SCSA
Santa Clara Stadium Authority
SANTA CLARA
STADIUM AUTHORITY
FINANCIAL STATUS REPORT
Quarter and Fiscal Year Ending
March 31, 2022
November 1, 2022
1 Table of Contents
Introduction .................................................................................................................................................. 2 NFL Events .................................................................................................................................................. 3 Non-NFL Events ......................................................................................................................................... 6 Discretionary Fund ................................................................................................................................... 10 Stadium Builder Licenses ....................................................................................................................... 10 Santa Clara Stadium Authority Budget Status Reports ...................................................................... 13 Operating Budget ................................................................................................................................. 13 Debt Service Budget ............................................................................................................................ 18 Capital Improvement Project Budget ................................................................................................ 22 City of Santa Clara Net General Fund Impact ..................................................................................... 24 Public Safety and Administrative Cost Reimbursement ................................................................. 24 Rents and Senior and Youth Fee ...................................................................................................... 24 Other Revenue Impacts ...................................................................................................................... 25 Glossary ..................................................................................................................................................... 26
2 Introduction
This Santa Clara Stadium Au thority (“Stadium Authority ”) Financial Status Report provides information covering the fourth quarter of the Stadium Authority’s 2021/22 fiscal year (FY) which ended on Marc h 31, 2022. Comparative data fr om prior fiscal years is also included.
In addition to these quarterl y reports, the Stadium Authorit y produces annual financial statements. The FY 2021/22 financial statements were audited by an external audit firm and presented to the Stadium Authority’s Audit Committee on September 30, 2022 and the Stadium Authority Board (“Board”) on Oc tober 18, 2022. Once presented to the Stadium Authority Board, the financial statements as well as this report are published on the Stadium Authority’s website.
The Stadium Authority also pr epares a detailed b udget prior to the beginning of each fiscal year. The FY 2021/22 budget was considered at a study session on March 9, 2021 and adopted by the Board on March 23, 2021.
Stadium Authority finances are structured so that the City of Santa Clara (City) is not liable for the debts or obligations of the Stadium Authority. All serv ices provided by the City, including administrative and public safety , to the Forty Niners Stadium Management Company, LLC (“ManagementCo”) or the Stadium Authority are fully reimbursed with Stadium Authority funds.
Methodology
Information provided in this report was based in part on documentation submitted by ManagementCo. Specifically, NFL and Non-NFL event statistics and financial information relating to Stadium Manager expenses ar e provided by ManagementCo. Stadium Authority staff is limited to a review of selected financial info rmation submitted by ManagementCo, including some source documentation for Non-NFL events with attendance greater than 25,000, submitted 45 days after each event. More detailed documents are received over 90 days after the close of the fiscal year. For all other financial information, a full detailed review and/or audit of source documentation has not been completed by the Stadium Authority for this report.
The Stadium Authority has cont racted with JS Held (formerl y Hagen, Streiff, Newton, & Oshiro), a forensic accounting firm, to review and evaluate Non-NFL event financial information from prior years, including source documentation. The report was discussed with the Board at the December 1, 2020 Stadium Authority Board meeting. The Stadium Authority is working with JS Held for the review of additional historical years.
The information provided reflects the best known and available at the time of the writing of this report and is subject to further re vision when the full body of records becomes available and review is complete. Consequent ly, the Board’s notation and filing of this report should not be considered an approval of the accuracy of the information in the report.
3 NFL Events
This section provides fiscal year to date and comparative data for NFL games categorized as pre-season and regular season games. In FY 2020/21, there were no fans present for the NFL games. The comparative data is based on the quarter ended March 31, 2020.
The San Francisco Forty-Niners (“49ers”) pl ayed a total of ten NFL games (two pre- season games and eight regular season games) at Levi’s
® Stadium as of March 31, 2022.
There was a total of 674,214 tickets sold to these NFL games, an average of 67,421 tickets per game. This is at approximately the same level as FY 2019/20. The ticket sales resulted in $9.8 million in NFL ticket surchar ge revenue (10% of ticket sales) to the Stadium Authority. The average NFL ticke t surcharge revenue was $981,000 per game in the current year which is up by $280,000 or 40% from the same period in FY 2019/20.
A total of $236,000 of Senior and Youth Program Fees, which is based on $0.35 per NFL ticket sold, were collected through the end of t he fourth quarter of the fiscal year. These fees were transferred to the City’s General Fund in support of such programs.
A total of 71,614 cars were parked in the permitted offsite parking lots generating $423,000 in offsite parking fees. The Tasman lot parking had a total of 4,449 parked cars and generated an additional $22,000 for the General Fund through the end of the fourth quarter of the fiscal year. The overall number of cars parked in the permitted offsite lots and the Tasman lots increased by 3% when compared to the same period in FY 2019/20.
There were $5.3 million of NFL event public safety costs in the current fiscal year which is an average of $503,000 per game. This is up from the FY 2019/20 average of $451,000 per game. Of the $5.3 million NF L event public safety costs, $3.7 million or 69.6% are direct City costs and $1.6 millio n or 30.4% are outside ag ency costs. Approximately $423,000 of the total NFL event publ ic safety costs were covered by the offsite parking fees that were collected and the remain ing $4.9 million were invoiced to the ManagementCo. ManagementCo, on behalf of StadC o, has paid all NFL public safety costs to the City, including certain disputed costs that were pai d under protest pursuant to the parties’ August 31, 2022 Stipulation to Stay of the public safety cost arbitration. It should be noted that costs differ depending on deployment needs for each event.
