Sports teams unite on state aid for big events

In a gathering that some called historic, representatives of eight Ohio professional sports teams banded together in one House committee hearing room Tuesday, with the Ohio State University Athletic Department reportedly joining on Wednesday.

So what can bring together such a group?

Money, of course — state money that cities and counties can use to help attract big-time sporting events, such as all-star games and regional tournaments.

Representatives of the Blue Jackets, Browns, Cavaliers, Indians, Reds, Clippers, FC Cincinnati and the Ohio Machine threw their support behind a bill that would remove limitations on the state’s Major Sporting Event Grant Program. Columbus Crew SC did not testify.

Established in 2009, the fund is used to help local governments and nonprofit commissions attract major sporting events that are projected to generate at least a $250,000 increase in state sales-tax revenue. Grants are awarded for up to 50 percent of the projected sales-tax increase, and they are limited to $500,000 per event and a total of $1 million in a year.

Those limits are a problem, officials of the teams said. Michael Priest, president of the Columbus Blue Jackets, said the city faced a “considerable challenge” in raising the money needed to host the 2015 NHL All-Star Game because, at the time, no money was available in the grant program.

The game, Priest said, was a “huge boost” to central Ohio’s economy. But to continue attracting such events and compete with other states, Ohio needs a long-term funding mechanism.

“Without this type of state support in the future, we would have to take a hard look at whether to host another similar event,” he told the House Government Oversight Committee.

Priest and others said a key problem with the existing grant program is that legislators decide whether to fund it every two years when passing the state budget, but cities and sports commissions are bidding on major events that might be five years or more in the future.

Melissa Wideman, representing Cincinnati Reds owner Bob Castellini, also said the grant program did not have funds in 2014 when the city was working to host the Major League Baseball All-Star Game in 2015.

The state did provide funding late in 2014 to help, she said, but long-term funding as proposed in the bill would provide the predictability demanded by Major League Baseball.

Under House Bill 531, the per-event and annual limits on grants would be eliminated. And instead of grant funding being appropriated by the legislature, the fund would be filled by diverting half of the increased state salestax revenue collected as a result of the event.

Supporters said the proposal would put Ohio on par with 34 other states that also offer incentives to attract major sporting events. It is modeled on a grant program in Texas.

Dave Jenkins, who oversees business operations for the Cleveland Browns, said the team, the city and the Pro Football Hall of Fame in Canton are one of five finalists to host the 2019 or 2020 NFL draft.

“In its selection process, the NFL explicitly considers the availability of incentives such as that which (House Bill) 531 would provide,” Jenkins said.

Without this bill, the 2018 NCAA Women’s Final Four in Columbus at the end of this month would be the final event funded with help from the existing program, said Linda Shetina Logan, executive director of the Greater Columbus Sports Commission. She said the event is expected to generate nearly $ 1 million in state sales- tax revenue.