SCSA
Santa Clara Stadium Authority
SANTA CLARA
STADIUM AUTHORITY
FINANCIAL STATUS REPORT
Quarter Ending June 30, 2023
November 14, 2023
1 Table of Contents
Introduction ................................................................................................................................... 2 NFL Events ................................................................................................................................... 3 Non-NFL Events ........................................................................................................................... 3 Discretionary Fund ........................................................................................................................ 8 Stadium Builder Licenses ............................................................................................................. 8 Santa Clara Stadium Authority Budget Status Reports .............................................................. 11 Operating Budget .................................................................................................................... 11 Debt Service Budget ............................................................................................................... 18 Capital Improvement Project Budget ....................................................................................... 22 City of Santa Clara Net General Fund Impact ............................................................................ 26 Public Safety and Administrative Cost Reimbursement .......................................................... 26 Rents and Senior and Youth Fee ............................................................................................ 27 Other Revenue Impacts .......................................................................................................... 27 Glossary ...................................................................................................................................... 28 2 Introduction
This Santa Clara Stadium Au thority (“Stadium Authorit y”) Financial Status Report provides information covering the first quarte r of the Stadium Authority’s 2023/24 fiscal year (“FY”) which ended on June 30, 2023. Comparative data from prior fiscal years is also included.
In addition to these quarte rly reports, the Stadium Auth ority 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 Commi ttee on August 30, 2023 and approved by the Stadium Authority Board (“Board”) on September 19, 2023. The financial statements 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 2023/24 budget was adopted by the Board on March 7, 2023.
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 services 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 bas ed in part on documentation submitted by Stadium Manager. Specifically, National Football League (NFL) and Non-NFL event statistics and financial information relati ng to the Stadium Manager expenses are provided by the Stadium Manager. Stadium Au thority staff has access to selected financial information submitted by the St adium 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 are received within 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 , a forensic accounting firm, to review and evaluate Non-NFL event financial informati on from prior years, including source documentation. This report was discussed with the Board at the December 1, 2020 and September 26, 2023 Stadium Aut hority Board meeting. The City Auditor’s Office is working with JS Held to determine the need 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 revision and review. Revisions may occur based on the 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. 3 NFL Events
This section provides fiscal year to date and comparative data for NFL games categorized as pre-season and regular season games. T here were no NFL games held during the first quarter of FY 2023/24. Levi’s® Stadium hosted the first 49ers pre-season game of the 2023 season on August 13, 2023, which will be included in the report for the second quarter.
Non-NFL Events
This section provides year to date and comparative data for Non-NFL events categorized as events ranging from high school and colle ge football games, international soccer matches, concerts, wedding fairs, and special events. During the current reporting period, there were a total of 41,000 tickets sold for the one ticketed Non-NFL event that was held, resulting in $164,000 Non-NFL event ticket surcharge revenue (from the $4 per ticket Non-NFL event surcharge). This is a decrease in ticket surcharge revenue of $38,000 or 19% over the same period in the prior year. The ticketed Non-NFL event in the current reporting period was a sporting event with lower attendance when compared to the large-scale concert event that took place in the same period in the prior year, resulting in the decrease in ticket surcharge revenue.
Stadium Manager reports that th ere were also 22 smaller special events held at Levi’s ®
Stadium which is three more events than in the same period in the prior fiscal year. The attendance at these events also increased from 9,996 in the prior period to 12,632 in the current year, a 26% increase. Examples of these special events include corporate events of various sizes, weddings, holiday parties, high school dances, etc.
In correlation with the Non-NFL events held during the current r eporting period, there were 4,497 cars parked at these offsite lo ts and the City earned a total of $28,000 in related offsite parking fees, which is derived from the $6.13 per parking space fee that supports public safety costs associated with the permitted offsite parking lots. The offsite parking fee invoices can take up to a few mont hs to be fully paid. The City has received $6,400 of the offsite parking fees as of the date of this report.
Total Non-NFL event public safety costs were $368,000 a decrease of $56,000 from the prior year. The decrease in cost is due to smaller scale events being held in the current year when compared to the prior year. Of these costs, $28,000 was covered by the offsite parking fee. The remaining $340,000 was invoiced to the Stadium Manager which will be reimbursed to the City. Reim bursements usually take betw een 3 to 6 months from the event date due to the timing of third-party invoices and payment from the Stadium Manager.
Statistics for FY 2023/24 events are shown in Table 1 and comparative data from all ten years of operations are shown in Table 2.