Statistics for the NFL games held at Levi’s
® Stadium in the 2021/22 fiscal year are shown
in Table 1 and comparative data from all seven years of operations can be found in Table
2. 4
Table 1
2021/22
08/14/21 08/29/21 09/26/21 10/03/21 10/24/21 11/07/21 11/15/21 11/28/21 12/19/21 01/02/22 YTD Total No. of Tickets Sold 63,172 68,258 68,021 67,016 64,768 67,398 66,659 69,572 69,682 69,668 674,214 NFL Ticket Surcharge 498,759 $ 551,632 $ 1,601,010$ 1,551,718 $ 865,536 $ 889,178 $ 1,128,298$ 901,571 $ 912,696 $ 908,611 $ 9,809,009$ Senior/Youth Program Fees 22,110 $ 23,890 $ 23,807 $ 23,456 $ 22,669 $ 23,589 $ 23,331 $ 24,350 $ 24,389 $ 24,384 $ 235,975$ Cars Parked at Offsite Lots 5,340 8,145 8,193 7,581 5,514 7,244 6,066 7,718 7,917 7,896 71,614 City Offsite Parking Fee 31,559 $ 48,137 $ 48,421 $ 44,804 $ 32,588 $ 42,812 $ 35,850 $ 45,613 $ 46,789 $ 46,665 $ 423,238$ Cars Parked on Tasman Lots 364 416 400 439 397 455 472 501 486 519 4,449 City Tasman Lot Parking Fee 1,820 $ 2,080 $ 2,000 $ 2,195 $ 1,985 $ 2,275 $ 2,360 $ 2,505 $ 2,430 $ 2,595 $ 22,245$ Stadium Public Safety Costs 555,609 $ 817,391 $ 482,191 $ 497,096 $ 444,785 $ 524,390 $ 483,650 $ 519,618 $ 494,051 $ 484,710 $ 5,303,491$ Less: Offsite Parking Fee Credit (31,559) $ (48,137) $ (48,421) $ (44,804) $ (32,588) $ (42,812) $ (35,850) $ (45,613) $ (46,789) $ (46,665) $ (423,238)$ Reimbursable Stadium Public Safety Costs 524,050$ 769,254 $ 433,770 $ 452,292 $ 412,197 $ 481,578 $ 447,800 $ 474,005 $ 447,262 $ 438,045 $ 4,880,253$ Amount Reimbursed 524,050 $ 769,254 $ 433,770 $ 452,292 $ 412,197 $ 481,578 $ 447,800 $ 474,005 $ 447,262 $ 438,045 $ 4,880,253$ Levi's® Stadium
2021/22 NFL Event Statistics
As of March 31, 2022
Game 1 vs
Chiefs
Game 2 vs
Raiders
Game 3 vs
Packers
Game 4 vs
Seahawks
Game 5 vs
Colts
Game 6 vs
Cardinals
Game 7 vs
Rams
Game 8 vs
Vikings
Game 9 vs
Falcons
Game 10 vs
Texans
5 Table 2
2014/15 Q4 2015/16 Q4 2016/17 Q4 2017/18 Q4 2018/19 Q4 2019/20 Q4 2020/21 Q4 2021/22 Q4 Total Total Total Total Total Total Total Total
No. of NFL Ev ents 10 10 10 10 10 12 5 10 No. of Tickets Sold 682,095 669,826 655,891 643,189 651,237 803,524 - 674,214 NFL Ticket Surcharge 8,366,290 $ 8,273,378 $ 8,175,462 $ 7,806,190 $ 8,076,510 $ 8,412,291 $ - $ 9,809,009$ Senior/Youth Program Fees 238,734 $ 234,439 $ 229,562 $ 225,116 $ 227,933 $ 250,000 $ - $ 235,975$ Cars Parked at Offsite Lots 90,024 57,166 67,740 54,107 56,390 81,401 - 71,614 City Offsite Parking Fee 442,918 $ 290,403 $ 354,958 $ 293,260 $ 317,476 $ 476,196 $ - $ 423,238$ Cars Parked on Tasman Lots 4,983 6,876 5,122 5,530 4,729 6,882 - 4,449 Cars Parked on Golf Course 23,306 20,090 - - - - - - City Tasman Lot and Golf Course Parking Fee 141,445$ 134,830 $ 25,610 $ 27,650 $ 23,645 $ 34,410 $ - $ 22,245$ Stadium Public Safety Costs 2,455,404 $ 2,437,902 $ 3,084,850 $ 2,633,295 $ 2,994,735 $ 5,416,926 $ 887,617 $ 5,303,491$ Golf Course Public Safety Costs 180,766 $ 81,210 $ - $ - $ - $ - $ - $ - $ Subtotal Event Public Safety Costs 2,636,170 $ 2,519,111 $ 3,084,850 $ 2,633,295 $ 2,994,735 $ 5,416,926 $ 887,617 $ 5,303,491$ Less: Offsite Parking Fee Credit (442,918) $ (290,403) $ (354,958) $ (293,260) $ (317,476) $ (476,196) $ - $ (423,238)$ Reimbursable Stadium Public Safety Costs 2,193,252$ 2,228,708 $ 2,729,892 $ 2,340,035 $ 2,677,259 $ 4,940,730 $ 887,617 $ 4,880,253$ Reimbursed by StadCo 1,437,848 $ 1,558,806 $ 1,556,550 $ 2,340,035 $ 2,677,259 $ 4,940,730 $ 887,617 $ 4,880,253$ Reimbursed by SCSA 755,404 $ 669,902 $ 1,173,342$ - $ - $ - $ - $ - $ Total Amount Reimbursed 2,193,252 $ 2,228,708 $ 2,729,892 $ 2,340,035 $ 2,677,259 $ 4,940,730 $ 887,617 $ 4,880,253$ Levi's
®
Stadium
Historical NFL Event Statistics
6 Non-NFL Events
This section provides annual and comparative data for N on-NFL Events categorized as events ranging from high school and colle ge football games, international soccer matches, concerts, wedding fairs, and specia l events. Due to the pandemic, there were no Non-NFL events held in FY 2021/22. Non-NFL events are expected to resume in FY 2022/23. In correlation with the no ticketed events being held, the City did not receive any revenue from cars parked at the permitted offsite parking lot.
The ManagementCo reports that there were 12 smaller s pecial events held at Levi’s ®
Stadium which is down by 67 events or 85% when compared to the same period in FY 2019/20. The reported attendance was 3,698 in FY 2021/22. Examples of these special events include corporate events of various si zes, weddings, holiday parties, high school dances, etc.
Total Non-NFL events public safety costs we re $99,000, a decrease of $1.6 million or 94%. As mentioned previously, the decrease in cost is due to the decrease in events being held in the current reporting period when compared to FY 2019/20.
Statistics for comparative data from all eight years of operations are shown in Table 3.
7 Table 3
2014/15 Q4 2015/16 Q4 2016/17 Q4 2017/18 Q4 2018/19 Q4 2019/20 Q4 2020/21 Q4 2021/22 Q4 Total Total Total Total Total Total Total Total
No. of non-NFL Ticketed Events 9 17 18 13 12 8 - - No. of Tickets Sold 377,312 629,004 582,349 384,282 332,600 183,874 - - Non-NFL Ticket Surcharge 1,431,540 $ 2,477,084 $ 2,329,396 $ 1,537,128 $ 1,330,400 $ 735,496 $ - $ - $ No. of Non-NFL Special Events 186 207 127 113 100 79 - 12 Non-NFL Special Event Attendees 62,357 105,997 49,151 62,917 35,676 33,535 - 3,698 Cars Parked at Offsite Lots 26,156 55,720 60,969 30,734 28,566 17,127 - - City Offsite Parking Fee 128,688 $ 278,704 $ 313,979 $ 165,149 $ 158,623 $ 98,547 $ - $ - $ Cars Parked on Golf Course 12,004 20,661 9,562 - - - - - City Golf Course Parking Fee 60,020 $ 103,305 $ 47,810 $ - $ - $ - $ - $ - $ Stadium Public Safety Costs 1,782,821$ 3,083,668 $ 3,207,507 $ 2,020,343 $ 2,421,914 $ 1,718,924 $ - $ 98,983$ Golf Course Public Safety Costs 76,462$ 119,842 $ 39,905 $ - $ - $ - $ - $ - $ Subtotal Event Public Safety Costs 1,859,283$ 3,203,510 $ 3,247,412 $ 2,020,343 $ 2,421,914 $ 1,718,924 $ - $ 98,983$ Less: Offsite Parking Fee Credit (128,688)$ (278,704) $ (313,979) $ (165,149) $ (158,623) $ (98,547) $ - $ - $ Reimbursable Public Safety Costs 1,730,595$ 2,924,805 $ 2,933,433 $ 1,855,194 $ 2,263,291 $ 1,620,377 $ - $ 98,983$ Amount Reimbursed 1,730,595 $ 2,924,805 $ 2,933,433 $ 1,855,194 $ 2,263,291 $ 1,620,377 $ - $ 98,983$ (1) Includes Non-NFL special events.
