SCSA
Santa Clara Stadium Authority
SANTA CLARA
STADIUM AUTHORITY
FINANCIAL STATUS REPORT
Quarter and Fiscal Year Ending
March 31, 2023
September 19, 2023
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Table of Contents
Introduction ..................................................................................................................... 2 NFL Events ..................................................................................................................... 3 Non-NFL Events .............................................................................................................. 6 Discretionary Fund ........................................................................................................ 12 Stadium Builder Licenses .............................................................................................. 12 Santa Clara Stadium Authority Budget Status Reports ................................................. 15 Operating Budget ....................................................................................................... 15 Debt Service Budget .................................................................................................. 18 Capital Improvement Project Budget ......................................................................... 21 City of Santa Clara Net General Fund Impact ............................................................... 24 Public Safety and Administrative Cost Reimbursement ............................................. 24 Rents and Senior and Youth Fee ............................................................................... 25 Other Revenue Impacts ............................................................................................. 25 Glossary ........................................................................................................................ 26
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Introduction
This Santa Clara Stadium Authority ( “Stadium Authority ”) Financial Status R eport provides information covering the fourth quarter of the Stadium Authority’s 2022/23 fiscal year (“FY”) which ended on March 31, 2023. Comparative data from prior fiscal years is also included.
In addition to these quarterly reports, the Stadium Authority produces annual financial statements. The FY 2022/23 financial statements were audited by an external audit firm and presented to the Stadium Authority’s Audit Committee on August 30, 2023. The report is being presented to the Stadium Authority Board (“Board”) on September 19, 2023 for approval. The financial statements are published on the Stadium Authority’s website.
The Stadium Authority also prepares a detailed budget prior to the beginning of each fiscal year. The FY 2022/23 budget was adopted by the Board on March 15, 2022.
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 servi ces provided by the City, including administrative and public safety, to the Forty Niners Stadium Management Company, LLC (“Stadium Manager”) 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 the Stadium Manager. Specifically, National Football League ( NFL) and Non-NFL event statistics and financial information relating to the Stadium Manager expenses are provided by the Stadium Manager. Stadium Authority staff has access to selected financial information submitted by the Stadium Manager provided through the Stadium Authority’s Financial Management System and event reports received for Non -NFL events. These reports are received 45 days after each event for events with attendance greater than 25,000. More detailed documents for the events a re received 90 days after the close of the quarter. 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 contracted with JS Held (formerly Hagen, Streiff, Newton, & Oshiro), a forensic accounting firm, to review and evaluate Non- NFL event financial information from prior years, including source documentation. This 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. Those reports are expected to be presented to the Board later this month.
The information provided is based on the best known and available information at the time of the writing of this report and is subject to further revision and review. Revisions may occur based on t he timing of revenue and expenditure activity for events in this quarter that continue beyond the timing of this report. Consequently, the Board’s notation and filing of this report should not be considered an approval of the accuracy of the information in the report.
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NFL Events
This section provides year to date and comparative data for NFL games categorized as pre-season and regular season games.
The San Francisco Forty-Niners (“49ers”) played a total of twelve NFL games (one pre- season game, nine regular season games and two playoff games) at Levi’s ® Stadium as
of March 31, 2023. There was a total of 835,001 tickets sold to these NFL games, an average of 69,583 per game. This is up by an average of 2,162 or 3% per game when compared to the same period in the prior fiscal year. The ticket sales resulted in $1 1.4 million in NFL ticket surcharge revenue (10% of t icket sales for pre-season and regular season games) to the Stadium Authority. The average NFL ticket surcharge revenue was $1,137,000 per game in the current year, which is up by $156,000 or 16% from the same period in the prior fiscal year. The Stadium Authority does not receive NFL ticket surcharge revenue for any playoff games played at Levi’s ® Stadium. A total of $250,000
of Senior and Youth Program Fees, which is based on $0.35 per NFL ticket sold up to a maximum amount of $250,000 per NFL season, were collected through the end of the fourth quarter of the fiscal year. T hese fees were transferred to the City’s General Fund in support of such programs.
A total of 89,828 cars were parked in the permitted offsite parking lots generating $551,000 in offsite parking fees. The overall number of cars parked in the permitted offsite lots declined by an average of 120 cars per game or -2% when compared to the prior fiscal year.
There was an estimated $5.7 million of NFL event public safety costs in the current reporting period which is an average of $ 476,356 per game. This is down from the prior year average of $530,349 by $53,993 or -10%. Of the $5.7 million NFL event public safety costs, $4.6 million or 81% are direct City costs and $1.0 million or 19% are outside agency costs. $ 551,000 of the total NFL event public safety costs are covered by the offsite parking fees that were collected and the remaining are invoiced to the Stadium Manager.
NFL event public safety cost invoices are provided to the Stadium Manager approximately 45 days after the game date which will be fully reimbursed to the City.
Statistics for the NFL games held at Levi’s
® Stadium in the 2022/23 fiscal year are shown
in Table 1 and comparative data from all nine years of operations can be found in Table
2. 4
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Table 1
Game 1 vs
Packers
Game 2 vs
Seahawks
Game 3 vs
Rams
Game 4 vs
Chiefs
Game 5 vs
Chargers
Game 6 vs
Saint
Game 7 vs
Dolphins
Game 8 vs
Buccaneers
Game 9 vs
Commanders
Game 10 vs
Cardinals
Game 11 vs
Seahawks
Game 12 vs
Cowboys 2022/23
08/12/22 09/18/22 10/03/22 10/23/22 11/13/22 11/27/22 12/04/22 12/11/22 12/24/22 01/07/23 01/14/23 01/22/23 YTD Total No. of Tickets Sold 66,747 69,759 69,674 69,881 69,698 69,479 69,868 69,755 69,885 69,552 70,072 70,631 835,001$ NFL Ticket Surcharge (2) 541,108$ 999,315$ 996,116$ 1,650,552$ 1,017,704$ 997,334$ 1,016,788$ 2,173,980$ 989,437$ 984,391$ -$ -$ 11,366,724$ Senior/Youth Program Fees 23,361$ 24,416$ 24,386$ 24,458$ 24,394$ 24,318$ 24,454$ 24,414$ 24,460$ 24,343$ 6,996$ -$ 250,000$ Cars Parked at Offsite Lots 4,830 6,873 6,104 7,382 8,360 8,612 8,526 8,256 7,925 7,680 7,383 7,897 89,828 City Offsite Parking Fee 29,608$ 42,131$ 37,418$ 45,252$ 51,247$ 52,792$ 52,264$ 50,609$ 48,580$ 47,078$ 45,258$ 48,409$ 550,646$ Cars Parked on Tasman Lots - - - - - - - - - - - - - City Tasman Lot Parking Fee -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Stadium Public Safety Costs (1) 410,187$ 460,737$ 473,038$ 488,910$ 472,139$ 473,623$ 484,131$ 488,005$ 447,680$ 492,284$ 479,097$ 546,442$ 5,716,274$ Less: Offsite Parking Fee Credit (29,608)$ (42,131)$ (37,418)$ (45,252)$ (51,247)$ (52,792)$ (52,264)$ (50,609)$ (48,580)$ (47,078)$ (45,258)$ (48,409)$ (550,646)$ Reimbursable Stadium Public Safety Cost 380,579$ 418,606$ 435,621$ 443,658$ 420,892$ 420,832$ 431,867$ 437,396$ 399,099$ 445,206$ 433,840$ 498,034$ 5,165,629$ Amount Reimbursed 358,350$ 374,485$ 373,088$ 341,270$ 373,280$ 367,839$ 406,187$ 431,677$ 360,557$ 405,898$ 403,215$ 462,482$ 4,658,327$ (1) Includes estimated stadium public safety costs from outside agencies. (2) NFL Ticket Surcharge excludes NFL Play-Off games as indicated on Article 1 of the Amended and Restated Team Non-Relocation Agreement between Team and SCSA.