4 Table 1
Event 1 2023/24
YTD Total
No. of Scanned Attendees 36,933 - 36,933 No. of Tickets Sold 41,000 - 41,000 Non-NFL Ticket Surcharge 164,000 - 164,000 No. of Non-NFL Special Events 22 22 Non-NFL Special Event Attendees 12,632 12,632 Cars Parked at Offsite Lots 4,497 - 4,497 City Offsite Parking Fee 27,567 - 27,567 Stadium Public Safety Costs 366,913 1,145 368,058 Less: Offsite Parking Fee Credit (27,567) (27,567) Reimbursable Public Safety Costs 339,346 1,145 340,491 Amount Reimbursed - - - Levi's® Stadium
FY 2023/24 Non-NFL Event Statistics
As of June 30, 2023
2023/24 YTD
Special Events
5 Table 2
2014/15 Q1 2015/16 Q1 2016/17 Q1 2017/18 Q1 2018/19 Q1 2019/20 Q1 2020/21 Q1 2021/22 Q1 2022/23 Q1 2023/24 Q1 Total(1) Total Total Total Total Total Total Total Total Total No. of non-NFL Ticketed Events - 6 8 4 4 3 - - 1 1 No. of Tickets Sold - 284,352 351,837 90,456 115,661 57,344 - - 50,478 41,000 Non-NFL Ticket Surcharge - $ 1,137,408$ 1,407,348 $ 361,824 $ 462,444 $ 229,376 $ - $ - $ 201,912$ 164,000 $ No. of Non-NFL Special Events - 62 31 25 24 20 - - 19 22 Non-NFL Special Event Attendees - 19,345 13,709 8,438 13,683 5,737 - - 9,996 12,632 Cars Parked at Offsite Lots - 27,215 34,376 7,939 10,495 5,251 - - 5,666 4,497 City Offsite Parking Fee - $ 133,898$ 174,632 $ 41,600 $ 56,883 $ 29,563 $ - $ - $ 33,486$ 27,567 $ Cars Parked on Golf Course - 9,465 9,562 - - - - - - - City Golf Course Parking Fee - $ 47,325$ 47,810 $ - $ - $ - $ - $ - $ - $ - $ Stadium Public Safety Costs (2)
-$ 1,425,075$ 1,721,055 $ 475,003 $ 707,108 $ 337,972 $ - $ 423,650 $ 368,058 $ Golf Course Public Safety Costs - $ 73,951$ 39,905 $ - $ - $ - $ - $ - $ - $ - $ Subtotal Event Public Safety Costs - $ 1,499,026$ 1,760,960 $ 475,003 $ 707,108 $ 337,972 $ - $ - $ 423,650$ 368,058 $ Less: Offsite Parking Fee Credit - $ (133,898)$ (174,632) $ (41,600) $ (56,883) $ (29,563) $ - $ - $ (33,486)$ (27,567) $ Reimbursable Public Safety Costs - $ 1,365,128$ 1,586,328 $ 433,403 $ 650,225 $ 308,409 $ - $ - $ 390,164$ 340,491 $ Amount Reimbursed - $ 1,365,128$ 1,586,328 $ 433,403 $ 650,225 $ 308,409 $ - $ - $ 368,338$ - $ Levi's® Stadium
Historical Non-NFL Event Statistics(1)
6 Table 3 and 4 show Non-NFL net revenue by event type and event revenue and expenses by category.
For FY 2023/24, the Stadium Manager anticipates Non-NFL events to result in estimated net profits of $4.5 million, as cited in the FY 2023/24 Adopted Stadium Authority Budget.
In the first quarter of FY 2023/24, ticke ted events and non-ticketed special events contributed $178,000 and $773,000 in net profits, respectively. There was also additional interest income of $727,000 earned on Non-NFL events ca sh reserves. Offset by $291,000 of non-event specific other expenses, Stadium Manager repo rted a net profit of $1.4 million for the current reporting period.
Table 3
No. of
Events Net Revenue
Ticketed Events
Concerts 0- $
Sporting Events:
Soccer 1 177,806
Net Revenue from Ticketed Events 1 177,806 $
Net Revenue from Special Events (weddings, corporate events, etc.) 22 772,876 Other Operating Income(1) 726,948
Other Expenses(2) (291,190)
Net Revenue from Non-NFL Events (3) 23 1,386,440$
(2) Other Operating Expenses are expenses not attributable to a specific event. Examples are event selling expenses, adminstrative expenses and miscellaneous costs.
Levi's® Stadium
Net Revenue for Non-NFL Events by Event Type
As of June 30, 2023
Event Type
(1) Other Operating Income are income not attributable to a specific event. Examples are interest income and reimbursements unrelated to a specific event.
(3) Net Revenue from Non-NFL Events does not include Non-NFL Event Ticket Surcharge of $164,000. 7 Table 4
2023/24
YTD Total
REVENUE:
Special Event Revenue 2,245,684 $
Ticket Platform Fees 173,076
Suite Ticket Revenue 14,749
Parking 172,000
Food & Beverage - Ticketed Events 313,935
Food & Beverage - Special Events 222,951
Miscellaneous(2) 736,507
Total Revenue 3,878,902 $
EXPENSE:
Public Safety/Security 588,769 $
Event Staff 328,425
Parking 275,022
Catering - Special Events 1,139,071
General Event Related Expenses 829,115
Net Expense Reimbursements - Ticketed Events (1) (959,129) Miscellaneous(3) 291,190
Total Expense 2,492,463 $
Total Non-NFL Net Revenue 1,386,439 $
(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.
Levi's® Stadium
Non-NFL Event Results by Category
As of June 30, 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. 8 Discretionary Fund
The Discretionary Fund is funded by revenue equal to 50% of the Non-NFL event ticket surcharge of $4 per ticket. The one ticketed N on-NFL event is proj ected to contribute approximately $82,000 to the Di scretionary Fund in the report period. This is based on the estimated attendance provided by the Stadium Manager at the time of this report. The Stadium Authority expects to receive t he funds in November. Table 5 shows the revenues and expenses in the Discretionary Fund since FY 2014/15. The balance at the end of this reporting period was $1.8 million.
Table 5
Stadium Builder Licenses
The total principal value of currently active Stadium Build er Licenses (“SBLs”) is $549 million and, as of June 30, 2023, 95.6% of the total principa l value of all SBLs sold (i.e., $524.7 million) had been collected. Payment for the sale of SBL s 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. For those that do not pay on time, SBL service staff, working for 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 def aulted 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 63,506 currently active SBLs, or 96% of the 66,136 total sellable SBL seats. This is an increase of 291 from the total active SBLs at the end of the prior fiscal year (March 31, 2023). The main reasons for the increase are due to sale of new SBLs and customer seat relocation program offset by default buy back. The customer seat relocation program allows cust omers to trade in their SBLs in return for others in a different location as long as the total face va lue of the new seats is equal to or greater 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 2023/24 1,667,695 82,000 - 1,749,695 Discretionary Fund Reserve
(1) This amount represents the current surcharges transferred to the Discretionary Fund. 9 than the original seats.
During the current reporting peri od, 498 SBLs were sold for a total face value of $2.8 million. The customer seat relocation program resulted in an increase of $897,000 to the SBL face value, while netting 90 more SBL s. There were also 297 SBL defaulted during the quarter with a face value of $1.8 million.