Levi's® Stadium
Historical Non-NFL Event Statistics(1)
8 Table 4 and 5 show Non-NFL net revenue by event type and event revenue and expenses by category. The inclusion of this information is to provide a greater level of transparency and provide the overall financial results of the Non-NFL events.
For FY 2021/22’s budget, the Stadium Manager initially estimated FY 2021/22 Non-NFL events to result in a net loss of $600,000 an d it was revised to a net loss of $551,000.
The year ended with a loss of $289,000, which includes ongoing operating costs, staffing costs and insurance. Stadium Authority staff is currently reviewing the supporting documentation provided. FY 20 21/22 Non-NFL events loss is attributable to Other Operating Expenses which are non-event specific ov erhead costs. The largest expenditures included $339,000 of catered events labor costs, consisting of employees responsible for managing special events at the stadium. Approximately $222,000 of the loss consisted of non-event specific staffing costs, consisting of labor costs from the general accounting, ticket operations, and business strategy departments.
Table 4
No. of
Events
Net
Revenue
Ticketed Events
Concerts 0 $ -
Sporting events:
Football (non-NFL) 0 -
Soccer 0 -
Miscellaneous (3) 0 9,018
Subtotal Ticketed Events 0 9,018 $
Subtotal Remaining Non-NFL Events (weddings, corporate events, etc.) 0 354,358 $ Subtotal Other Operating Expenses (2) (652,117)$
Total Non-NFL Net Revenue (Loss) 0 (288,741) $
Total Performance Rent paid to the General Fund (1) -$
(1) Performance Rent is calculated as 50% of the net revenue from Non-NFL events less performance-based credit of 50% of fixed ground rent
(2) Other Expenses not attributable to a specific event (3) Miscellaneous revenues from previously canceled events Event Type
Levi's® Stadium
Net Revenue (Loss) for Non-NFL Events
by Event Type
FY 2021/22 Quarter 4
9 Table 5
2021/22
YTD Total
REV ENUE:
Seating Bow l -$
Ticket M aster Fees -
Suites -
Food & Beverage 123,864
Par king -
Sponsorship -
Merchandise -
Miscellaneous(1) 1,109,092
Total Revenue 1,232,956 $
EXPENSE:
Public Safety/Security 16,122 $
Utilities/Solid Waste -
Parking (4,026)
Food & Beverage - Ticketed Events -
Food & Beverage - Special Events 702,023
Operations/Janitorial/Maintenance 36,078
Miscellaneous(2) 771,500
Total Expense 1,521,697 $
Total Non-NFL Net Revenue (Loss) (288,741) $
(1) Includes special event revenue such as corporate events, w eddings, holiday parties, etc. (2)Includes Labor Charges from Other Departments, rentals, fees & commissions, transportation, marketing, and other expenses
Levi's® Stadium
Non-NFL Event Results by Category
FY 2021/22 Quarter 4
10 Discretionary Fund
The Discretionary Fund is funded by rev enue equal to 50% of the Non-NFL Ticket Surcharge of $4 per ticket. Table 6 shows the revenues and expenses in the Discretionary Fund since FY 2014/15. The balance at the end of this reporting period was $2.3 million.
Table 6
Stadium Builder Licenses
The total principal value of currently active Stadium Bu ilder Licenses (“SBLs”) is $539.3 million and, as of March 31, 2022, 93.0% of the total pr incipal value of all SBLs sold ($501.4 million) had been collected.
SBL holders that finance their purchase pay an annual interest rate of 8.5% and payments are due by March 1
st each year. The majority of SBL holders make their payments on time. For those that do not pay on time, SBL service staff, working for ManagementCo on the Stadium Authority’s behalf, contact the SBL holders and attempt to collect the full amounts owed. Ultimately, an SBL can be def aulted for non-payment. Once an SBL is defaulted, the SBL holder in default loses their right to buy season tickets as well as their priority rights to tickets to Non-NFL Events, and forfeits any money they had invested in the SBL. Defaulted SBLs are then available for resale.
There is a total of 61,955 currently active SBLs, or 93.8% of the 66,066 total sellable SBL seats. This is an increase of 1,587 from the total active SBLs at the end of the prior fiscal year (March 31, 2021). The main reasons for the increase are due to sales of new SBLs and the net increase related to the customer seat relocation program offset by customer defaults. The customer seat relocation progra m allows customers to trade in their SBLs in return for others in a different location as long as the total face value of the new seats is equal to or greater than the original seats.
During the current reporting period, 1,936 SBLs were sold for a total face value of $13.2 million. The customer seat relocation program resulted in an increase of $1.8 million to the SBL face value, while netting 97 more SBLs. There were also 447 SBLs defaulted during the year with a total face value of $4.7 million.
Fiscal Year
Beginning
Balance Revenue Ex penses Endin g Balance
2014/15 - $ 715,770$ 714,028 $ 1,742 $ 2015/16 1,742 1,238,542 699,129 541,155 2016/17 541,155 1,164,698 1,209,342 496,511 2017/18 496,511 768,564 - 1,265,075 2018/19 1,265,075 796,294 101,267 1,960,102 2019/20 1,960,102 367,748 - 2,327,850 2020/21 2,327,850 - 18 2,327,832 2021/22 2,327,832 - (18) 2,327,850 Discretionary Fund - Accrual Basis
11 Additional details regarding currently active SBLs are noted in Table 7. 12 Table 7
SBL Seats
Available
SBL Seats Sold
as of 3/31/21
New SBL
Sales
Net SBL
Relocations
SBL
Defaults Other SBL Seats
Sold SBL Value SBL Collected % SBL Principal
Collected
100 100 - - - - 100 14,082,625$ 13,109,418 $ 93.1% 942 925 11 6 (14) - 928 74,240,000$ 71,467,447 $ 96.3% 2 2 - - - - 2 80,000$ 74,636 $ 93.3% 4,945 4,463 112 12 (38) - 4,549 136,470,000$ 129,176,789 $ 94.7% 3,475 2,852 68 1 (27) - 2,894 57,880,000$ 54,164,298 $ 93.6% 7 7 - - - - 7 105,000$ 95,780 $ 91.2% 2,162 2,166 57 5 (29) - 2,199 26,388,000$ 24,064,399 $ 91.2% 7 7 - - - - 7 70,000$ 66,122 $ 94.5% 20,652 20,547 348 88 (133) - 20,850 125,100,000$ 114,354,436 $ 91.4% 14,306 13,302 720 131 (117) 1 14,037 70,185,000$ 62,927,921 $ 89.7% 916 920 - 2 (3) - 919 3,676,000$ 3,568,103 $ 97.1% 91 91 - - - - 91 273,000$ 256,990 $ 94.1% 41 44 - - - - 44 110,000$ 104,814 $ 95.3% 18,387 14,907 620 (146) (85) - 15,296 30,592,000$ 27,984,284 $ 91.5% 33 35 - (2) (1) - 32 32,000$ 30,503 $ 95.3% 66,066 60,368 1,936 97 (447) 1 61,955 539,283,625$ 501,445,940 $ 93.0% Plus: Interest on financed SBLs 62,950,573
Total Principal & Interest 564,396,513
(1)
This table does not include $32.1 million that has been collected life-to-date from defaulted SBL holders. 1,000
5,000
4,000
3,000
2,500
2,000
Total
10,000
Santa Clara Stadium Authority
Currently Active Stadium Builder License (SBL) Summary (1) Through March 31, 2022
Seat Value
141,392
80,000
40,000
30,000
20,000
15,000
12,000
6,000
13 Santa Clara Stadium Authority Budget Status Reports
Operating Budget
With Fiscal Year 2021/22 complete, total oper ating revenues for the current reporting period were $66.5 million repres enting 102% of the overall budget for revenues. As a reminder, there were no Non-NFL events being held at the Stadium due to the pandemic and therefore the Stadium Au thority did not receive any revenue related to event attendance. The revenue affected by the pandemic includes Non-NFL Event Revenue and Non-NFL Event Ticket Surcharge. The Stadi um Authority still collected NFL ticket surcharge, SBL proceeds, sponsorship revenue, Naming Rights revenue and rent. During the current reporting period, the Stadium Authority colle cted $27.3 million in SBL proceeds or 115% of what was budgeted. Stadium rent earned from StadCo totaled $24.7 million, an increase of $7.4 million.
