JANUARY 27, 2025
Northeast Ohio is at a critical point in its transformation. This year’s honorees are playing critical roles in making that happen. PAGE 8
Modell Law may not keep the Browns in Cleveland
Joann’s future depends on buyer after bankruptcy
Legal experts say it may not hold up in court, but it’s worth the risk for the city
Retailer’s rapid failure after first Chapter 11 points to continued struggles
By Joe Scalzo
As the battle over where the Cleveland Browns will play in the near future continues to unfold — the lakefront or Brook Park — the fight has more and more centered around one specific state law tied to Cleveland football past: Section 9.67 of the Ohio Revised Code, aka the “Modell Law." The 137-word provision, which was enacted in 1996 after Art Modell moved the Browns to Baltimore, is either: ◗ A toothless, untested, unenforceable
piece of legislation that has no bearing on the team’s attempt to build a domed stadium in Brook Park after Huntington Bank Field’s (HBF) lease expires in 2028 (the Browns’ stance); or ◗ A crucial lever available to the city of Cleveland ensuring the Browns won’t be allowed to take $350 million in taxpayer money and flee to the suburbs (the city’s stance). The Browns filed a complaint in federal court on Oct. 24, requesting a declaratory judgment against the city’s plan to invoke the Modell Law by arguing that it’s “unconstitutional on its face” and, even if it’s not, moving to Brook Park “does not trigger or violate the requirements of R.C. 9.67.” See BROWNS on Page 17
By Jeremy Nobile
No matter how Joann Inc.’s second bankruptcy is resolved, one thing is for certain: The craft and fabrics retailer stands to look much different than it did after its first ill-fated reorganization in 2024. “I would say that having failed in several months of their (last reorganization) plan, the chances of them having a successful reorganization now at the size they are at are slim,” said Marc Merklin, a bankruptcy attorney with Roetzel & An-
dress, whose clients include some of Joann’s creditors. “I think the chances of them emerging and looking like Joann did three months ago are probably pretty remote,” Merklin emphasized. “If I were a betting person, that’s how I would look at it.” Joann’s first Chapter 11 bankruptcy was completed last spring in just six weeks. The business came out the other side with a reduced debt load but without closing any stores or conducting mass layoffs. That result at the end of an exceedingly quick trip through the bankruptcy process was celebrated at the time. Joann even opened more stores after that, growing its footprint to some 850 locations in 49 states operated by a workforce of 19,000. See JOANN on Page 16
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ECONOMY Cleveland’s largest public companies saw stocks stumble in late 2024. PAGE 2
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