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Cuyahoga County Executive Ed FitzGerald unveiled his 'win tax' plan to the media on Thursday morning.
(Peggy Turbett, The Plain Dealer, File, 2013)
CLEVELAND, Ohio – Cuyahoga County Executive Ed FitzGerald said Thursday he believes he is the first sitting, major elected official to propose using victories on the playing field as a condition of providing public support for professional sports.
As expected, FitzGerald rolled out a proposal to award 20 percent of the sin tax – estimated at $2.6 million a year -- for upkeep at Cleveland's pro sports stadiums based at least in part on how well the teams who use them play.
He calls his idea the "win tax." Voters approved a 20-year extension of the sin tax – a countywide tax on alcohol and cigarettes – to pay for upkeep to FirstEnergy Stadium, Progressive Field and Quicken Loans Arena – last May.
His presentation to reporters included displaying a spreadsheet showing that of cities with three major professional sports teams, Cleveland's 50-year championship drought is the nation's longest.
He argued that if they're going support the Browns, Cavs and Indians games with their tax money, beleaguered Cleveland sports fans deserve a return on their investment.
He also said that there is a correlation between winning sports teams and economic development, citing decreased tax collections following LeBron James's departure from the Cavs in 2011.
"This is at least a small step, and I think it's a real step, to say ... we love these teams, we're loyal to these teams and we're committed to maintaining these facilities. But we can also try to demand to get something a little bit better than we've gotten over the past 50 years," FitzGerald said.
Many details of FitzGerald's plan have not been hashed out. FitzGerald, a Democrat who is running for governor, has proposed forming a "fan advisory council" to develop the criteria used to judge success. He suggested the 20 percent of the sin tax would not be awarded on a "winner takes all basis," and also suggested that criteria besides winning might play a factor in how the money is awarded.
If county council approves the plan, FitzGerald said, those interested in applying to be on the fan advisory council can apply on Cuyahoga County's website.
FitzGerald said he has spoken with Cleveland Mayor Frank Jackson, Cleveland Council President Kevin Kelley, and some representatives with the Browns, Cavs and Indians, about his plan.
Asked about the feedback he received, FitzGerald said his proposal is just a starting point for discussion.
"I can't say I've talked to all public officials on this. I think some will be supportive and others will not be. I think there will be differing opinions on this," he said.
FitzGerald also made a political gaffe when he jokingly referred to the idea that sin tax collections be split evenly between Cleveland's three stadiums as "Distribution for Dummies."
This is an approach favored by Cleveland's mayor, a fellow Democrat, among others.
Though he endorsed the tax, FitzGerald kept a low profile during the campaign. He said nothing about the issue other than to offer a heavily qualified statement of support during a public meeting in which county council voted to send the issue to the May ballot.
Asked why he is proposing a funding distribution formula now, and not while voters still had a choice on the issue, FitzGerald raised a point that sin tax opponents raised during the campaign.
"It was a legitimate argument for people to say they wanted more details on [how the sin tax would be allocated]. They got the [limited] details they got on it, and they still decided to vote for it. Now it's our job to decide how the money's going to be spent," he said.
Nate Kelly, FitzGerald's special assistant for economic development, said FitzGerald's proposal is no different than requiring companies that accept tax incentives to deliver on a certain number of jobs, as the county currently does.
"The executive has been consistent on this issue. The 'win tax' is no different," Kelley said.
Asked about FitzGerald's proposal, Peter Pattakos, a leader of the campaign that unsuccessfully attempted to defeat the sin tax last May, said in an email: "The only responsible use of the Sin Tax proceeds is to pay down the hundreds of millions in debt still outstanding on the sports facilities. If Mr. Fitzgerald wants to stand up for County taxpayers, he will focus on that objective."