Total operating expenses were $58.4 million, or 90% of the annual budget. The shared stadium manager expenses we re $22.9 million or 307% of what was budgeted. The increase was mainly due to litigation settl ement related to the stadium manager expenses. On August 31, 2022, the Stadium Authority entered into a settlement agreement with StadCo and ManagementCo over disputes regarding the Operating and Management Expenses, Shared Expenses, and Capital Expenditures that were previously withheld. As part of the settlement, the Stadium Authority agreed to recognize the $15.8 million of unpaid ManagementCo expenses along with the $426,000 interest expenses from the Revolving Loan. As a result, total shared stadium manager expenses increased by $15.4 million compared to the annual budget. Under the written settlement agreement, Stadium Manager's prior unauthorized payments of these unpaid expenses through the Revolving Loan are now treated as timely Stadiu m Authority payments, but without Stadium Authority agr eeing to Stadium Manager's ac tions or draws under the Revolving Loan.
SBL Sales & Service expenses were $1.8 m illion, or 51% of the annual budget. This is under budget due to the exclusion of $1.3 million of SBL buffet costs. These buffet costs were excluded from the settlement mentioned above, and the Stadium Authority does not recognize these expenses. The Stadium Authority pays for all utility costs from February 1 st through July 31st and the tenant (StadCo) pays for utility costs from August 1st through January 31st (Tenant Season). Utility expenses were $1.1 million, or 68% of the budget for the year. This is also under budget due to no ticketed Non-NFL events being held.
Other Expenses were $1.6 million, or 304% of the budget, due recognition of unpaid ManagementCo expenses that were previous ly partially suspended from payment, and also interest expenses from the Revolving Loan, which were resolved under the parties’ August 31, 2022 Settlement Agreement. Net Transfers out amounted to $27.0 million and, lastly, Stadium Authority G&A costs were $2.9 million or 57% of the budget.
Overall, the Stadium Authority operating fund ended the year with a fund balance of $38.9 million; included in that am ount is an $12.3 million operating reserve and a $2.3 million discretionary fund.
14 Additional details are shown in Table 8.
15 Table 8
Budget to Budget to
Final Q 1Q 2Q 3Q 4 Y TDA ctual % F inal Y
TD A ctual %
Budget Actuals Actuals Actuals Actuals Actuals Difference Received Budget Actuals Difference Received Resources
Revenues
NFL Ticket Surcharge 8,665,000$ -$
2,651,401$ 6,248,997$ 908,611$ 9,809,009$ (1,144,009)$ 113% -$ -$ -$
NA
SBL Proceeds 23,682,000 - 11,577,075 3,814,026 11,888,315 27,279,416 (3,597,416) 115% 24,934,279 24,934,279 - 100% Interest 56,000 4,659 4,934 5,354 9,746 24,693 31,307 44% 896,000 31,645 864,355 4% Non-NFL Event Revenue - - - - - - - NA - - - NA Net Revenues from Non-NFL Events - - - - - - - NA - - - NA Naming Rights 7,165,000 - 3,529,738 - - 3,529,738 3,635,262 49% 6,957,000 6,956,668 332 100% Sponsorship Revenue (STR) 325,000 81,250 81,250 81,250 99,676 343,426 (18,426) 106% 392,000 325,000 67,000 83% Rent 24,762,000 6,741,100 6,190,500 6,190,500 5,639,900 24,762,000 - 100% 17,333,400 17,333,400 - 100% Senior & Youth Program Fees 232,000 - 69,808
141,783 24,384 235,975 (3,975) 102% - - - NA Non-NFL Event Ticket Surcharge 150,000 - - - - - 150,000 0% - - - NA
Bay Area Host Committee Reimbursement - - - - - - - NA 727 727 0 100% Other Revenue - - - - 550,600 550,600 (550,600) NA - 26,430 (26,430) NA Revenues Subtotal 65,037,000$ 6,827,009$ 24,104,706$ 16,481,910$ 19,121,231$ 66,534,856$ (1,497,856)$ 102% 50,513,406$ 49,608,149$ 905,257$ 98% Total Resources 65,037,000$ 6,827,009$ 24,104,706$ 16,481,910$ 19,121,231$ 66,534,856$ (1,497,856)$ 102% 50,513,406$ 49,608,149$ 905,257$ 98% Budget to Budget to
Final Q1 Q2 Q3 Q4 YTD Actual Final Y
TD Actual
Budget Actuals Actuals Actuals Actuals Actuals Difference % Used Budget Actuals Difference % Used Expenses
Shared Stadium Manager Expenses
Stadium Operations 1,681,393$ 386,890$ 640,618$ 410,934$ 7,011,821$ 8,450,263$ (6,768,870)$ 503% -$ (851,589)$ 851,589$ NA
Engineering 1,543,240 314,610 546,060 409,545 3,811,707 5,081,922 (3,538,682) 329% - 408,194 (408,194) NA Guest Services 304,134 49,445 85,820 64,365 1,038,323 1,237,953 (933,819) 407% - (221,124) 221,124 NA Groundskeeping 93,809 19,125 33,200 24,900 559,430 636,655 (542,846) 679% - (121,267) 121,267 NA Security 378,652 77,190 133,980 100,485 2,953,318 3,264,973 (2,886,321) 862% - 102,175 (102,175) NA Procurement 311,412 - 51,902
155,706 51,902 259,510 51,902 83% - - - NA Insurance 3,136,000 784,045 894,044 400,000 1,126,090 3,204,179 (68,179) 102% 3,045,000 3,098,982 (53,982) 102% Stadium Management Fee - - - - 716,640 716,640 (716,640) NA - - - NA Shared Stadium Mngr Exps Subtotal 7,448,640$ 1,631,305$ 2,385,624$ 1,565,935$ 17,269,231$ 22,852,095$ (15,403,455)$ 307% 3,045,000$ 2,415,371$ 629,629$ 79% Other Expenses
SBL Sales and Serv ice 3,448,000$ 540,000$ 720,000$ 540,000$ (46,549)$ 1,753,451$ 1,694,549$ 51% 1,967,000$ 913,471$ 1,053,529$ 46% Senior & Youth Fees (paid to City) 232,000 - 93,263
118,328 24,384 235,975 (3,975) 102% - - - NA Net Non-NFL Event Loss 600,000 - - - 288,741 288,741 311,259 48% 600,000 509,649 90,351 85% Ground Rent (paid to City) 425,000 - 425,000
- - 425,000 - 100% 390,000 390,000 - 100% Performance Rent (paid to City) - - - - - - - NA - - - NA Discretionary Fund Expense 250,000 - - - - - 250,000 0% - - - NA
Utilities 1,586,000 370,500 125,000 - 583,733 1,079,233 506,767 68% 1,264,000 695,999 568,001 55% Use of StadCo Tenant Improvements 26,000 - 1,353 1,353 162,120 164,826 (138,826) 634% - - - NA Stadium Authority G&A 5,115,000 580,570 681,991 844,088 816,937 2,923,587 2,191,413 57% 3,581,000 2,792,128 788,872 78% Naming Rights Commission 88,000 44,122 - 44,122 - 88,244