Levi's® Stadium
2022/23 NFL Event Statistics
As of March 31, 2023
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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 2022/23 Q4 Total Total Total Total Total Total Total Total Total
No. of NFL Events 10 10 10 10 10 12 5 10 12 No. of Tickets Sold 682,095 669,826 655,891 643,189 651,237 803,524 - 674,214 835,001 NFL Ticket Surcharge 8,366,290$ 8,273,378$ 8,175,462$ 7,806,190$ 8,076,510$ 8,412,291$ -$ 9,809,009$ 11,366,724$ Senior/Youth Program Fees 238,734$ 234,439$ 229,562$ 225,116$ 227,933$ 250,000$ -$ 235,975$ 250,000$ Cars Parked at Offsite Lots 90,024 57,166 67,740 54,107 56,390 81,401 - 71,614 89,828 City Offsite Parking Fee 442,918$ 290,403$ 354,958$ 293,260$ 317,476$ 476,196$ -$ 423,238$ 550,646$ 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 (1) 2,455,404$ 2,437,902$ 3,084,850$ 2,633,295$ 2,994,735$ 5,416,926$ 887,617$ 5,303,491$ 5,716,274$ 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$ 5,716,274$ Less: Offsite Parking Fee Credit (442,918)$ (290,403)$ (354,958)$ (293,260)$ (317,476)$ (476,196)$ -$ (423,238)$ (550,646)$ 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$ 5,165,629$ 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$ 4,658,327$ 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$ 4,658,327$ (1) Includes estimated stadium public safety costs from outside agencies.
Levi's® Stadium
Historical NFL Event Statistics
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Non-NFL Events
This section provides annual and comparative data for N on-NFL Events categorized as events ranging from high school and college football games, international soccer matches, concerts, wedding fairs, and special events. During the current reporting period there were a total of 319,813 tickets sold for the seven ticketed Non-NFL events that were held, resulting in $ 1.3 million Non-NFL event ticket surcharge revenue ( from the $4 per ticket Non-NFL event surcharge). The ticketed Non-NFL events in the current reporting period were large- scale events resulting in a large increase in the ticket surcharge revenue over the same period in the prior year. There were no ticketed events held during FY 2021/22 due to the COVID-19 pandemic.
The Stadium Manager reports that t here were also 69 smaller special events held at Levi’s
® Stadium with 25,867 attendees during the current report period. This is an increase of 57 events when compared to FY 2021/22, which had 12 smaller special events with 3,698 attendees. The special events generated $2.8 million in net revenue for the Stadium Authority. Examples of these special events include corporate events of various sizes, weddings, holiday parties, high school dances, etc.
In correlation with the increase in Non-NFL events, parking at the permitted offsite parking lots also saw an increase when compared to the prior year. There were 35,302 cars parked at these offsite lots, a 100% increase from the previous year. T he City received $215,000 in related offsite parking fees as a result of these events in FY 2022/23.
Total Non-NFL event public safety costs were $2. 6 million. As noted previously, this increase in cost is due to more events being held in the current year when compared to the prior year. Of these costs, $215,000 were covered by the offsite parking fee. The remaining $2.4 million were invoiced and $2.3 million has been reimbursed to the City as of this report date.
Statistics for the seven Non-NFL ticketed events and 69 special events are shown in Table 3 and comparative data from all nine years of operations are shown in Table 4.
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Table 3
Coldplay Grupo Firme
Red Hot Chili
Peppers The Weeknd
Mexico vs
Colombia
Elton John
Day 1
Elton John
Day 2 2022/23
05/15/22 07/02/22 07/29/22 08/27/22 09/27/22 10/08/22 10/09/22 YTD Total No. of Scanned Attendees 50,308 29,995 43,205 45,716 56,404 40,275 34,410 - 300,313 No. of Tickets Sold 50,513 31,169 45,977 48,801 63,939 44,134 35,280 135 319,948 Non-NFL Ticket Surcharge 202,052$ 124,676$ 183,908$ 195,204$ 255,756$ 176,536$ 141,120$ 540$ 1,279,792$ No. of Non-NFL Special Events 69 69 Non-NFL Special Event Attendees 25,867 25,867 Cars Parked at Offsite Lots 5,666 2,502 4,914 5,518 4,953 5,823 5,926 - 35,302 City Offsite Parking Fee 33,486$ 15,337$ 30,123$ 33,825$ 30,362$ 35,695$ 36,326$ -$ 215,155$ Stadium Public Safety Costs 417,233$ 397,867$ 330,399$ 374,684$ 494,641$ 298,973$ 282,566$ 31,032$ 2,627,394$ Less: Offsite Parking Fee Credit (33,486)$ (15,337)$ (30,123)$ (33,825)$ (30,362)$ (35,695)$ (36,326)$ -$ (215,155)$ Reimbursable Public Safety Costs 383,747$ 382,529$ 300,276$ 340,858$ 464,279$ 263,278$ 246,240$ 31,032$ 2,412,239$ Amount Reimbursed 366,230$ 366,277$ 289,948$ 328,407$ 442,070$ 256,161$ 242,204$ 23,254$ 2,314,551$ Levi's® Stadium
FY 2022/23 Non-NFL Event Statistics
As of March 31, 2023
2022/23 YTD
Special Events
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Table 4
2014/15 Q4 2015/16 Q4 2016/17 Q4 2017/18 Q4 2018/19 Q4 2019/20 Q4 2020/21 Q4 2021/22 Q4 2022/23 Q4 Total Total Total Total Total Total Total Total Total
No. of non-NFL Ticketed Events 9 17 18 13 12 8 - - 7 No. of Tickets Sold 377,312 629,004 582,349 384,282 332,600 183,874 - - 319,948 Non-NFL Ticket Surcharge 1,431,540$ 2,477,084$ 2,329,396$ 1,537,128$ 1,330,400$ 735,496$ -$ -$ 1,279,792$ No. of Non-NFL Special Events 186 207 127 113 100 79 - 12 69 Non-NFL Special Event Attendees 62,357 105,997 49,151 62,917 35,676 33,535 - 3,698 25,867 Cars Parked at Offsite Lots 26,156 55,720 60,969 30,734 28,566 17,127 - - 35,302 City Offsite Parking Fee 128,688$ 278,704$ 313,979$ 165,149$ 158,623$ 98,547$ -$ -$ 215,155$ 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$ 2,627,394$ 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$ 2,627,394$ Less: Offsite Parking Fee Credit (128,688)$ (278,704)$ (313,979)$ (165,149)$ (158,623)$ (98,547)$ -$ -$ (215,155)$ Reimbursable Public Safety Costs 1,730,595$ 2,924,805$ 2,933,433$ 1,855,194$ 2,263,291$ 1,620,377$ -$ 98,983$ 2,412,239$ Amount Reimbursed 1,730,595$ 2,924,805$ 2,933,433$ 1,855,194$ 2,263,291$ 1,620,377$ -$ 98,983$ 2,314,551$ (1) Includes Non-NFL special events.