Additional details regarding currently active SBLs are noted in Table 6. 10 Table 6
SBL Seats
Available
SBL Seats Sold
as of 3/31/23
New SBL
Sales
Net SBL
Relocations
SBL
Defaults Other SBL Seats
Sold SBL Value SBL Collected % SBL Principal
Collected
100 100 - - - - 100 14,082,625$ 13,570,409 $ 96.4% 942 942 - - - - 942 75,360,000$ 74,587,356 $ 99.0% 2 2 - - - - 2 80,000$ 79,591 $ 99.5% 4,945 4,581 20 27 (11) - 4,617 138,510,000$ 133,768,337 $ 96.6% 3,475 2,937 13 (11) (8) - 2,931 58,620,000$ 56,010,893 $ 95.5% 70 64 2 - (2) - 64 1,120,000$ 781,300 $ 69.8% 7 7 - - - - 7 105,000$ 104,990 $ 100.0% 2,163 2,216 10 (7) (12) - 2,207 26,484,000$ 24,932,992 $ 94.1% 7 7 - - - - 7 70,000$ 69,997 $ 100.0% 20,651 20,958 63 9 (78) - 20,952 125,712,000$ 119,854,908 $ 95.3% 14,307 14,371 208 65 (94) - 14,550 72,750,000$ 66,524,897 $ 91.4% 916 924 2 (1) - - 925 3,700,000$ 3,672,415 $ 99.3% 91 91 - - - - 91 273,000$ 274,661 $ 100.6% 40 44 - (1) - - 43 107,500$ 97,314 $ 90.5% 18,392 15,940 180 9 (92) - 16,037 32,074,000$ 30,317,693 $ 94.5% 28 31 - - - - 31 31,000$ 30,876 $ 99.6% 66,136 63,215 498 90 (297) - 63,506 549,079,125$ 524,678,629 $ 95.6% Plus: Interest on financed SBLs 64,529,305$
Total Principal & Interest 589,207,934$
(1) This table does not include $29.1 million that has been collected life-to-date from defaulted SBL holders. 17,500
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 June 30, 2023
Seat Value
141,392
80,000
40,000
30,000
20,000
15,000
12,000
6,000
11 Santa Clara Stadium Authority Budget Status Reports
Operating Budget
With 25% of the fiscal year complete, total operating revenues for the first quarter of the 2023/24 Fiscal Year were $7.2 million repr esenting 11% of the overall budget for revenues. The primary reasons that revenue is below 25% (par level through three months) is because non-NFL event revenue is recorded at the end of the fiscal year in accordance with Article 5 of the Stadium Management Agr eement, and the NFL ticket surcharge revenue is recorded in second quarter when the NFL season starts. In addition, the first SBL proceeds in the amount of $10.7 million was received in the second quarter instead of in June 2023 this year. During the current r eporting period, the Stadium Authority recognized $6.2 million in rent from StadCo, $164,000 in Non-NFL ticket surcharge, and $143,000 in sponsorship (STR) revenue.
Total Operating expenses were $5.3 million, or 20% of the annual budget. The primary reason that total expenses are below 25% is due to timing of the Ground Rent paid to the City that takes place in the second quarter. Shared Stadium Manager expenses were at 24% of the budget, or $3.3 million of t he $13.8 million budgeted amount and SBL Sales and Service expenses were 24% of the budget or $568,000. The Stadium Authority pays for all utility costs from February 1
st through July 31 st and the tenant (StadCo) pays for
utility costs from August 1st through January 31st (Tenant Season). Therefore, utility costs are 51% of the budget for the year, or $711,000. The current period covers 50% (three out of the six months) that th e Stadium Authority is responsible for utility costs. Lastly, Stadium Authority G&A costs were tracking below budgeted levels at $507,000 or 13% of the budget.
On August 31, 2022, the Stadium Authority entered into a settle ment agreement with StadCo and the Stadium M anager over disputes regar ding the operating and management expenses, shared expenses, and capital expenditures that were previously withheld. As part of the settl ement, 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 in clude Stadium Authorit y making payments to StadCo for NFL public safety costs and NFL- SBL buffet costs, wh ich are part of the parties’ pending arbitrations.
Additional details are shown in Table 7.
