact

Securing public funding was crucial for the stadium project, given the escalating costs of modern stadium construction. The project is a public-private partnership, with the State of Ohio contributing $600 million, the City of Brook Park around $300 million, and Hazm Sports Group covering the remaining costs of a $2.4 to $2.6 billion stadium, plus an additional $1 billion for mixed-use development. Jenkins defends the use of public funds by emphasizing the aggregate fiscal impact of both public and private investment, arguing that no single entity could realistically bear the entire cost. He acknowledges the debate surrounding public funding for sports facilities, noting that team valuations are “highly illiquid” and don’t represent readily available capital.

Mixed-Use Development & Revenue Diversification

Hazm Sports Group is integrating mixed-use development around all three of its stadiums – the Deer District in Milwaukee, Aster Park in Columbus, and the Brook Park development in Cleveland. This strategy aims to increase foot traffic, create a vibrant district atmosphere, and drive revenue. The Cleveland development will include two hotels, 1,200 apartment units, 500,000 square feet of retail space, and 500,000 square feet of office space. Hazm Sports Group will partner with an equity partner to share the risk. The development is designed to create a symbiotic relationship between the stadium and the surrounding area, benefiting both. Regarding naming rights, Hazm Sports Group is utilizing Legends to sell both stadium and district naming rights, aiming to avoid competing brands and maximize value.

Expanding the Portfolio: Strategic Investments

Hazm Sports Group is expanding its investment portfolio beyond traditional sports teams, including investments in the WNBA and Aston Martin’s F1 team. Jenkins describes Hazm as “investors and operators of sports and entertainment assets,” seeking opportunities that are innovative, potentially impactful to fan experiences, and align with their overall strategy. These investments are often facilitated through partnerships with firms like Artos, a private equity firm.

Leveraging Major Events: The 2028 Olympics

Hosting Olympic soccer matches in Columbus in 2028 presents a significant opportunity to enhance the city’s reputation as a “soccer capital of North America” and generate long-term benefits for the Columbus Crew. Jenkins highlights the importance of major events as part of the return on investment for public funding of facilities.

Core Principles & Future Outlook

Jenkins concludes by outlining the three core principles guiding Hazm Sports Group: winning consistently, taking great care of fans, and giving back to the community. He emphasizes that achieving these goals will build a winning organization. He acknowledges work remains to be done but expresses optimism about the Cleveland Browns’ future.