Levi's® Stadium
Historical Non-NFL Event Statistics(1)
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Table 5 summarizes ticketed Non-NFL revenues and expenditures by event. There were seven ticketed Non-NFL events held in FY 2022/23 and it generated an average net profit of $94 3,000 per event. It should be noted that the names of each event are kept confidential to maintain the Stadium Authority’s negotiations position for future ticketed events. This information will be transmitted to the Board separately from this report.
Table 5
In Millions $
Ticketed Event Revenue Expense Net
Concert 1 1.8$ (1.0)$ 0.8$
Concert 2 1.3 (0.4) 0.9
Concert 3 1.8 (0.8) 1.0
Concert 4 2.0 (0.9) 1.1
Concert 5 1.5 (1.1) 0.4
Concert 6 1.7 (0.4) 1.3
Sporting Event 1 1.4 (0.3) 1.1 Total Ticketed Non-NFL Net Revenue to Date 11.5$ (4.9)$ 6.6$ Levi's® Stadium
Ticketed Non-NFL Events Revenue and Expenditure Summary As of March 31, 2023
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Table 6 and 7 show net revenue for Non- NFL events by event type and event revenue and expense by category. For FY 2022/23, the Stadium Manager provided a projection of Non-NFL events net profits of a range from $250,000 to $1,750,000, as cited in the FY 2022/23 Adopted Stadium Authority Budget. In FY 2022/23, ticketed events and non- ticketed special events contributed $6.5 million and $2.8 million in net profits, respectively.
Offset by $502,000 of non-event specific other operating expenses, the Stadium Manager reported a net revenue of $8.8 million for the current reporting period.
Table 6
No. of
Events Net Revenue
Ticketed Events
Concerts 6 6,097,521$
Sporting Events:
Soccer 1 423,573
Net Revenue from Ticketed Events 7 6,521,094$
Subtotal Ticketed Events - Other Expenses (2) -$
Net Revenue from Special Events (weddings, corporate events, etc.) 69 2,789,761 Other Operating Expenses (1) (501,688)
Net Revenue from Non-NFL Events (2) 76 8,809,167$
Total Performance Rent Paid to City's General Fund (3) -$ (1) Other Operating Expenses are expenses not attributable to a specific event.
Levi's® Stadium
Net Revenue for Non-NFL Events by Event Type
FY 2022/23
Event Type
(2) Net Revenue from Non-NFL Events does not include Non-NFL Event Ticket Surcharge of $1.3 million. (3) Performance Rent is calculated as 50% of the net revenue from Non-NFL events less performance-based rent credits. Those credits include 50% of Ground Rent, Public Safety Costs exceeding the threshold, and other potential credits. The calculation of those credits are in dispute and part of the parties' pending Public Safety Costs arbitration. 11 19929468.1
Table 7
2022/23
YTD Total
REVENUE:
Special Event Revenue 7,328,216$
Ticket Platform Fees 4,511,710
Suite Ticket Revenue 718,948
Parking 1,977,593
Food & Beverage - Ticketed Events 2,357,359
Food & Beverage - Special Events 752,493
Miscellaneous(2) 2,828,692
Total Revenue 20,475,011$
EXPENSE:
Public Safety/Security 4,490,035$
Event Staff 4,370,057
Parking 1,121,598
Food & Beverage - Special Events 4,130,071
General Event Related Expenses 5,231,543
Net Expense Reimbursements - Ticketed Events (1) (9,079,884) Miscellaneous(3) 1,402,424
Total Expense 11,665,844$
Total Non-NFL Net Revenue 8,809,167$
Levi's® Stadium
Non-NFL Event Results by Category
As of March 31, 2023
(1) All Seating Bowl Revenue is allocated for distribution to the Event Licensee and is not considered as Stadium Authority Revenue. Revenue from Event Licensee is received in the form of expense reimbursements. (2) Includes venue rental fees, net merchandise sales, interest income, and other revenues. (3) Includes catered events department staff costs, non-event specific staff costs, and other expenses. 12 19929468.1
Discretionary Fund
The Discretionary Fund is funded by revenue equal to 50% of the N on-NFL Ticket Surcharge of $4 per ticket. The seven ticketed Non-NFL events contributed $640,000 to the Discretionary Fund in the report ing period. The Stadium Authority also transferred $1.3 million out of the Discretionary Fund to contribute $650,000 to General Fund and $650,000 to the Stadium Authority’s operating funds in FY 2022/23. Table 8 shows the revenues and expenses in the D iscretionary Fund since FY2014/15. The balance at the end of this reporting period was $1.7 million.
Table 8
Stadium Builder Licenses
The total principal value of currently active Stadium Builder Licenses ( “SBLs”) is $547.2 million and, as of March 31, 2023, 96% of the total principal value of all SBLs sold (i.e., $522.5 million) had been collected. Payment for the sale of SBLs are financed over 10 years.