12 Table 7
Budget to Budget to
Adopted Amended (1) YTD Actual % Final YTD Actual %
Budget Budget Actuals Difference Received Budget Actuals Difference Received Revenue
NFL Ticket Surcharge 12,178,000 $ 12,178,000 $ - $ 12,178,000$ 0% 11,367,000 $ - $ 11,367,000$ 0% SBL Proceeds 12,589,000 12,589,000 - 12,589,000 0% 24,528,000 - 24,528,000 0% Interest 1,249,000 1,249,000 701,508 547,492 56% 1,037,000 60,600 976,400 6% Net Revenues from Non-NFL Events 4,500,000 4,500,000 - 4,500,000 0% 7,262,000 - 7,262,000 0% Naming Rights 7,602,000 7,602,000 - 7,602,000 0% 11,016,000 3,635,630 7,380,370 33% Sponsorship Revenue (STR) 475,000 475,000 143,288 331,712 30% 405,000 148,143 256,857 37% Rent 24,762,000 24,762,000 6,190,500 18,571,500 25% 24,762,000 5,640,899 19,121,101 23% Senior & Youth Program Fees 234,000 234,000 - 234,000 0% 250,000 - 250,000 0% Non-NFL Event Ticket Surcharge 1,296,000 1,296,000 164,000 1,132,000 13% 1,284,000 201,912 1,082,088 16% Other Revenue - - 2,043 (2,043) NA - - - NA Total Revenue 64,885,000 $ 64,885,000 $ 7,201,339 $ 57,683,661 $ 11% 81,911,000 $ 9,687,184 $ 72,223,816 $ 12% Budget to Budget to
Adopted Amended(1) YTD Actual % Final YTD Actual %
Budget Budget Actuals Difference Used Budget Actuals Difference Used Expenses
Shared Stadium Manager Expenses
Stadium Operations 4,550,000 $ 4,550,000 $ 1,107,096 $ 3,442,904 $ 24% 3,827,196 $ 832,211 $ 2,994,985$ 22% Engineering 2,694,000 2,694,000 655,630 2,038,370 24% 2,488,872 573,927 1,914,945 23% Guest Services 645,000 645,000 157,014 487,986 24% 586,968 125,206 461,762 21% Groundskeeping 650,000 650,000 158,270 491,730 24% 497,556 30,642 466,914 6% Security 1,564,000 1,564,000 380,730 1,183,270 24% 1,626,828 129,989 1,496,839 8% Insurance 3,327,000 3,327,000 831,793 2,495,207 25% 3,230,000 2,935,718 294,282 91% Stadium Management Fee 354,000 354,000 - 354,000 0% 253,000 - 253,000 0% Shared Stadium Mngr Exps Subtotal 13,784,000 $ 13,784,000 $ 3,290,533 $ 10,493,467 $ 24% 12,510,420 $ 4,627,693 $ 7,882,727 $ 37% Other Operating Expenses
SBL Sales and Service 2,333,000 $ 2,333,000 $ 568,174 $ 1,764,826$ 24% 2,089,000 $ 696,308 $ 1,392,692$ 33% Senior & Youth Fees (paid to City) 234,000 234,000 - 234,000 0% 250,000 - 250,000 0% Ground Rent (paid to City) 495,000 495,000 - 495,000 0% 460,000 - 460,000 0% Performance Rent (paid to City) - - - - NA - - - NA Discretionary Fund Expense 250,000 250,000 - 250,000 0% 1,300,000 - 1,300,000 0% Utilities 1,391,000 1,391,000 711,358 679,642 51% 1,444,000 962,496 481,504 67% Use of StadCo Tenant Improvements 108,000 108,000 30,384 77,616 28% 82,000 11,602 70,398 14% Stadium Authority G&A 3,572,000 3,919,900 507,048 3,412,852 13% 4,205,000 515,591 3,689,409 12% Naming Rights Commission 94,000 94,000 46,809 47,191 50% 91,000 45,445 45,555 50% Legal Contingency - - - - NA 89,011 - 89,011 0% Legal Contingency Reserve - Buffet Costs 1,077,000 1,077,000 - 1,077,000 0% 2,075,070 - 2,075,070 0% Legal Contingency Reserve - Public Safety Costs 2,002,500 2,002,500 - 2,002,500 0% 3,401,000 - 3,401,000 0% Other Expenses 734,000 734,000 184,112 549,888 25% 723,000 240,879 482,121 33% Other Operating Expenses Subtotal 12,290,500 $ 12,638,400 $ 2,047,885 $ 10,590,515 $ 16% 16,209,081 $ 2,472,321 $ 13,736,760 $ 15% Total Expenses 26,074,500 $ 26,422,400 $ 5,338,418 $ 21,083,982 $ 20% 28,719,501 $ 7,100,014 $ 21,619,487 $ 25% Transfers Out
Debt Service 25,457,000 $ 25,457,000 $ - $ 25,457,000$ 0% 46,341,580 $ - $ 46,341,580$ 0% Capital Expenditures Reserve 3,915,000 3,915,000 - 3,915,000 0% 3,801,000 - 3,801,000 0% Discretionary Fund Reserve 648,000 648,000 - 648,000 0% 642,000 - 642,000 0% Operating Reserve 600,000 600,000 - 600,000 0% 7,702,000 - 7,702,000 0% Renovation/Demolition Reserve 5,693,000 5,693,000 - 5,693,000 0% 7,031,000 - 7,031,000 0% Total Transfers Out 36,313,000 $ 36,313,000 $ - $ 36,313,000$ 0% 65,517,580 $ - $ 65,517,580$ 0% (1)Adjustments include previously approved budget amendments through October 23, 2023.
Santa Clara Stadium Authority
Operating Budget Status Report
For the Period Ending June 30, 2023 and 2022
Period Ending June 30, 2023 Period Ending June 30, 2022 13 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. A number of adjustments recommended in this report include technical actions to true up fund balances and line items based on actual FY 2022/23 performance. In addition, several adjustments are included to correct the treatment of Beginning and Ending Fund Balances, Transfers Out and Reserves to align the Stadium Authority Budget to City budgeting practices. The following budget adjustments are recommended:
1) Beginning Fund Balance / Ending Fund Ba lance Adjustment - The FY 2022/23 year- end actual was completed and fund balance adjustments totaling net $2.3 million, are necessary adjustments to the FY 2023/24 beginning and ending fund balances.
Because the adoption of budget is conducted in March, estimates are used to determine the beginning and ending fund balances, including reserve amounts.
2) Establishing Reserves in Fund Balanc e - The Operating Reserve, Renovation / Demolition Reserve, Discretionary Fund Reserve are presented separately in the Stadium Authority Budget, however, are not itemized in the Operating Fund Budget.
These line items are more appropriately classified as reserves in the beginning and ending fund balance. Technical adjustments totaling $30.7 million are recommended to establish these line items to its separate reserves in the fund balance.
