The state can’t take $600 million in unclaimed funds and give it to the Cleveland Browns for a domed stadium development in Brook Park as part of the two-year state budget. That’s the decision of a Franklin County judge, which comes just over a week before the transfer of the money was set to happen.
On Jan. 1, the state was set to transfer between $1.7 and $1.9 billion in unclaimed money to a cultural and sports facilities fund, with $600 million earmarked for the Browns project. That’s stopped till a hearing Jan. 8.
"The irreparable harm that will occur should the funds be transferred on January 1, 2026 is significant," wrote Franklin County Common Pleas Judge Bill Sperlazza. "This creates a situation where at some point, the amount of funds in the trust with the Division [of Unclaimed Funds], may not be sufficient enough to compensate all pre-2016 claims for recoupment of unclaimed funds—leaving the State of Ohio responsible to compensate individuals for those claims."
Sperlazza also wrote: "These unclaimed funds are the ownership of the claimants, not the Division."
The state holds about $4.8 billion in unclaimed funds, which are from abandoned bank accounts, insurance payments, safe deposit box balances and other sources. The money targeted for the transfer has been held by the state since 2016.
Democratic former attorney general and state lawmaker Marc Dann handled the lawsuit, and said while it’s a big win, the case isn’t over.
"This will stop everything in its tracks until the case comes to a conclusion or the judge on Jan. 8 makes a different decision," Dann said in an interview. "Eventually this matter will be appealed up the line through to the Ohio Supreme Court."
Dann’s suit claims taking the unclaimed funds is unconstitutional, but the state has argued it’s not.
A federal judge ruled earlier this month the transfer could go forward but didn’t dismiss Dann’s lawsuit. Dann said that pointed him down a new path.
"He specifically said in that decision that he wasn't addressing the state law issues that we had raised, so we saw that as an invitation to raise the issues with different clients in state court," Dann said. "So there are different plaintiffs in the new case, but we sought an injunction based on Ohio law. And Ohio constitutional protections against the taking of property from citizens is much even more stringent than the federal Constitution provides, and I think the judge found that we were right."
The $600 million in unclaimed funds is the state's contribution to the Browns stadium development project, which also includes $300 million from Brook Park. The rest of the $2.4 billion for the project, which plans to include housing and retail, is to be paid by Browns owners Jimmy and Dee Haslam. The Haslams have settled a lawsuit with Cleveland for $100 million, and the city is proceeding with a new development plan for the lakefront. The current stadium is set to be demolished in 2029, the year the new stadium is set to open.