SBL holders that finance their purchase pay an annual interest rate of 8.5% and payments are due by March 1 st each year. The majority of SBL holders make their payments on time. F or those that do not pay on time, SBL service staff , working for the Stadium Manager on the Stadium Authority’s behalf, contact the SBL holders and attempt to collect the full amounts owed. Ultimately, a SBL can be defaulted for non-payment. Once a SBL is defaulted, the SBL holder in default loses their right to buy season tickets as well as their priority rights to tickets to Non-NFL Events, and forfeits any money they had invested in the SBL. Defaulted SBLs are then available for resale.
There is a total of 63,215 currently active SBLs, or 96% of the 66,136 sellable SBL seats as of March 31, 2023. This is an increase of 1,260 from the total active SBLs at the end of the prior fiscal year (March 31, 202 2). The main reasons for the increase are due to sale of new SBLs offset by the customer seat relocation pro gram and default buy back.
The customer seat relocation program allows customers to trade in their SBLs in return Fiscal Year
Beginning
Balance Revenue Expenses Ending Balance
2014/15 -$ 715,770$ -$ 715,770$ 2015/16 715,770 1,238,542 714,028 1,240,284 2016/17 1,240,284 1,164,698 699,129 1,705,853 2017/18 1,705,853 768,564 1,209,342 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 2022/23 2,327,850 639,896(1)
1,300,051 1,667,695
Discretionary Fund Reserve
(1) This amount represents the current surcharges transferred to the Discretionary Fund. 13 19929468.1
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, 1,594 SBLs were sold for a total face value of $11.7 million. The customer seat relocation program resulted in an increase of $1. 2 million to the SBL face value while netting 500 more SBLs. There were also 834 SBLs defaulted during the quarter with a face value of $5.0 million.
Additional details regarding currently active SBLs as of March 31, 2023 are noted in Table
9. 14
19929468.1
Table 9
SBL Seats
Available
SBL Seats Sold
as of 3/31/22
New SBL
Sales
Net SBL
Relocations
SBL
Defaults Other SBL Seats
Sold SBL Value SBL Collected % SBL Principal
Collected
100 100 - - - - 100 14,082,625$ 13,538,758$ 96.1% 942 928 4 10 - - 942 75,360,000$ 74,381,565$ 98.7% 2 2 - - - - 2 80,000$ 79,591$ 99.5% 4,945 4,549 84 (12) (40) - 4,581 137,430,000$ 132,981,027$ 96.8% 3,475 2,894 73 (10) (20) - 2,937 58,740,000$ 56,123,961$ 95.5% 70 - 64 - 0 - 64 1,120,000$ 576,963$ 51.5% 7 7 - - - - 7 105,000$ 104,990$ 100.0% 2,163 2,199 45 (9) (19) - 2,216 26,592,000$ 24,932,136$ 93.8% 7 7 - - - - 7 70,000$ 69,997$ 100.0% 20,651 20,850 369 (13) (248) - 20,958 125,748,000$ 119,519,497$ 95.0% 14,307 14,037 543 22 (231) - 14,371 71,855,000$ 65,950,900$ 91.8% 916 919 6 1 (2) - 924 3,696,000$ 3,668,922$ 99.3% 91 91 - - - - 91 273,000$ 275,257$ 100.8% 40 44 - - - - 44 110,000$ 99,502$ 90.5% 18,392 15,296 406 511 (273) - 15,940 31,880,000$ 30,171,310$ 94.6% 28 32 - - (1) - 31 31,000$ 30,876$ 99.6% 66,136 61,955 1,594 500 (834) - 63,215 547,172,625$ 522,505,252$ 95.5% Plus: Interest on financed SBLs 64,636,840$
Total Principal & Interest 587,142,092$
(1) This table does not include $29.1 million that has been collected life-to-date from defaulted SBL holders.
Total
10,000
Santa Clara Stadium Authority
Currently Active Stadium Builder License (SBL) Summary (1) Through March 31, 2023
Seat Value
141,392
80,000
40,000
30,000
20,000
15,000
12,000
6,000
5,000
4,000
3,000
2,500
2,000
1,000
17,500
15 19929468.1
Santa Clara Stadium Authority Budget Status Reports
Operating Budget
With FY 2022/23 complete, total operating revenues for the current reporting period were $84.9 million representing 104% of the overall budget for revenues. Stadium rent earned from StadCo totaled $24.8 million. During the year, the Stadium Authority collected $24.9 million in SBL proceeds or 101 % of what was budgeted. SBL proceeds are expected to achieve budgeted level as annual payment for financed SBL payment plans are due in March. All SBL proceeds are to be transferred to the debt service fund per applicable loan agreements. The Stadium Authority also collected NFL ticket surcharges, sponsorship revenue, naming rights revenue, and senior & youth program fees all of which are within the budget this fiscal year. In addition, the Stadium Authority reported $8.8 million in revenues and $1.3 million in ticket surcharges from Non-NFL events in FY 2022/23. This is the first year in which the Stadium Authority report s revenues since the start of the pandemic in 2020.
On August 31, 2022, the Stadium Authority entered into a settlement agreement with StadCo and the Stadium Manager over disputes regarding the o perating and management expenses, shared expenses, and capital expenditures that were previously withheld. As part of the settlement, the Stadium Authority agreed to timely pay for the budgeted expense for its share of shared stadium manager expenses and other expenses for the current fiscal year, with Stadium Authority reserving all rights to confirm or dispute charges paid. This settlement does not include Stadium Authority making payments to StadCo for NFL public safety costs and NFL- SBL buffet costs , which are part of the parties’ pending arbitrations.
Total operating expenses were $19.3 million, or 83% of the annual budget. The s hared stadium manger expenses were at 94% or $ 11.7 million of the $1 2.5 million budgeted amount, and SBL Sales & Service expenses were 103 % of the budget , or $2.2 million.
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 1 st through January 31 st (Tenant Season). Therefore, utility costs are 85% of the budget for the year , or $ 1.2 million.
Transfers out for debt service and capital expenditures fund amounted to $ 46.1 million and $3.8 million, respectively . Lastly, Stadium Authority G&A costs were at $2.3 million or 54% of the budget.
Additional details are shown in Table 10.