3) Stadium Management Fee - The Management Performance fee owed to the Stadium Manager is outlined in the Stadium Management Agreement. The Stadium Manager receives an annual base management fee that 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 bas e management fee of $253,354, the Stadium Manager also receives a stadium market ing and booking fee based on a tiered percentage of the net Non- NFL events revenue that exceeds the Marketing and Booking Fee Benchmark. For FY2022/ 23, the Stadium Manager earned an additional $255,370 in stadium marketing and booking fee for exceeding the based tiered net Non-NFL events revenues. Below is the calculation for the additional Management Performance Fee:
14 The FY 2022/23 Non-NFL events revenues were higher than forecasted which resulted in additional Management Performance Fee owed to the Stadium Manager for FY 2022/23. A total management fee (base and performance) of $508,724 is due to the Stadium Manager. A fee of $354, 000 is budgeted in FY 2023/24 which is sufficient to cover the base fee for FY 2023/24 and only a portion of the performance fee for FY 2022/23. Therefore, a budget amendment of $162,515 is needed to reflect the increase in payment to the Stadium Manager in accordance with the Stadium Management Agreement.
4) StadCo Tenant Improv ements - Use of StadCo Tenant Improvements is projected to be higher than anticipated by $13,065 due to more Non-NFL Events being booked for FY 2023/24. The Stadium Authority is charged a fee for using StadCo designated areas as defined in the Stadium Lease Agreement for Non-NFL Events.
5) Transfers Out/Reserves - The Discretionar y Fund Reserve, Operating Reserve, and Renovation/Demolition Reserve are currently presented as a projection of funds transferred to reserve in FY 2023/24 in the Operating Fund Budget. After a review of the budgetary treatment of these reserves, and to align with the reserve practices in the City, net-zero technical adjustments totaling $7.0 million, are necessary to move these three reserves to fund balance reserves rather than Transfers Out.
6) Legal Contingency Reserves - The Legal Contingency Reserves for Buffet Costs and Public Safety Costs are currently pr esented as an expense item in the Other Operating Expenses category, these line-items are more appropriately classified as reserves until a determination is made to appropriate and spend these funds. Net- zero technical adjustments totaling $3.1 million are recommended to reallocate these line items to reserves.
Additional details are shown in Table 8.
FY 2022/23 Net Non-NFL Events Revenues 8,809,167$
Base Marketing & Booking Benchmark for FY 2022/23 6,333,850$ Excess Revenues Subject to Management Performance Fee 2,475,317$ Earnings
Tier Level
Revenues in Excess of
Management
Performance Fee
Benchmark
Additional Earnings
Percentage for
Management
Performance Fee
Excess Revenues
Subject to
Management
Performance Fee
Management
Performance Fee
Earned
1st Tier 2,318,548$ 10% 2,318,548 $ 231,855 $ 2nd Tier 4,637,096$ 15% 156,769 $ 23,515 $ 3rd Tier 4,637,097$ 20% - $ - $ Total 2,475,317$ 255,370 $
FY 2022/23 Management Performance Fee for Non-NFL events 15 Table 8
Santa Clara Stadium Authority
2023/24 Operating Budget Adjustment
Item # Line Item Source of
Funds
Use of
Funds
Explanation
1 Beginning Fund
Balance - Legal
Contingency Reserve -
Buffet Costs / Ending
Fund Balance - Legal
Contingency Reserve -
Buffet Costs
$(8,321) $(8,321) This action decreases the
Beginning and Ending Fund
Balances for Legal Contingency
Reserve - Buffet Costs from
$2,075,070 to $2,066,749 as a
result of FY 2022/23 year-end
actuals reconciliation.
1 Beginning Fund
Balance - Stadium
Funding Trust Reserve
/ Ending Fund Balance
– Stadium Funding
Trust Reserve
$(1,742,086) $(1,742,086) This action decreases the
Beginning and Ending Fund
Balance for Stadium Funding
Trust Reserve from $5,163,080
to $3,420,994 as a result of FY
2022/23 year-end actuals
reconciliation.
1 Beginning Fund
Balance – Unrestricted
/ Ending Fund Balance
– Unrestricted
$4,037,345 $4,037,345 This action increases the
Beginning and Ending Fund
Balance – Unrestricted from
$10,675,771 to $14,713,116 as a
result of FY 2022/23 year-end
actuals reconciliation.
2 Beginning Fund
Balance – Operating
Reserve / Ending Fund
Balance – Operating
Reserve
$25,348,289 $25,348,289 This action establishes the
Beginning and Ending Fund
Balance - Operating Reserve at
$25,348,289. While the reserve
was presented separately in the
Stadium Authority Budget, they
were not itemized in the
Operating Fund.
2 Beginning Fund
Balance –
Renovation/Demolition
Reserve / Ending Fund
Balance –
Renovation/Demolition
Reserve
$5,323,390 $5,323,390 This action establishes the
Beginning and Ending Fund
Balance - Renovation/Demolition
Reserve at $5,323,390. While
the reserve was presented
separately in the Stadium
Authority Budget, they were not
itemized in the Operating Fund.
2 Beginning Fund
Balance –
Discretionary Fund
Reserve
$1,667,695 $1,667,695 This action establishes the
Beginning and Ending Fund
Balance - Discretionary Fund
Reserve at $1,667,695. While
the reserve was presented
separately in the Stadium
Authority Budget, they were not
itemized in the Operating Fund.
16 Table 8 (continued)
Santa Clara Stadium Authority
2023/24 Operating Budget Adjustment
Item # Line Item Source
of Funds
Use of Funds Explanation
3 Stadium Management Fee $162,515 This action increases the Operating Budget for
Stadium Management Fee
by $162,515. due to higher
net Non-NFL Event
revenues than forecasted.
4 StadCo Tenant Improvements $13,065 This action increases the Operating Budget for StadCo
Tenant Improvements by
$13,065. The StadCo Tenant
Improvements increased due
to more events being booked
for FY 2023/24.
3 and 4 Ending Fund Balance -
Renovation/Demolition
Reserve
($175,580) This action decreases the
Renovation/Demolition
Reserve to offset actions
recommended for the
Stadium Management Fee
and StadCo Tenant
Improvements (Item# 3 and
4). Any increase in revenues
and expenses will impact the
projected amount in the
Renovation/Demolition
Reserve since this is the
current bucket being filled by
current year excess
revenues.
