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STADIUM
FORTY NINERS STADIUM MANAGEMENT COMPANY
April 19, 2022
Rajeev Batra
Santa Clara Stadium Authority
1500 Warburton Avenue
Santa Clara, CA 95050
Dear Mr. Batra,
Stadium Manager is seeking approval from the SCSA for the setting of SBL pricing for field seating in the north and south endzones of Levi's Stadium.
The field seats continue to be popular with fans and present a significant financial opportunity to drive additional revenue directly to the SCSA. Although we have not yet received final approval for the seats from the NFL for the 2022 season , we would like to proceed with finalizing the price point so that when approved, we are prepared to go to market with the seats.
We believe that the optimal price point for these seats is an SBL of $10,000 per seat. At this price level, we anticipate full sell-through of the field seating within 18 months, generating a projected $1,127,225.00 in total revenue to the SCSA over the life of the seats .
As you are aware, Section 4.6.1 of the Lease requires the SCSA to reimburse Tenant for amenities contained in Exhibit D of an SBL agreement that are fulfilled by the Tenant for NFL Events. Specifically, the Lease requires the SCSA to reimburse Tenant for complimentary buffets provided by Tenant at NFL games, if such benefit is contained in Exhibit D. With respect to these specific field seats only, the 49ers have committed to covering any food and beverage offered by Tenant associated with these SB Ls, and such amenity will NOT be included in Exhibit D of the SBL agreement for these seats. Thus, the SCSA will not be obligated to fund any buffets associated with the seats.
I have attached our revenue projections for the seats (Exhibit A). The projections assume pricing approval by the end of April 2022.
m Mercurio
Executive Vice President & General Manager
cc: Mayor and City Council
Ruth Shikada
Christine Jung
49ers Complianc e Manage r
4900 Marie P. DeBartolo Way I Santa Clara, CA 95054