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Table 10
Budget to Budget to
Final Q1 Q2 Q3 Q4 YTD Actual % Final YTD Actual %
Budget Actuals Actuals Actuals Actuals Actuals Difference Received Budget Actuals Difference Received Revenue
NFL Ticket Surcharge 11,367,000$ -$ 1,540,422$ 8,841,911$ 984,391$ 11,366,724$ 276$ 100% 8,665,000$ 9,809,009$ (1,144,009)$ 113% SBL Proceeds 24,528,000 - 12,382,812 2,078,722 10,428,783 24,890,317 (362,317) 101% 23,682,000 27,279,416 (3,597,416) 115% Interest 1,037,000 60,600 267,337 562,345 832,658 1,722,940 (685,940) 166% 56,000 24,692 31,308 44% Net Revenues from Non-NFL Events 7,262,000 - - - 8,953,450 8,953,450 (1,691,450) 123% - - - NA Naming Rights 11,016,000 3,635,630 3,635,630 - 3,744,699 11,015,959 41 100% 7,165,000 3,529,738 3,635,262 49% Sponsorship Revenue (STR) 405,000 148,143 81,250 81,250 274,891 585,534 (180,534) 145% 325,000 343,426 (18,426) 106% Rent 24,762,000 5,640,899 7,564,501 6,190,500 5,366,100 24,762,000 - 100% 24,762,000 24,762,000 - 100% Senior & Youth Program Fees 250,000 - 47,777 170,884 31,339 250,000 - 100% 235,975 235,975 - 100% Non-NFL Event Ticket Surcharge 1,284,000 201,912 500,968 576,232 680 1,279,792 4,208 100% 150,000 - 150,000 0% Other Revenue - - - - 68,874 68,874 (68,874) NA - 550,600 (550,600) NA Total Revenue 81,911,000$ 9,687,184$ 26,020,697$ 18,501,844$ 30,685,865$ 84,895,590$ (2,984,590)$ 104% 65,040,975$ 66,534,856$ (1,493,881)$ 102% Transfers In
Transfer In from Debt Service Fund(1) -$ -$ -$ -$ -$ -$ -$ NA -$ 6,790,483$ (6,790,483)$ NA Total Transfers In -$ -$ -$ -$ -$ -$ -$ NA -$ 6,790,483$ (6,790,483)$ NA 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
Shared Stadium Manager Expenses
Stadium Operations 3,827,196$ 832,211$ 1,081,387$ 956,799$ 624,886$ 3,495,283$ 331,913$ 91% 8,709,773$ 8,709,773$ -$ 100% Engineering 2,488,872 573,927 670,509 622,218 808,230 2,674,884 (186,012) 107% 5,081,922 5,081,922 - 100% Guest Services 586,968 125,206 168,278 146,742 (45,125) 395,101 191,867 67% 1,237,953 1,237,953 - 100% Groundskeeping 497,556 30,642 218,136 124,389 74,488 447,655 49,901 90% 636,655 636,655 - 100% Security 1,626,828 129,989 683,425 406,707 27,746 1,247,867 378,961 77% 3,264,973 3,264,973 - 100% Insurance 3,230,000 2,935,718 (1,320,586) 807,566 807,565 3,230,263 (263) 100% 3,204,179 3,204,179 - 100% Stadium Management Fee 253,000 - - - 253,354 253,354 (354) 100% 716,640 716,640 - 100% Shared Stadium Mngr Exps Subtotal 12,510,420$ 4,627,693$ 1,501,149$ 3,064,421$ 2,551,144$ 11,744,407$ 766,013$ 94% 22,852,095$ 22,852,095$ -$ 100% Other Operating Expenses
SBL Sales and Service 2,089,000$ 696,308$ 348,154$ 522,231$ 591,094$ 2,157,787$ (68,787)$ 103% 3,448,000$ 1,753,451$ 1,694,549$ 51% Senior & Youth Fees (paid to City) 250,000 - 47,777 170,884 31,339 250,000 - 100% 235,975 235,975 - 100% Non-NFL Event Expense - - - - - - - NA 600,000 288,741 311,259 48% Ground Rent (paid to City) 460,000 - 460,000 - - 460,000 - 100% 425,000 425,000 - 100% Performance Rent (paid to City) - - - - - - - NA - - - NA Discretionary Fund Expense 1,300,000 - - - 650,000 650,000 650,000 50% 250,000 - 250,000 0% Utilities 1,444,000 962,496 - - 263,098 1,225,594 218,406 85% 1,586,000 1,079,233 506,767 68% Use of StadCo Tenant Improvements 82,000 11,602 14,188 47,029 10,153 82,972 (972) 101% 164,826 164,826 - 100% Stadium Authority G&A 4,205,000 515,591 635,415 458,421 664,636 2,274,063 1,930,937 54% 5,115,000 2,923,587 2,191,413 57% Naming Rights Commission 91,000 45,445 - 45,446 - 90,891 109 100% 88,244 88,244 - 100% Legal Contingency 89,011 - - - - - 89,011 0% - - - NA Other Expenses 723,000 240,879 120,440 128,774 (63,371) 426,722 296,278 59% 1,564,804 1,564,804 - 100% Other Operating Expenses Subtotal 10,733,011$ 2,472,321$ 1,625,974$ 1,372,785$ 2,146,949$ 7,618,029$ 3,114,982$ 71% 13,477,849$ 8,523,861$ 4,953,988$ 63% Total Expenses 23,243,431$ 7,100,014$ 3,127,123$ 4,437,206$ 4,698,093$ 19,362,436$ 3,880,995$ 83% 36,329,944$ 31,375,956$ 4,953,988$ 86% Transfers Out
Debt Service 46,341,580$ -$ 12,337,956$ 13,891,806$ 19,870,180$ 46,099,942$ 241,638$ 99% 37,572,000$ 30,132,671$ 7,439,329$ 80% Capital Expenditures Reserve 3,801,000 - - - 3,800,310 3,800,310 690 100% 3,690,000 3,689,622 378 100% Discretionary Fund Reserve 642,000 - 163,294 189,556 287,046 639,896 2,104 100% - - - NA Operating Reserve 7,702,000 - - - 13,036,663 13,036,663 (5,334,663) 169% - - - NA Renovation/Demolition Reserve 7,031,000 - - - 5,323,390 5,323,390 1,707,610 76% - - - NA Total Transfers Out 65,517,580$ -$ 12,501,250$ 14,081,362$ 42,317,589$ 68,900,201$ (3,382,621)$ 105% 41,262,000$ 33,822,293$ 7,439,707$ 82% Changes in Reserves
Operations and Maintenance Reserve (12,326,081)$ -$ -$ (12,326,081)$ -$ (12,326,081)$ -$ 100% -$ -$ -$ NA Legal Contingency Reserve - Buffet Costs 2,075,070 - - 2,075,070 - 2,075,070 - 100% - - - NA Legal Contingency Reserve - Public Safety Costs 3,401,000 - - 3,401,000 - 3,401,000 - 100% - - - NA Total Change in Reserves (6,850,011)$ -$ -$ (6,850,011)$ -$ (6,850,011)$ -$ 100% -$ -$ -$ NA Santa Clara Stadium Authority
Operating Budget Status Report
For the Period Ending March 31, 2023 and 2022
Period Ending March 31, 2023 Period Ending March 31, 2022 17 19929468.1
Operating Budget – Recommended Budget Adjustments
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.