5 Ending Fund Balance -
Discretionary Fund Reserve
$648,000 This action reallocates the
Discretionary Fund Reserve
from Transfers Out to Ending
Fund Balance.
5 Ending Fund Balance -
Operating Reserve
$600,000 This action reallocates
Operating Reserve from
Transfers Out to Ending
Fund Balance.
17 Table 8 (continued)
Santa Clara Stadium Authority
2023/24 Operating Budget Adjustment
Item # Line Item Source of
Funds
Use of
Funds
Explanation
5 Ending Fund Balance -
Renovation/Demolition
Reserve
$5,693,000 This action reallocates the
Renovation/Demolition Reserve
in Ending Fund Balance.
5 Transfers Out $(6,941,000) This action decreases the Transfers Out to reallocate the
Discretionary Fund Reserve,
Operating Reserve and
Renovation/Demolition Reserve
to Ending Fund Balance.
6 Ending Fund Balance -
Legal Contingency
Reserve - Buffet Costs
$1,077,000 This action reallocates the Legal
Contingency - Buffet Costs in
Other Operating Expenses to
Ending Fund Balance.
6 Other Operating
Expenses – Legal
Contingency - Buffet
Costs
($1,077,000) This action reallocates the Legal
Contingency - Buffet Costs in
Other Operating Expenses to
Ending Fund Balance.
6 Ending Fund Balance -
Legal Contingency
Reserve - Public Safety
Costs
$2,002,500 This action reallocates the Legal
Contingency - Public Safety
Costs in Other Operating
Expenses to Ending Fund
Balance.
6 Other Operating
Expenses - Legal
Contingency - Public
Safety Costs
($2,002,500) This action reallocates the Legal
Contingency - Public Safety
Costs in Other Operating
Expenses to Ending Fund
Balance.
Total $34,626,312 $34,626,312
18 Debt Service Budget
The Stadium Authority’s FY 2023/24 debt service revenue budget of $2.7 million represents anticipated contribut ions from the Community Fa cilities District (CFD). The CFD levies and collects a special hotel tax on hotel rooms within the CFD. All collections from the special CFD hotel ta xes 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 the first quarter, $1.0 million was contributed by the CFD, or 40% of the annual budget. Of this amount, $632,000 was collected and used to pay down the CFD Advance.
Total Stadium Authority debt service expenses for the cu rrent reporting period were $18.6 million, or 67% of the budgeted amount. The debt se rvice expenses for the CFD Advance, and the Term A Loan were $632,000, and $18 million respectively.
As of June 30, 2023, the total outstanding amount of Stadium Authority debt had declined to $229.6 million. This is a reduction in principal of $15.6 million from the March 31, 2023 outstanding debt amount of $245.3 million.
Additional details are shown in Tables 9 and 10 and Chart 1.
19 Table 9
Budget to Budget to
Adopted YTD Actual % Final YTD Actual %
Budget Actuals Difference Received Budget Actuals Difference Received Revenue
Contribution from CFD 2,696,000 $ 1,076,948 $ 1,619,052 $ 40% 2,323,000 $ 611,227 $ 1,711,773$ 26% Total Revenues 2,696,000 $ 1,076,948 $ 1,619,052 $ 40% 2,323,000 $ 611,227 $ 1,711,773$ 26% Transfers In
Transfers In from Operating 25,457,000$ - $ 25,457,000$ 0% 46,341,580 $ - $ 46,341,580$ 0% Total Transfers In 25,457,000 $ - $ 25,457,000$ 0% 46,341,580 $ - $ 46,341,580$ 0% Budget to Budget to
Adopted YTD Actual Final YTD Actual
Budget Actuals Difference % Used Budget Actuals Difference % Used Expenses
CFD Advance 2,379,000 $ 632,326 $ 1,746,674$ 27% 2,241,000 $ 433,923 $ 1,807,077$ 19% Term A Loan 25,457,000 17,958,453 7,498,547 71% 25,494,000 17,415,690 $ 8,078,310 68% StadCo Subordinated Loan - - - NA 20,847,580 1,133,056 $ 19,714,524 5% Total Expenses 27,836,000 $ 18,590,779 $ 9,245,221 $ 67% 48,582,580 $ 18,982,669 $ 29,599,911 $ 39% Debt Service Budget Status Report
For the Period Ending June 30, 2023 and 2022
Period Ending June 30, 2022
Santa Clara Stadium Authority
Period Ending June 30, 2023
20 Table 10
Chart 1
Type of Indebtedness Interest Rates
Outstanding as of
March 31, 2023 Net Change
Outstanding as of
June 30, 2023
Stadium Funding Trust Loan:
Term A Loan 5.00% 215,415,240 $ (15,459,000) $ 199,956,240 $ StadCo CFD Advance 5.73% 29,859,497 (206,214) 29,653,284 Total $ 245,274,737 $ (15,665,214) $ 229,609,524 Period Ending June 30, 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 Jun 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 $229.6
21 Debt Service 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. The budget amendment re commended in this report include technical actions to true up fund balances based on actual FY 2022/23 performance.
1) Beginning Fund Balance / Ending Fund Ba lance Adjustment - The FY 2022/23 year- end actual was completed and fund bal ance adjustments reconciliation are necessary adjustments to the FY 2023/24 beginning and ending fund balances.
Because the adoption of budget is conducted in March, estimates are used to determine the beginning and ending fund balances, including reserve amounts.
Additional details are shown in Table 11.
Table 11
Santa Clara Stadium Authority
2023/24 Debt Service Budget Adjustment
Item # Line Item Source of
Funds
Use of
Funds
Explanation
1 Beginning Fund
Balance - Debt
Service Reserve /
Ending Fund
Balance - Debt
Service Reserve
$1,232,726 $1,232,726 This action increases the
Beginning and Ending Fund
Balance from $14,431,075 to
$15,663,801 as a result of FY
2022/23 year-end actuals
reconciliation.
