Ohio cannot use unclaimed funds for stadiums, including for the Cleveland Browns, while lawsuit plays out

A Franklin County Common Pleas Court magistrate has issued a preliminary injunction preventing Ohio from giving about $1.7 billion to $1.9 billion in unclaimed funds for sports facilities, including $600 million to the Cleveland Browns, who want to build a new stadium in the city’s suburb, Brook Park.

In her decision, Magistrate Jennifer Hunt halted Ohio’s plans under House Bill 96 while the lawsuit proceeds.

While the ruling prevents the state defendants from “certifying, transferring, diverting, reclassifying, liquidating, or otherwise expending funds held in the Ohio Unclaimed Funds Trust Account,” it also says that the Division of Unclaimed Funds may continue routine custodial administration, processing approved claims, and covering ordinary administrative expenses.

“Neither the State nor the new community organization will own, let alone occupy, retail, office, hotel, and residential buildings in the Brook Park Project. As such, the undersigned finds that the taking here is not for ‘public use,’” Hunt wrote in the decision.

Jeff Crossman, the lead attorney for the plaintiffs, told News 5 Cleveland that he is glad that he and his clients were able to temporarily defeat the state.

“This is a victory for everyday Ohioans and their constitutional rights,” he told the Cleveland station. “The injunction ensures that billions of dollars belonging to Ohio citizens remain protected until the constitutional questions we raised are fully resolved.”

Former Ohio Attorney General Marc Dunn also celebrated Hunt’s ruling, saying that Ohio’s government decision “was clearly an unconstitutional taking.”

“If they want to fund the stadium, there are ways to do it constitutionally. I’m a Browns fan. I certainly don’t want to see anything happen to Cleveland sports teams. But there’s a way to do it, and it requires courage and leadership,” he told The Statehouse News Bureau.

As expected, a spokesperson for Haslam Sports Group, which owns the Browns, was not enthusiastic about Hunt’s ruling, adding that it is a temporary decision and that he and his clients will continue the battle in court.

“We understood this temporary outcome was a possibility, but remain undeterred and on schedule in delivering this transformative stadium and economic development project for our region and the state as the legal process continues to play out,” Peter John-Baptiste, the spokesman, told News 5 Cleveland in an email.

News 5 Cleveland reported that the injunction affects the Browns’ $2.4 billion domed stadium plan, which is expected to open in 2029.

The injunction also impacts potential grants for Ohio sports facilities of other sports teams, such as the Cleveland Guardians, the Cleveland Cavaliers, the Cincinnati Bengals, and the Columbus Clippers.

State officials can object to the magistrate’s decision, sending the ruling to a Franklin County Common Pleas Court judge who can opt to uphold it or change it. After that, parties can further appeal the ruling.