On March 7, 2023, the Stadium Authority Board adopted the Santa Clara Stadium Authority FY 2023/24 Operating, Debt Service, and Capital Budget which also includes projected revenues, expenses, and transfers out for FY 2022/23. The following budget adjustments are requested based on the projecte d actuals reported:
1) SBL Sales and Service expenses were higher than anticipated due to increase level of support needed to manage the current SBL activities. A budget adjustment of $68,787 is needed to reflect the increase in SBL expenses to the Stadium Manager.
2) Use of StadCo Tenant Improvement expenses incurred were higher than budgeted due to more Non-NFL events held in FY 2022/23. A budget adjustment of $972 is needed to reflect the increase in payment to StadCo.
18 19929468.1
Debt Service Budget
The Stadium Authority’s FY 2022/23 debt service revenue budget of $2.3 million represents anticipated contributions from the Community Facilities District (CFD). CFD levies and collects a special hotel tax on hotel rooms 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 received by the Stadium Authority from the CFD. During FY 2022/23, $2.1 million was contributed by the CFD, or 92% 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 operating fund, which amounted to $46.1 million or 99% of the budget.
Total Stadium Authority debt service expenses for the current reporting period were $48.6 million, 100% of the budgeted amount. The debt service expenses for the CFD Advance, the Term A Loan, and the StadCo Subordinated Loan w ere $2.2 million, $25.5 million, and $20.8 million, respectively. The Stadium Authority debt service fund ended the year with a fund balance of $25.3 million which includes $11.5 million in the debt service reserve account. The remaining is reserved for future debt payments.
As of March 31, 2023, the total outstanding amount of Stadium Authority debt had declined to $2 45.3 million. This is a reduction in principal of $35 million from the March 31, 2022 outstanding debt amount of $ 280.3 million. The Stadium Authority also paid off the StadCo Subordinate Loan with excess revenues in FY 2022/23.
Additional details are shown in Tables 11 and 12 and Chart 1. 19 19929468.1
Table 11
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 Fund Balance
Required Debt Service Reserve 11,536,235$ 11,536,235$ 11,536,235$ 11,536,235$ 11,536,235$ 11,536,235$ -$ 100% 11,536,235$ 11,536,235$ -$ 100% Debt Service Reserve 12,532,334 14,103,958 (4,267,484) 4,860,578 16,068,380 14,103,958 (1,571,624) 113% 11,168,171 21,499,383$ (10,331,212) 193% Total Beginning Fund Balance 24,068,569$ 25,640,193$ 7,268,751$ 16,396,813$ 27,604,615$ 25,640,193$ (1,571,624)$ 107% 22,704,406$ 33,035,618$ (10,331,212)$ 146% Revenue
Contribution from CFD 2,323,000$ 611,227$ 287,529$ 953,447$ 274,613$ 2,126,816$ 196,184$ 92% 483,000$ 1,085,574$ (602,574)$ 225% Total Revenues 2,323,000$ 611,227$ 287,529$ 953,447$ 274,613$ 2,126,816$ 196,184$ 92% 483,000$ 1,085,574$ (602,574)$ 225% Transfers In
Transfers In from Operating 46,341,580$ -$ 12,337,956$ 13,891,806$ 19,870,180$ 46,099,942$ 241,638$ 99% 37,572,000$ 30,132,671$ 7,439,329$ 80% Transfers In from Fund Balance
Total Transfers In 46,341,580$ -$ 12,337,956$ 13,891,806$ 19,870,180$ 46,099,942$ 241,638$ 99% 37,572,000$ 30,132,671$ 7,439,329$ 80% Total Source of Funds 72,733,149$ 26,251,420$ 19,894,236$ 31,242,066$ 47,749,408$ 73,866,951$ (1,133,802)$ 102% 60,759,406$ 64,253,863$ (3,494,457)$ 106% 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 2,241,000$ 433,923$ 544,403$ 684,431$ 585,721$ 2,248,478$ (7,478)$ 100% 1,690,516$ 1,690,516$ -$ 100% Term A Loan 25,494,000 17,415,690 2,692,691 2,692,691 2,692,691 25,493,763 237 100% 25,529,000 25,528,912$ 88 100% StadCo Subordinated Loan 20,847,580 1,133,056 260,329 260,329 19,193,325 20,847,039 541 100% 12,043,000 4,603,759$ 7,439,241 38% Total Expenses 48,582,580$ 18,982,669$ 3,497,423$ 3,637,451$ 22,471,737$ 48,589,280$ (6,700)$ 100% 39,262,516$ 31,823,187$ 7,439,329$ 81% Transfers Out
Transfers Out to Operating Fund -$ -$ -$ -$ -$ -$ -$ NA -$ 6,790,483$ (6,790,483)$ NA Total Transfers Out -$ -$ -$ -$ -$ -$ -$ NA -$ 6,790,483$ (6,790,483)$ NA Ending Fund Balance
Required Debt Service Reserve 11,536,235$ 11,536,235$ 11,536,235$ 11,536,235$ 11,536,235$ 11,536,235$ -$ 100% 11,536,235$ 11,536,235$ -$ 100% Debt Service Reserve 12,614,334 (4,267,484) 4,860,578 16,068,380 13,741,436 13,741,436 (1,127,102) 109% 9,960,655 14,103,958$ (4,143,303) 142% Total Ending Fund Balance 24,150,569$ 7,268,751$ 16,396,813$ 27,604,615$ 25,277,671$ 25,277,671$ (1,127,102)$ 105% 21,496,890$ 25,640,193$ (4,143,303)$ 119% Total Use of Funds 72,733,149$ 26,251,420$ 19,894,236$ 31,242,066$ 47,749,408$ 73,866,951$ (1,133,802)$ 102% 60,759,406$ 64,253,863$ (3,494,457)$ 106% Debt Service Budget Status Report
For the Period Ending March 31, 2023 and 2022
Period Ending March 31, 2022
Santa Clara Stadium Authority
Period Ending March 31, 2023
20 19929468.1
Table 12
Chart 1
Type of Indebtedness
Interest
Rates
Outstanding as of
March 31, 2022 Net Change
Outstanding as of
March 31, 2023
Stadium Funding Trust Loan:
Term A Loan 5.00% 230,138,240$ (14,723,000)$ 215,415,240$ StadCo CFD Advance 5.73% 30,374,502 (515,005) 29,859,497 StadCo Subordinated Loan 5.50% 19,800,950 (19,800,950) - Total $ 280,313,692 $ (35,038,954) $ 245,274,737 Period Ending March 31, 2023
Santa Clara Stadium Authority
Debt Summary Report
$-
$100
$200
$300
$400
$500
$600
$700
Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Total Outstanding Debt (in millions)
Construction Loan StadCo Agency Advance Term B Loan
Term A Loan StadCo CFD Advance StadCo Subordinated Loan $41.1
$396.1
$653.4
$561.6
$464.7
$429.8
$382.7
$325.3$340.2
$296.8 $280.3
$245.2