(244) 100% 30,000 29,782 218 99% Legal Contingency 3,684,360 - - - - - 3,684,360 0% - - - NA Other Expenses 514,000 - - 149,500 1,415,304 1,564,804 (1,050,804) 304% 913,000 (73,476) 986,476 -8% College Football Playoff Expense - - - - - - NA 727 727 0 100% Transfers Out 41,262,000 - 13,716,691 12,144,192 1,170,927 27,031,810 14,230,190 66% 42,847,000 58,497,780 (15,650,780) 137% Contribution to Operating Reserve - - - - - - - NA 348,000 - 348,000
0%
Other Expenses Subtotal 57,230,360$ 1,535,192$ 15,763,299$ 13,841,583$ 4,415,597$ 35,555,671$ 21,674,689$ 62% 51,940,727$ 63,756,060$ (11,815,333)$ 123% Total Expenses 64,679,000$ 3,166,497$ 18,148,923$ 15,407,518$ 21,684,827$ 58,407,765$ 6,271,235$ 90% 54,985,727$ 66,171,431$ (11,185,704)$ 120% Operating Reserve 9,693,657$ 12,301,659$ 11,593,270$ 11,592,741$ Discretionary Fund 2,327,850$ 2,327,850$ 2,302,075$ 2,327,850$ Operating Budget Status Report
For the Period Ending March 31, 2022 and 2021
Period Ending March 31, 2022 Period Ending March 31, 2021 Santa Clara Stadium Authority
16 Operating Budget – Recommended Budget Amendments
From time to time, budget adjustments may be necessary to align revenues or expenditures to actual or unexpected activity during the course of a fiscal year, known after the adoption of the Stadium Authority Budget. As of the timing of the publication of this report, additional information from FY 2021/22 has resulted in recommended budget adjustments as follows:
1) Senior and Youth Program Fees (based on $0.35 per NFL game ticket) came in higher than anticipated by $4,000. A budget amendment is needed to reflect the increase in the payment to the city’s General Fund as well as the revenue to the Stadium Authority.
2) Naming Rights Commission came in high er than anticipated by $244, and staff is requesting an operating bud get amendment to acco unt for the additional commission expense incurred.
On August 31, 2022, the Stadium Authority entered into a settlement agreement with StadCo and Stadium Manager ov er disputes regarding the Operating and Management Expenses, Shared Expenses, and Capital Expenditur es that were previously withheld.
The following budget adjustments are request as a result of the settlement agreement:
3) As part of the settlement, the Stadi um Authority agreed to recognize unpaid Shared Stadium Manager Expenses that were previously withheld. A budget amendment is needed to reflect the additi onal $15.4 million of Shared Stadium Manager Expenses recognized.
4) As part of the settlement, the Stadi um Authority agreed to recognize unpaid Operating and Management Expens es that were previously withheld. A budget amendment is needed to reflect the additional $139,000 in expenses related to the use of StadCo’s Tenant Improvements and $1.1 million in other expenses related to admin and lender fees, interest expenses, and other general and administrative expenses recognized.
A reduction to the Operati ng Reserve of $244 is recomm ended to offset the actions recommended above.
Details regarding the operating budget adjustment are shown in Table 9.
17 Table 9
Adopted Amended Final Amended
Budget Budget Adjustments Budget
Resources
Revenues
NFL Ticket Surcharge 8,665,000 $ - $ - $ 8,665,000$ SBL Proceeds 23,682,000 - - 23,682,000 Interest 56,000 - - 56,000 Non-NFL Event Revenue - - - - Naming Rights 7,165,000 - - 7,165,000 Sponsorship Revenue (STR) 325,000 - - 325,000 Rent 24,762,000 - - 24,762,000 Senior & Youth Program Fees 232,000 - 3,975 235,975 Non-NFL Event Ticket Surcharge 150,000 - - 150,000 Bay Area Host Committee Reimbursement - - - - Other Revenue - - - - Revenues Subtotal 65,037,000 $ - $ 3,975$ 65,040,975$ Net Transfers - -
Total Resources 65,037,000 $ - $ 3,975$ 65,040,975$ Adopted Amended Final Amended
Budget Budget Adjustments Budget
Expenses
Shared Stadium Manager Expenses
Stadium Operations - $ 1,681,393$ 6,768,870 $ 8,450,263 $ Engineering - 1,543,240 3,538,682 5,081,922 Guest Services - 304,134 933,819 1,237,953 Groundskeeping - 93,809 542,846 636,655 Security - 378,652 2,886,321 3,264,973 Procurement 311,412 (51,902) 259,510 Insurance 3,136,000 - 68,179 3,204,179 Stadium Management Fee - - 716,640 716,640 Shared Stadium Mngr Exps Subtotal 3,136,000$ 4,312,640 $ 15,403,455 $ 22,852,095 $ Other Operating Expenses
SBL Sales and Service 3,448,000 $ - $ - $ 3,448,000$ Senior & Youth Fees (paid to City) 232,000 - 3,975 235,975 Non-NFL Event Expense 600,000 - - 600,000 Ground Rent (paid to City) 425,000 - - 425,000 Performance Rent (paid to City) - - - - Discretionary Fund Expense 250,000 - - 250,000 Utilities 1,586,000 - - 1,586,000 Use of StadCo Tenant Improvements 26,000 - 138,826 164,826 Stadium Authority G&A 5,115,000 - - 5,115,000 Naming Rights Commission 88,000 - 244 88,244 Legal Contingency 8,123,000 (4,438,640) (3,684,360) - College Football Playoff Expense - - - - Other Expenses 388,000 126,000 1,050,804 1,564,804 Transfers Out 41,262,000 - (12,908,725) 28,353,275 Contribution to Operating Reserve - - - - Other Operating Expenses Subtotal 61,543,000$ (4,312,640) $ (15,399,236)$ 41,831,124 $ Total Expenses 64,679,000 $ - $ 4,219$ 64,683,219$ Operating Reserve 9,693,657 $ (244) $ 9,693,413$ Discretionary Fund 2,327,850 $ 2,327,850 $
2021/22 Fiscal Year
Santa Clara Stadium Authority
2021/22 Operating Budget Adjustment
18 Debt Service Budget
The Stadium Authority’s FY 2021/22 debt service revenue budget of $483,000 represents anticipated contributions from the Community Facilities Distr ict (CFD). The CFD levies and collects a special hotel tax on hotel room s within the CFD. All collections from the special CFD hotel taxes are contributed to Stadium Authority to pay down the CFD Advance. The CFD Advance is payable solely from amounts actua lly received by the Stadium Authority fr om the CFD. During the current fiscal year, $1.1 million was contributed by the CFD, or 225% of the annual budget. The primary reason CFD collections have increased is due to the recovery from COVID-19 pandemic. Other Debt revenues include transfers in from the operat ing fund, which amo unted to $23.3 million or 62% of the budget.