Total $1,232,726 $1,232,726
22 Capital Improvement Project (CIP) Budget
As part of the Capital Expense (“CapEx”) Plan, the following projects were underway during the current reporting period:
High Voltage (PMSGT, Battery & 12KV Main Circuit Breakers) Aesthetic Improvements – Premiu m Areas/Special Event Spaces General Areas/Coating Main Deck
New Seating – Bowl Padded Se at Replacement Project
Stadium Event Signage
Women’s Locker Room
Concrete Replacements
LED Retrofit Project – Exteri or Luminaire Light Fixtures CO2 Monitoring & Sensors for Code Compliance
Main Kitchen Equipment
Cooling Towers
Variable Frequency Drive(s)
Enhance Stadium Security Coverage
Bowl Camera Upgrade/Refurbishment
Replacement of end of life IT Network equipment
A total of $2.4 million has been spent in the first quarter of FY 2023/24, which amounts to 11% of the budget. The main reason that this is below budget is due to the timing of activity for Capital Expenditure projects. There has also been little activity on warranty work which makes up 7% of the CIP Budget.
On August 31, 2022, the Stadium Authority entered into a settlement agreement with StadCo and the Stadium M anager over disputes regarding the operating and management expenses, shared expenses, and capital expenditures that were previously withheld. As part of the settlement, in r egard 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 St adium Manager also implem ented 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 12.
23 Table 12
Budget to Budget to
Adopted Amended (1) YTD Actual Final YTD Actual
Budget Budget Actuals Difference % Received Budget Actuals Difference % Received Revenue
Interest - $ - $ 42,168$ (42,168) $ NA - $ - $ - $ NA Total Revenue - $ - $ 42,168$ (42,168) $ NA - $ - $ - $ NA Transfers In
Transfers In from Operating 3,915,000 $ 3,915,000 $ - $ 3,915,000$ 0% 3,800,310 $ - $ 3,800,310$ 0% Total Transfers In 3,915,000 $ 3,915,000 $ - $ 3,915,000$ 0% 3,800,310 $ - $ 3,800,310$ 0% Budget to Budget to
Adopted Amended(1) YTD Actual Final YTD Actual
Budget Budget Actuals Difference % Used Budget Actuals Difference % Used Expenses
Construction 10,896,180 $ 10,896,180 $ 2,058,889 $ 8,837,291 $ 19% 14,034,892 $ 52,627 $ 13,982,265$ 0% Equipment 7,164,752 7,359,263 3,991 7,355,272 0% 6,602,240 97,584 6,504,656 1% Contingency & Misc 903,052 903,052 303,267 599,785 34% 962,743 - 962,743 0% Stadium Warranty Related Construction 1,528,202 1,528,202 - 1,528,202 0% 1,528,202 - 1,528,202 0% Total Expenses 20,492,186 $ 20,686,697 $ 2,366,147 $ 18,320,550 $ 11% 23,128,077 $ 150,211 $ 22,977,866$ 1% (1)Adjustments include previously approved budget amendments through October 23, 2023.
CIP Budget Status Report
For the Period Ending June 30, 2023 and 2022
Period Ending June 30, 2022
Santa Clara Stadium Authority
Period Ending June 30, 2023
24 CIP 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. The budget amendments recommended in this report include technical actions to true up fund balances based on actual FY 2022/23 performance and the purchase of equipment in the Police Department.
1) Beginning Fund Balance / Ending Fund Bala nce Adjustment - The FY 2022/23 year- end actual was completed and fund balanc e adjustments reconciliation are necessary adjustments to the FY 2023/ 24 beginning and ending fund balances.
Because the adoption of budget is conduct ed in March, estimates are used to determine the beginning and ending fund balances, including reserve amounts.
2) Fingerprinting Equipment – The Police Department’s existing fingerprinting equipment will reach its end of life in Februar y of 2024. As such, the department is requesting to purchase the replacement fingerprinting hardware and associated maintenance for Levi’s Stadium. This pur chase is needed to allow them to obtain fingerprints as a part of the booking process at Levi’s Stadium. The expected useful life for this equipment is 5 years. A budget adjustment of $10,720 is needed to include this equipment as a part of the FY 2023/24 CIP Budget.
3) Projectile Launchers – The Police Department is requesting to purchase replacement SCSA equipment that have curr ent advances in the equipment’s use, utility, fabrication and design and which is more comparable/c onsistent in its operation and features with equipment purchased by the City for city use in 2022.
This purchase is needed to allow staff to enhance its de-escalation resources and response as may be necessary at Levi’s Stadium. The expected useful life for this equipment is 20 years. A budget adjustment of $5,508 is needed to include this equipment as a part of the FY 2023/24 CIP Budget.
Additional details are shown in Table 13.
25 Table 13
Santa Clara Stadium Authority
2023/24 CIP Budget Adjustment
Item # Line Item Source of
Funds
Use of
Funds
Explanation
1 Beginning Fund
Balance / Ending
Fund Balance
$235,538 $235,538 This action increases the
Beginning and Ending Fund
Balance from $22,742,271 to
$22,977,809 as a result of FY
2022/23 year-end actuals
reconciliation.
2 Fingerprinting
Equipment
$10,720 This action increases the Public
Safety Capital Expenditure
Budget for equipment purchases
by $10,720.
3 Projectile Launchers $5,508 This action increases the Public Safety Capital Expenditure
Budget for equipment purchases
by $5,508.
2, 3 Ending Fund Balance $(16,228) This action decreases the Ending Fund Balance to offset
action taken for the
Fingerprinting Equipment and
Projectile Launchers.