21 19929468.1
Capital Improvement Project Budget
As part of the Capital Expense (“CapEx”) Plan, the following projects have been completed as of the current reporting period:
• Financial Management Information System
• Command Post Communication Equipment
• Gold Lot 4 and 5 Lighting
• Rust Prevention Mitigation
• Mechanical and Electrical Closet Lighting
• License Plate Reader at Vehicle Entry Gates
• Mobile Security Closed Circuit Television
• Stadium Insulation
• Non-Slip Floor Matting
• Lift Station
• Loading Dock Lighting
• Command Post Dispatch Club Space Flooring
• Private Lactation Spaces
• Levi’s Naming Rights Existing Signage Lighting and Driver Repair • Creston Control & Building Operating System Upgrades
• Lifepak CR2 AEDs Replacement
• Security 24/7 Gate C Employee Entrance Booth
• Software Upgrade to Genetec 5.8
• Parking Lot Camera Upgrades
The following CapEx projects are currently in progress:
• Broadcast Booth Power
• Updated Stadium Wayfinding Signage
• Stadium Event Signage
• Women’s Locker Room
• Automatic Logic Control Building Engineering System
• Plumbing
• Electrical / Data Distribution Expansion – Security Screening Location • North East Lobby Security Desk Enhancements
• Stationary Electrical Pressure Washers
• Stadium Event Power Upgrades & Switchgear Electrical
• Aesthetic Improvements – Premium Areas/Special Event Spaces • Overhead Doors, Motors, Sensors, and Track Replacements • Coatings Main Deck
• LED Retrofit Project – Exterior Luminaire Light Fixtures • Distribution – High Voltage (PMSGT, Battery & 12KV Main Circuit Breakers) • New Seating - Bowl Padded Seat Replacement
• Concrete Replacements
• Radio Booth Cabling
• CO2 Monitoring & Sensors for Code Compliance
22 19929468.1
• Replace Furniture
• Cooling Towers
• Variable Frequency Drive(s)
• Install New Kitchen Exhaust Fans Throughout the Building • Smoke Evacuation System – Fire Smoke Curtain Replacement • Bowl Camera Upgrade/Refurbishment
• IT: Replace End of Life Equipment
• Police: Enclosed Trailer
A total of $3.9 million has been spent in FY 2022/23, which amounts to 17% of the budget.
While there have been delays in projects due to staffing shortage from the contractors as a result of COVID -19, activity is expected to pick up on projects continuing into FY 2023/24.
On August 31, 2022, the Stadium Authority entered into a settlement agreement with StadCo and the Stadium Manager over disputes regarding the o perating and management expenses, shared expenses, and capital expenditures that were previously withheld. As part of the settlement, in regard to Capital Expenditures, the Stadium Authority agreed to discontinue the temporary practice of withholding payment for Capital Expenditures subject to the review and approval of the prevailing wage documentation by Stadium Authority’s labor law compliance consultant. Under the Settlement Agreement, Stadium Manager further confirmed its obligation to comply with applicable laws, including Prevailing Wage Laws, and Stadium Manager also implemented its new internal Prevailing Wage Laws compliance policy and procedures. Accordingly, the Stadium Authority will process the invoice payments as they come in.
Additional details are shown below in Table 13.
23 19929468.1
Table 13
Budget to Budget to
Final Q1 Q2 Q3 Q4 YTD Actual Final YTD Actual
Budget Actuals Actuals Actuals Actuals Actuals Difference % Received Budget Actuals Difference % Received Beginning Fund Balances 22,103,296$ 23,001,058$ 22,850,847$ 22,015,298$ 20,671,338$ 23,001,058$ (897,762)$ 104% 19,438,420$ 20,805,741$ (1,367,321)$ 107% Revenue
Interest -$ -$ -$ -$ 83,713$ 83,713$ (83,713)$ NA -$ -$ -$ NA Total Revenue -$ -$ -$ -$ 83,713$ 83,713$ (83,713)$ NA -$ -$ -$ NA Transfers In
Transfers In from Operating 3,800,310$ -$ -$ -$ 3,800,310$ 3,800,310$ -$ 100% 3,690,000$ 3,689,622$ 378$ 100% Total Transfers In 3,800,310$ -$ -$ -$ 3,800,310$ 3,800,310$ -$ 100% 3,690,000$ 3,689,622$ 378$ 100% Total Source of Funds 25,903,606$ 23,001,058$ 22,850,847$ 22,015,298$ 24,555,361$ 26,885,081$ (981,475)$ 104% 23,128,420$ 24,495,363$ (1,366,943)$ 106% 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 14,034,892$ 52,627$ 461,087$ 1,197,977$ 1,289,854$ 3,001,545$ 11,033,347$ 21% 7,116,470$ 757,485$ 6,358,985$ 11% Equipment 6,602,240 97,584$ 374,462$ 145,983$ 285,001$ 903,030 5,699,210 14% 6,120,110 736,820 5,383,290 12% Contingency & Misc 962,743 -$ -$ -$ 4,260$ 4,260 958,483 0% 623,935 - 623,935 0% Stadium Warranty Related Construction 1,528,202 -$ -$ -$ -$ - 1,528,202 0% 1,528,202 - 1,528,202 0% Total Expenses 23,128,077$ 150,211$ 835,549$ 1,343,960$ 1,579,115$ 3,908,835$ 19,219,242$ 17% 15,388,717$ 1,494,305$ 13,894,412$ 10% Ending Fund Balance 2,775,529$ 22,850,847$ 22,015,298$ 20,671,338$ 22,976,246$ 22,976,246$ (20,200,717)$ 828% 7,739,703$ 23,001,058$ (15,261,355)$ 297% Total Use of Funds 25,903,606$ 23,001,058$ 22,850,847$ 22,015,298$ 24,555,361$ 26,885,081$ (981,475)$ 104% 23,128,420$ 24,495,363$ (1,366,943)$ 106% CIP Budget Status Report
For the Period Ending March 31, 2023 and 2022
Period Ending March 31, 2022Period Ending March 31, 2023
24 19929468.1
City of Santa Clara Net General Fund Impact
During the current reporting period there was a total of $1. 4 million 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 E vents are tracked and billed to the Stadium Manager. R eimbursements are monitored and included in this report. Public safety costs incurred in support of NFL and Non-NFL events occurring in FY2022/23 totaled $5.7 million and $ 2.6 million, respectively. These reimbursements come from a combination of payments from the Stadium Manager and the offsite parking fees that were collected. The City has received $5.3 million in reimbursements as of the end of August 2023.