Total Stadium Authority debt service expenses for the cu rrent reporting period were $31.8 million, 84% of the budgeted amount. Actual expenses for the StadCo Subordinate Loan were under budget due to excess cash di version to pay off the outstanding Revolving Loan balance at year-end. The debt service expenses for the CFD Advance, the Term A Loan, and the StadC o Subordinated Loan were $1. 7 million, $25.5 million, and $4.6 million, respectively.
The Stadium Authority debt service fund ended the current period with a fund balance of $26.7 million which includes $1 1.5 million in the debt service reserve account. The remaining is reserved for future debt payments.
As of March 31, 2022, the total outstanding amount of Stadium Authority debt had declined to $280.3 million. This is a reduction in principal of $16.5 million from the March 31, 2021 outstanding debt amount of $296.8 million. Overall, each loan has been paid down with the exception of the StadCo CFD Advance, which has increased by $871,610. The reason is because there were not enough contributions from the CFD to pay down the interest amounts incurred for t he fiscal year, and theref ore, the interest amounts has been capitalized to the principal loan balance.
Additional details are shown in Tables 10 and 11 and Chart 1. 19 Table 10
Budget to Budget to
Final Q1 Q2 Q3 Q4 YTD Actual Final YTD Actual
Budget Actuals Actuals Actuals Actuals Actuals Difference % Received Budget Actuals Difference % Received Resources
Revenues
Contribution from CFD 483,000 $ 158,418 $ 257,517 $ 126,862 $ 542,777 $ 1,085,574 $ (602,574) $ 225% 4,028,000 $ 282,021 $ 3,745,979 $ 7% Revenues Subtotal 483,000 $ 158,418 $ 257,517 $ 126,862 $ 542,777 $ 1,085,574 $ (602,574) $ 225% 4,028,000 $ 282,021 $ 3,745,979 $ 7% Net Transfers from Operating 37,572,000 - 13,716,691 12,144,192 (2,518,695) 23,342,188 14,229,812 62% 39,265,000 53,756,348 (14,491,348) 137% Contribution from Fund Balance - 17,479,851 (10,353,307) (8,650,152) 8,919,033 7,395,425 (7,395,425) NA - (9,275,332) 9,275,332 NA Total Resources 38,055,000 $ 17,638,270 $ 3,620,901 $ 3,620,902 $ 6,943,114 $ 31,823,187 $ 6,231,813 $ 84% 43,293,000 $ 44,763,038 $ (1,470,038) $ 103% Budget to Budget to
Final Q1 Q2 Q3 Q4 YTD Actual Final YTD Actual
Budget Actuals Actuals Actuals Actuals Actuals Difference % Used Budget Actuals Difference % Used Expenses
CFD Advance 483,000 $ 421,471 $ 426,103 $ 426,103 $ 416,840 $ 1,690,516 $ (1,207,516)$ 350% 3,989,000 $ 2,015,931 $ 1,973,069 $ 51% Term A Loan 25,529,000 16,898,728 2,876,728 2,876,728 2,876,728 25,528,912 88 100% 25,562,000 25,562,012 (12) 100% StadCo Subordinated Loan 12,043,000 318,071 318,071 318,071 3,649,547 4,603,759 7,439,241 38% 13,742,000 17,185,095 (3,443,095) 125% Total Expenses 38,055,000 $ 17,638,270 $ 3,620,901 $ 3,620,901 $ 6,943,114 $ 31,823,187 $ 6,231,813 $ 84% 43,293,000 $ 44,763,038 $ (1,470,038) $ 103% Debt Service Reserve 11,536,235 $ 11,536,235$ 11,536,235 $ 11,536,235 $ Debt Service Budget Status Report
For the Period Ending March 31, 2022 and 2021
Period Ending March 31, 2022 Period Ending March 31, 2021 Santa Clara Stadium Authority
20 Table 11
Chart 1
Type of Indebtedness
Interest
Rates
Outstanding as of
March 31, 2021 Net Change
Outstanding as of
March 31, 2022
Stadium Funding Trust Loan:
Term A Loan 5.00% 244,160,240 $ (14,022,001) $ 230,138,239 $ StadCo CFD Advance 5.73% 29,502,893 871,610 30,374,503 StadCo Subordinated Loan 5.50% 23,132,426 (3,331,476) 19,800,950 Total $ 296,795,559 $ (16,481,867) $ 280,313,692 For the Period Ending March 31, 2022
Santa Clara Stadium Authority
Debt Summary Report
21 Debt Service Budget – Recommended Budget Amendments
From time to time, budget adjustments may be necessary to align revenues or expenditures to actual or unexpected activity during the course of a fiscal year, known after the adoption of the St adium Authority Budget. CFD Advance interest expenses incurred for the fiscal year exceeded the antic ipated contributions by $1.2 million, and staff is requesting a debt service budget amendment to account for the additional interest expense incurred.
A reduction to the Debt Service Reserve in the amount of $1.2 million is recommended to offset the recommendation above.
Details regarding the debt service budget adjustment are show in Table 12.
Table 12
Final
Adopted Amended Amended
Budget Budget Adjustments Budget
Resources
Revenues
Contribution from CFD 483,000 $ - $ - $ 483,000$ Revenues Subtotal 483,000 $ - $ - $ 483,000$ Transfers in from Operating 37,572,000 - - 37,572,000 Contribution from Fund Balance - - - - Total Resources 38,055,000 $ - $ - $ 38,055,000$ Final
Adopted Amended Amended
Budget Budget Adjustments Budget
Expenses
CFD Advance 483,000 $ - $ 1,207,516$ 1,690,516 $ Term A Loan 25,529,000 - - 25,529,000 StadCo Subordinated Loan 12,043,000 - - 12,043,000 Total Expenses 38,055,000 $ - $ 1,207,516$ 39,262,516 $ Debt Service Reserve 11,536,235 $ - $ (1,207,516)$ 10,328,719 $ Santa Clara Stadium Authority
2021/22 Debt Service Budget Adjustment
2021/22 Fiscal Year
22 Capital Improvement Project Budget
As part of the Capital Expense (“CapEx”) Plan, the following projects have been completed as of the current reporting period:
Stadium and Special Event Spaces
Surveillance - Command Center Equipment
CCTV Pop Up Trailers
Security X-Ray Scanners
Security and Life Safety Partitions/Dividers
Tunnel Slip and Fall Protection
Levi's Naming Rights Signage Repair
Key Management System
RadHalo Remote Radiation Monitors
Rigaku CWL 1064nm Handheld Ra man Chemical Detector
Tru Defender FTX S1 WMD Chemical Detector
Vehicle upfits for John Deere Gator
Mass Casualty Incident Trailer
Rope Rescue Gear Including Storage Container
Stadium Personal Protective Equipment
The following CapEx projects were currently in progress at the end of the fiscal year:
Financial Management Information System Project
A total of $1,494,305 has been spent in FY 2021/22, which amounts to 10% of the budget.
