Months ago, Cavaliers CEO Nic Barlage sent a long email to Cuyahoga County Executive Chris Ronayne about something in which they both have a big stake: Rocket Mortgage FieldHouse’s nonprofit landlord.
Barlage complained that the county and city had moved faster than expected in naming a new chair of the Gateway Economic Development Corporation. Cavaliers officials thought they would have more time to weigh in on Gateway’s future before new leadership took over.
“To say that I was shocked is an understatement,” Barlage wrote. “As one of Gateway’s two primary tenants and the largest driver of economic activity in Cuyahoga County, we have for the past year been in frequent communication with you, your staff, along with key leaders at City Hall, about our desire to partner with you to create a more strategic vision for the Gateway District.”
The CEO’s 729-word message to Ronayne and his chief of staff arrived at 9:47 p.m. on Jan. 16. Cuyahoga County provided the email to Signal Cleveland last week in response to a public records request.
Though months old, the email sheds light on a tense moment between one of Cleveland’s professional sports teams and Ronayne, the new county executive. It offers a behind-the-scenes view of the politics of paying for Cleveland’s stadiums while taxpayer sources run dry.
For 30 years, Gateway has managed the flow of public money to the facilities now known as Progressive Field and Rocket Mortgage FieldHouse. Now that money – raised by a countywide “sin tax” on alcohol and cigarettes – is running low.
Ronayne and Mayor Justin Bibb control Gateway’s board seats and now face a dilemma. Ballpark and arena costs are mounting. Meanwhile, the Browns – who are not part of Gateway – are drawing up billion-dollar proposals for a new or renovated stadium.
Last year, Gateway approved $24.4 million in updates at Rocket Mortgage FieldHouse – even though there isn’t enough sin tax money to cover the expense. Under the team’s lease, Gateway should be paying. For now, the Cavaliers are fronting the costs.
In his email, Barlage reminded Ronayne that the Cavaliers were advancing the money on the promise that the county would pay them back.
“On a number of occasions, we have in good faith provided bridge funding to support necessary major capital repairs until such time as the County could identify and execute a funding source,” Barlage wrote. “This often resulted in our waiting months or years to be reimbursed.”
Cavaliers, Cuyahoga County respond
In a statement to Signal Cleveland, Ronayne’s office said the county and Cavaliers have a “strong” relationship. The team and county have met several times this year, and the county has “worked diligently to clarify” Gateway’s role as the arena’s landlord, Communications Director Kelly Woodard wrote in an email.
“Today, the partnership between Gateway, the Cleveland Cavaliers, and public partners at the City of Cleveland and Cuyahoga County is strong,” she wrote. “We continue to work together to maintain Rocket Mortgage Field House as a world class destination and venue for Northeast Ohioans.”
As for reimbursing the Cavaliers $24.4 million, Woodard wrote: “We are still working with the City of Cleveland to identify funds to pay costs approved by the Gateway Board.”
Asked about Barlage’s email, the Cavaliers issued a statement emphasizing the value of “transparent communication.”
“As a responsible tenant of the publicly owned Rocket Mortgage FieldHouse, we have one of the nation’s most fiscally responsible leases,” the statement says. “We are steadfast in our dedication to driving the greatest economic impact for our region. Clear and transparent communication between our public partners and our Team helps us maintain Rocket Mortgage FieldHouse as a world-class venue. We remain committed to our relationship with our partners at Gateway, Cuyahoga County and the city of Cleveland.”
But changes at Gateway appear to be on the table.
Read the full email below. Signal Cleveland redacted the contact information for non-public employees.
Cuyahoga County considers ‘renewing Gateway’
Gateway is a balancing act between the professional sports teams and the taxpayers. The nonprofit serves as the landlord for the Guardians and Cavaliers.
The mayor and county executive name Gateway’s board members. The teams’ rent payments underwrite the nonprofit’s operating budget. Gateway pays for capital repairs at the ballpark and arena by drawing on a shrinking amount of available sin tax proceeds.
Ronayne, who took office in 2023, talked about “renewing Gateway” in an interview with Signal Cleveland in January, less than two weeks before Barlage’s email. The county executive compared the ballpark and arena to his own 103-year old house: in need of repairs as it ages.
“We’ve got 30-year-old houses in these ballparks and areas,” Ronayne said. “So what did we sign up for, and how are we going to pay for it?”
The Cavaliers expected to be part of that conversation, according to Barlage’s email. The team funded a study to guide this new vision for the nonprofit, he wrote. In December last year, Cavaliers and Guardians officials discussed Gateway with Ronayne’s and Bibb’s staffs in the offices of the Greater Cleveland Partnership.
Team officials even believed they would have input in evaluating candidates for board chair.
“In our initial meeting on February 9, 2023 we were asked to help qualify candidates for this opportunity,” Barlage wrote to Ronayne. “We initiated a collaborative process that resulted in many conversations, all of which went nowhere with anyone from the County.”
In joining Bibb to name GiGi Benjamin as Gateway’s chair in January, Ronayne moved sooner than the Cavaliers expected.
“We are disappointed with how the Gateway Board appointment process was handled, not due to who, but due to the process, the why, and ultimately what the vision is for Gateway,” Barlage wrote.
Today, Ronayne isn’t ready to share details publicly on what a renewed Gateway would look like.
“Right now, we are focused on making sure our new board members and the new chairwoman are up to speed,” his office’s statement read. “Any additional discussions would be premature.”
Money for Rocket Mortgage FieldHouse at issue
Some friction between the county and Cavaliers was apparent at Gateway’s board meeting in May.
One of Ronayne’s new board appointees, county official Debbie Berry, challenged the Cavaliers’ request for money to prevent bird strikes at the arena. She questioned whether adding a reflective coating to the arena’s windows qualified as the type of repair that Gateway is legally obligated to cover.
“We’re making a significant investment when there are not a lot of dollars readily available,” Berry said.
Later in the meeting, Cavaliers facilities chief Antony Bonavita reminded board members that the team had gone out on a financial ledge for Gateway.
“We’re laying out $25 million right now in hope that we’re going to get it back at some point,” he said.
The board approved the expense with one “no” vote from Berry.
Despite the dispute, Berry and Bonavita agreed that they would keep the discussion going as they moved toward what Bonavita termed “Gateway 2.0.”