Public safety costs continue to be above the annual public safety cap. Pursuant to the Amended and Restated Lease, t he Stadium Authority was in discussion with StadCo to adjust the annual public safety cap to reflect the true cost of service, which is higher than the cap. An adjustment to the public safety cap is one of the outstanding claims that is currently at issue in the public safety costs arbitration with StadCo. As of August 31, 2023, Stadium Manager, on behalf of StadCo, has paid outstandingNFL public safety costs under protest, pending the public safety cost arbitration.
In addition to public safety costs, administrative costs are also tracked and billed to the Stadium Authority . These include the cost of providing overall stadium management, financial, human resource, legal, and other services to the Stadium Authority. In FY 2022/23, a total of $1.5 million of administrative costs were incurred by the General Fund, which have been reimbursed to the City.
Ground Rent 460,000$
Performance Rent -$
Senior and Youth Fee 250,000
Tasman Lots Parking Fee -
Sales Tax 739,805
1,449,805$
City of Santa Clara
Net General Fund Impact
For Stadium Authority
Total Net General Fund Impact
Period Ending March 31, 2023
25 19929468.1
Rents and Senior and Youth Fee
As noted above the City’s General Fund collected ground rent of $460,000. Additionally, the Senior and Youth Fee generated $250,000, of which the entire amount forwarded to the City in support of senior and youth programs. See the Glossary for more information on these revenues and how they are calculated.
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 $740,000 for the City’s General Fund. In addition to the direct sellers at the Stadium, other businesses in Santa Clara are benefiting from the influx of people coming to attend one or more events at Levi’s ® Stadium, resulting in 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 Redevelopment Property Tax Trust Fund (RPTTF).
Amounts remaining in the RPTTF after paying any enforceable obligations of the Successor Agency are distributed to taxing entities 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 difficult to determine the portion of the City’s TOT collections that are attributable 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. We continue to work with the hotels and Discover Santa Clara to survey and provide projections regarding TOT collections that result from Levi’s
® Stadium events.
26 19929468.1
Glossary
This section of the report provides 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 Stadium Authority. All promotors or sponsors of ticketed N on-NFL Events are required to collect a N on-NFL ticket surcharge of $4 per ticket on behalf of the Stadium Authority. One- half of these proceeds are used to cover Stadium Authority 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, the Stadium Authority will determine 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 half of the amount over $1 million can be transferred to the General Fund, in which event an equal amount will also be transferred from the discretionary fund to the Stadium Authority operating fund and will be included as revenue available to pay Stadium Authority expenses.
Ground Lease – The Ground Lease Agreement has an initial term of 40 years commencing on the date of substantial completion which was July 31, 2014. The amount of annual base ground rent that is payable by the Stadium Authority to the City is noted in Table 15 below.
Table 15
Net Non-NFL Event Revenue – Net Non-NFL Event revenue is remitted by the Stadium Manager to the Stadium Authority on a yearly basis. This is done annually because the Lease Year Fiscal Year
Annual Fixed
Ground Rent
1 2014/15 180,000$
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 19929468.1
final reconciliation of the N on-NFL event revenues and expenses does not occur until after the conclusion of each fiscal year.
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 Agreement 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 City’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 N on-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 2022/23 (July 1, 2022 through June 30, 2023) the offsite parking fee is $6.13.
Performance-Based Rent – The Amended and Restated Stadium Lease Agreement and the Ground Lease Agreement both describe the performance-based rent that is due to the City . (It is calculated as 50% of the net income from N on-NFL event s 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 implemented. Multiple City depar tments provide staffing, materials, and supplies to support the 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 N on-NFL Event expenses on behalf of the Stadium Authority. The refore, 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.
Senior and Youth Program Fees – The Amended and Restated Stadium Lease Agreement requires that StadCo collect a Senior and Youth Program Fee of $0.35 per 28 19929468.1
NFL ticket sold on behalf of the Stadium Authority up to a maximum of $250,000 per Lease Year. 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 receives 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 -round for both entities. In addition to the base management fee, the Stadium Manager also receives a stadium marketing and booking fee (incentive fee) which is based on a percentage of the amount that the net income from Non-NFL Events exceeds the marketing and booking fee benchmark. The marketing and booking fee benchmark was $5 million in the first lease year and also increases by 3% annually as detailed in the table below . The an nual stadium management fee for each of the first ten lease years are noted in Table 16 below.
Table 16
Tasman Lots Parking Fees – The City collects a fee of $5 per space for all cars that are parked on the Tasman surface lots during NFL events. It should be noted that ground leases for the Tasman Lots were conveyed to Related Santa Clara in December 2022.
As a result, there will be no additional fees paid to the City during NFL events.
Fiscal Year
Lease
Year
Annual Base
Stadium
Management
Fee (SCSA
Share)
Stadium
Marketing and
Booking Fee
Benchmark
Net Income
from Non-
NFL Events
1st Tier -
paid at 10%
Fee
Additional
Stadium
Marketing and
Booking Fee
10% 1st Tier
2nd Tier -
paid at 15%
Fee
Additional
Stadium
Marketing and
Booking Fee
15% 2nd Tier
Total Stadium
Management
Fee
2014/15 1 200,000$ 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 2,000,000 - 4,000,000 - 218,545 2018/19 5 225,102 5,627,544 18,591 2,060,000 - 4,120,000 - 225,102 2019/20 6 231,855 5,796,370 (2,741,014) 2,121,800 - 4,243,600 - 231,855 2020/21 7 238,810 5,970,261 (476,960) 2,185,454 - 4,370,908 - 238,810 2021/22 8 245,975 6,149,369 (288,741) 2,251,018 - 4,502,035 - 245,975 2022/23 9 253,354 6,333,850 8,809,167 2,318,548 231,855 4,637,096 23,515 508,724 2023/24 10 260,955 6,523,866 To be determined