The main reasons that this is below budget are (1) there has been little activity on warranty work which makes up 10% of the CIP Budget, (2) delays in projects due to staffing shortage from the contractors as a result of COVID-19, and (3) a number of projects are behind schedule due to compliance reviews of State procurement and prevailing wage laws.
On August 31, 2022, the Stadium Authorit y entered into a settlement agreement with StadCo and ManagementCo over disputes regarding the Operating and Management Expenses, Shared Expenses, and Capital Expenditures that were previously withheld. As part of the settlement, in regards to Capi tal Expenditures, the Stadium Authority agreed to discontinue the current practice of withholding payment for Capital Expenditures subject to the review and approval of the prevailing wage docum entation by Stadium Authority’s labor law compliance consul tant. Under the Se ttlement Agreement, ManagementCo further confirmed its obligation to comply with applicable laws, including Prevailing Wage Laws, and ManagementCo also implemented its new internal Prevailing Wage Laws compliance policy and procedures. Accordingly, the Stadium Authority will process the invoice payments as they come in.
Additional details are shown below in Table 13.
23 Table 13
Budget to Budget to
Final Q1 Q2 Q3 Q4 YTD Actual Final YTD Actual
Budget Actuals Actuals Actuals Actuals Actuals Difference % Received Budget Actuals Difference % Received Beginning Balances 19,438,420 $ 20,805,741 $ 20,779,512 $ 20,388,556 $ 20,007,474 $ 20,805,741 $ (1,367,321) $ 17,837,300 $ 17,010,611 $ 826,689 Resources
3,690,000 - - - 3,689,622 3,689,622 378 100% 3,582,000 4,741,431 (1,159,431) 132% - - - - - - - NA - - - NA Total Resources 23,128,420 $ 20,805,741 $ 20,779,512 $ 20,388,556 $ 23,697,096 $ 24,495,363 $ (1,366,943) $ 106% 21,419,300 $ 21,752,042 $ (332,742) $ 102% Budget to Budget to
Final Q1 Q2 Q3 Q4 YTD Actual Final YTD Actual
Budget Actuals Actuals Actuals Actuals Actuals Difference % Used Budget Actuals Difference % Used Expenses
Construction 7,116,470 - 324,661 24,808 408,016 757,485 6,358,985 11% 4,725,327 235,542 4,489,785 5% Equipment 6,120,110 26,229 66,294 356,274 288,022 736,820 5,383,290 12.0% 6,460,557 710,759 5,749,798 11% Contingency 623,935 - - - - - 623,935 0% 559,296 - 559,296 0% Stadium Warranty Related Construction 1,528,202 - - - - - 1,528,202 0% 1,528,202 - 1,528,202 0% Total Expenses 15,388,717 $ 26,229 $ 390,956 $ 381,082 $ 696,038 $ 1,494,305$ 13,894,412 $ 9.7% 13,273,382 $ 946,301 $ 12,327,081$ 7% Ending Balances 7,739,703 $ 20,779,512 $ 20,388,556 $ 20,007,474 $ 23,001,058 $ 23,001,058 $ 8,145,918 $ 20,805,741 $ Transfers In from Stadium Manager
CIP Budget Status Report
Transfers In from Operating Budget
For the Period Ending March 31, 2022 and 2021
Period Ending March 31, 2022 Period Ending March 31, 2021 Santa Clara Stadium Authority
24 City of Santa Clara Net General Fund Impact
During the current reporting per iod there was a total of $1 ,136,722 that was contributed to the General Fund as shown in Table 14. This section of the report also provides information on General Fund revenue and expenditure impacts resulting from the stadium.
Table 14
Public Safety and Administrative Cost Reimbursement
As described in earlier sections of this report, costs incurred by the City on NFL and Non- NFL Events are tracked and billed to t he Stadium Manager. Reimbursements are monitored and included in this report. Public safety costs incurred in support of NFL and Non-NFL events occurring in FY 2021/22 totaled $5,303,491 and $98,983, respectively.
Public safety costs continue to be above th e annual public safety cap. The Stadium Authority is in discussion with StadCo to renegotiate the annual public safety cap to reflect the true cost of service, which is higher than the c ap. It is one of th e outstanding claims that are currently under litigation with StadCo. As of March 31, 2022, ManagementCo, on behalf of StadCo, has paid all NFL public safety costs under protest with the pending public safety cost arbitration.
In addition to public safety costs, administrat ive costs are also tracked and billed to the Stadium Authority. These incl ude the cost of providing overall stadium management, financial, human resource, legal, and other serv ices to the Stadium Authority. In FY 2021/22, a total of $1.6 million of administrative costs were incurred by the General Fund, which have been reimbursed to the City.
Rents and Senior and Youth Fee
As noted above the City’s General Fund colle cted $425,000 in gro und rent from the Stadium Authority. Additionally, the City’s General Fund received Senior and Youth fees of $236,000 in the curr ent reporting period. See the Gl ossary for more information on these revenues and how they are calculated.
Ground Rent 425,000 $
Performance Rent -
Senior and Youth Program Fees 235,975
Tasman Lots Parking Fee 22,245
Sales Tax 453,502
Total Net General Fund Impact 1,136,722 $
City of Santa Clara
Net General Fund Impact
For Stadium Authority Fiscal Year Ending March 31, 2022 25 Other Revenue Impacts
General Fund sales tax, property tax, and transient occupancy tax (TOT) collections have benefited from the direct and indirect economic activity related to stadium events.
Food and beverage concession sales and merchandise sales at Levi’s ® Stadium are
taxable, resulting in sales tax revenue for the City. The last four quarters of sales tax collections from Levi’s® Stadium transactions generated $454,000 for the City’s General Fund. It should be noted that there is a lag in the collection of sales tax and the amount attributable to this reporting period was collected in from FY 2020/21 activity. In addition to the direct sellers at the Stadium, other businesses in S anta Clara are benefiting from the influx of people coming to attend one or more events at Levi’s® Stadium, resulting in potentially more sales tax collections for the General Fund.
In accordance with State Law, StadCo must pay possessory interest property tax based on their lease of Levi’s
® Stadium from the Stadium Authority. This revenue is collected by the county and placed into the Redevelopm ent Property Tax Trust Fund (RPTTF).
Amounts remaining in the RPTTF after payi ng any enforceable obligations of the Successor Agency are distributed to taxing ent ities in the same proportion as secured property taxes. The City’s proportion is approximately 10%.
Many stadium events bring travelers to the region, resulting in hotel stays which generate TOT collections for the City’s General Fund. Although it is impossible to say exactly what portion of the City’s TOT collections is due to the stadium, it is clear that hotels both inside and outside the City have benefited, resulting in increases in TOT collections in Santa Clara and our neighboring cities.