Total $235,538 $235,538
26 City of Santa Clara Net General Fund Impact
During the current reporting per iod there was a total of $51, 163 that was contributed to the General Fund as shown in Table 14. This is due to the timing of when the ground rent is paid and the performance rent is calculat ed. Additionally, the Senior and Youth Fee and the Tasman Lot Parking Fee are both related to NFL games of which there were none in the first quarter. This sect ion 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 the Stadium Manager. Reimbursement is monitored and included in this report. A total of $368,000 in public safety costs were incurred in support of Non-NFL events that were held at Levi’s ® Stadium in the current reporting period. These reimbursements came from a combination of payments from the Stadium Manager and the offsite parking fees that were collected. Th e City has not received the reimbursements as of the date of this report.
Public safety costs for NFL events continue to be above the annual public safety cap.
Pursuant to the Amended and Restated Lease, the 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 th e 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 pai d outstanding NFL public safety costs for NFL events under protest, pending the public safety cost arbitration.
In addition to public safety costs, administrat ive costs are also tracked and billed to the Stadium Authority. These in clude the cost of providi ng overall stadium management, financial, human resource, legal, and other services to the Stadium Authority. In the first quarter of FY 2023/24, a total of $507,000 of administrative costs were incurred by the General Fund, which have been reimbursed to the City.
Ground Rent - $
Performance Rent -
Senior and Youth Fee -
Tasman Lots Parking Fee -
Sales Tax 51,163
51,163$
City of Santa Clara
Net General Fund Impact
For Stadium Authority
Total Net General Fund Impact
Period Ending June 30, 2023
27 Rents and Senior and Youth Fee
As noted above, the City’s General Fund did not collect any rents or Senior and Youth fees in the current reporting period. 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 quarter of sales tax collections from Levi’s® Stadium transactions generated $51,000 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 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.
28 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 Stad ium Authority. All promotors or sponsors of ti cketed Non-NFL events are required to collect a Non-NFL event ticket surcharge of $4 per ticket on behalf of the Stadium Author ity. One-half of these proceeds are used to cover Stadium Au thority 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 Author ity will determine if provision has been made for replacement and improvement of capital improvements contemplated under the public safety plan. If not, t hen funds will be reserved in the discretionary fund for such purposes. If adequate provision has been made fo r these items and the balance of the discretionary fund still exceeds $1 million, t hen up to half of the amount over $1 million can be transferred to the G eneral Fund, in which event an equal amount will also be transferred from the discreti onary fund to the Stadium Aut hority 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 2.
29 Chart 2
Net Non-NFL Event Revenue – Net Non-NFL event revenue is remitted by Stadium Manager 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.
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.
Leas e Year Fis cal Year
Annual Fixed
Ground Rent
Cumulative
Total
1 2014/15 180,000 $ 180,000 $
2 2015/16 215,000 $ 395,000 $
3 2016/17 250,000 $ 645,000 $
4 2017/18 285,000 $ 930,000 $
5 2018/19 320,000 $ 1,250,000 $
6 2019/20 355,000 $ 1,605,000 $
7 2020/21 390,000 $ 1,995,000 $
8 2021/22 425,000 $ 2,420,000 $
9 2022/23 460,000 $ 2,880,000 $
10 2023/24 495,000 $ 3,375,000 $
11 2024/25 1,000,000 $ 4,375,000 $
12 2025/26 1,000,000 $ 5,375,000 $
13 2026/27 1,000,000 $ 6,375,000 $
14 2027/28 1,000,000 $ 7,375,000 $
15 2028/29 1,000,000 $ 8,375,000 $
16 2029/30 1,100,000 $ 9,475,000 $
17 2030/31 1,100,000 $ 10,575,000 $
18 2031/32 1,100,000 $ 11,675,000 $
19 2032/33 1,100,000 $ 12,775,000 $
20 2033/34 1,100,000 $ 13,875,000 $
21 2034/35 1,200,000 $ 15,075,000 $
22 2035/36 1,200,000 $ 16,275,000 $
23 2036/37 1,200,000 $ 17,475,000 $
24 2037/38 1,200,000 $ 18,675,000 $
25 2038/39 1,200,000 $ 19,875,000 $
26 2039/40 1,300,000 $ 21,175,000 $
27 2040/41 1,300,000 $ 22,475,000 $
28 2041/42 1,300,000 $ 23,775,000 $
29 2042/43 1,300,000 $ 25,075,000 $
30 2043/44 1,300,000 $ 26,375,000 $
31 2044/45 1,400,000 $ 27,775,000 $
32 2045/46 1,400,000 $ 29,175,000 $
33 2046/47 1,400,000 $ 30,575,000 $
34 2047/48 1,400,000 $ 31,975,000 $
35 2048/49 1,400,000 $ 33,375,000 $
36 2049/50 1,500,000 $ 34,875,000 $
37 2050/51 1,500,000 $ 36,375,000 $
38 2051/52 1,500,000 $ 37,875,000 $
39 2052/53 1,500,000 $ 39,375,000 $
40 2053/54 1,500,000 $ 40,875,000 $
30 Non-NFL Event Ticket Surcharge – The Stadium Lease Agre ement 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 as ide one-half of the Non-NFL event ticket surcharge for stadium operating and maintenanc e 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 associat ed with these permitted offsite parking lots.
Therefore, when invoicing for NFL or Non-NF L 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 Cit y’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 th e 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 the public safety plan. Services are provided through a combination of City staff, contra cts 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.
Senior and Youth Program Fees – The Amended and Restated Stadium Lease Agreement requires that StadC o collect a Senior and Yout h Program Fee of $0.35 per NFL ticket sold on behalf of t he Stadium Authority. 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.
31 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 Stadi um Authority since the Stadium Manager manages the st adium year-round for both entities. In addition to the base management fee, the St adium Manager also receiv es 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 t he marketing and booking fee benchmark. The marketing and booking fee benchmark was $5 m illion in the first lease year and also increases by 3% annually as detailed in the table below. The annual stadium management fee for each of the first ten lease years are noted in the chart 3 below.
Chart 3
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