26 Glossary
This section of the report prov ides details behind key terms that are used in the body of this report.
Discretionary Fund – The Amended and Restated Stadium Lease Agreement describes the Non-NFL Event ticket surcharge which is imposed by the Stadi um Authority. All promotors or sponsors of ti cketed Non-NFL Events are requi red to collect a Non-NFL ticket surcharge of $4 per ticket on behalf of t he Stadium Authority. One-half of these proceeds are used to cover Stadium Aut hority operating and maintenance costs. The other one-half of the proceeds are deposited in the Stadium Authority’s discretionary fund.
If at any time the discretionary fund balance exceeds $1 million, then in consultation with the Stadium Manager, t he Stadium Authority will determi ne if provision has been made for replacement and improvement of capital improvements contemplated under the public safety plan. If not, then funds will be reserved in the discretionary fund for such purposes.
If adequate provision has been made for these items and the balance of the discretionary fund still exceeds $1 million, then up to hal f of the amount over $1 million can be transferred to the General Fund, in which event an equal amount will also be transferred from the discretionary fund to the Stadium Authority operating fund and will be included as revenue available to pay Stadium Authority expenses.
Ground Lease – The Ground Lease Agreement has an initial term of 40 years commencing on the date of substantial completion which was July 31, 2014. The amount of annual base ground rent that is payable by the Stadium Au thority to the City is noted in the chart below.
Net Non-NFL Event Revenue – Net Non-NFL Event revenue is remitted by ManagmentCo to the Stadium Authority on a yearly basis. This is done annually because the final reconciliation of the Non-NFL Event revenues and expenses does not occur until after the conclusion of each fiscal year.
Lease Year Fiscal Year
Annual Fixed
Ground Rent
1 2014/15 180,000 $
2 2015/16 215,000 $
3 2016/17 250,000 $
4 2017/18 285,000 $
5 2018/19 320,000 $
6 2019/20 355,000 $
7 2020/21 390,000 $
8 2021/22 425,000 $
9 2022/23 460,000 $
10 2023/24 495,000 $
11-15 2024/25 - 2028/29 1,000,000$
16-20 2029/30 - 2033/34 1,100,000$
21-25 2034/35 - 2038/39 1,200,000$
26-30 2039/40 - 2043/44 1,300,000$
31-35 2044/45 - 2048/49 1,400,000$
36-40 2049/50 - 2053/54 1,500,000$
27 Beginning with FY 2018/19, the Stadium Authority budgeted the Non-NFL Event activity at gross, budgeting for revenue and expenses s eparately. In the prior fiscal years that activity was budgeted as a net amount.
NFL Ticket Surcharge – The Amended and Restated Non-Relocation Agreement states that the Team will collect a 10% NFL ticket surcharge on the price of admission to all NFL games on behalf of Stadium Authority.
Non-NFL Event Ticket Surcharge – The Stadium Lease Agreem ent requires that the promoter or sponsor of any Non-NFL Event collect a Non-NFL Event ticket surcharge of $4 per ticket. The Lease Agreement sets aside one-half of the Non-NFL ticket surcharge for stadium operating and maintenance costs and one-half for discretionary expenses of the Stadium Authority.
Offsite Parking Fees – Parking lot operators who wish to operate a parking lot for sports or entertainment venues are required to go through the Cit y’s permitting process. If approved, per the City’s Municipal Fee Schedule, these operators remit an offsite parking fee for each car that is parked for sports or entertainment events. This fee is designed to recover the public safety costs associated with these permitted offsite parking lots.
Therefore, when invoicing for NFL or Non-NFL public safety costs for a particular event held at Levi’s® Stadium, the offsite parking fee that is collected for said event partly offsets the total public safety costs owed for that event. In the City’s FY 2021/22 (July 1, 2021 through June 30, 2022) the offsite parking fee is $5.91.
Performance-Based Rent - The Amended and Restated Stadium Lease Agreement and the Ground Lease Agreement both describe the performance-bas ed rent that is due to the City. (It is calculated as 50% of t he net income from Non-NFL events less performance-based rent credits. The performance-based rent credits include 50% of the fixed ground rent for the current lease year.)
Public Safety Costs – For each NFL and Non-NFL Event held at Levi’s ® Stadium, a
public safety plan is developed and implem ented. Multiple City departments provide staffing, materials, and supplies to support t he public safety plan. Services are provided through a combination of City staff, contracts with other agencies (California Highway Patrol, County Sheriff’s Office, and City of Sunnyvale) and some vendor provided services.
The Amended and Restated Stadium Lease Agreement section 7.5 states that the tenant is responsible for reimbursing the City for the public safety costs attributed to NFL events at Levi’s
® Stadium. Additionally, Article 5 of the Stadium Management Agreement notes that the Stadium Manager is responsible for paying Non-NFL Event expenses on behalf of the Stadium Authority. Ther efore, the cost of providing public safety services are tracked through the City’s financial system and invoices are sent to the Stadium Manager.
All of these costs are reimbursed to the City of Santa Clara.
28 Senior and Youth Program Fees – The Amended and Restated Stadium Lease Agreement requires that StadCo collect a S enior and Youth Progra m Fee of $0.35 per NFL ticket sold on behalf of the Stadium Aut hority. Per section 8.2 of the Ground Lease Agreement between the City and the Stadium Authority, the Stadium Authority remits this fee to the City as additional rent to support senior and youth programs in the City.
Stadium Management Fee – The Stadium Manager re ceives an annual base management fee to manage Levi’s® Stadium. The fee was $400,000 in the first lease year and increases by 3% annually as detailed in the table below. This annual base management fee is split 50/50 between StadCo and the Stadium Authority since the Stadium Manager manages the stadium year-r ound for both entities. In addition to the base management fee, the Stad ium Manager also receives a stadium marketing and booking fee (incentive fee) wh ich is based on a percentage of the amount that the net income from Non-NFL Events exceeds the marketing and booking f ee benchmark. The marketing and booking fee benchm ark was $5 million in the first lease year and also increases by 3% annually as detailed in t he table below. The annual stadium management fee for each of the first ten lease years are noted in the chart below.
Tasman Lots Parking Fees – The City collects a fee of $5 per space for all cars that are parked on the Tasman surface lots during NFL events.
Fiscal
Year
Lease
Year
Annual
Base
Stadium
Management
Fee (SCSA
Share)
Stadium
Marketing
and Booking
Fee
Benchmark
Net Income
from Non-
NFL Events
Additional
Stadium
Marketing
and Booking
Fee
Total
Stadium
Management
Fee
2014/15 1 200,000 $ 5,000,000$ 5,207,553 $ 10,378 $ 210,378 $ 2015/16 2 206,000 5,150,000 6,079,016 46,451 252,451 2016/17 3 212,180 5,304,500 5,316,894 620 212,800 2017/18 4 218,545 5,463,635 5,163,329 - 218,545 2018/19 5 225,102 5,627,544 18,591 - 225,102 2019/20 6 231,855 5,796,370 (2,741,014) - 231,855 2020/21 7 238,810 5,970,261 (476,960) - 238,810 2021/22 8 245,975 6,149,369 (288,741) - 245,975 2022/23 9 253,354 6,333,850
2023/24 10 260,955 6,523,866