SCSA
Santa Clara Stadium Authority
SANTA CLARA
STADIUM AUTHORITY
FINANCIAL STATUS REPORT
Quarter Ending September 30, 2023
February 6, 2024
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LEVI ' S ® STADIUM
1 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 .............................................................................................................. 19 Capital Improvement Project Budget ..................................................................................... 22 City of Santa Clara Net General Fund Impact ........................................................................... 25 Public Safety and Administrative Cost Reimbursement ......................................................... 25 Rents and Senior and Youth Fee ........................................................................................... 26 Other Revenue Impacts ......................................................................................................... 26 Glossary.................................................................................................................................... 27 2 Introduction
This Santa Clara Stadium Authority (“Stadium Authority”) Financial Status Report provides information covering the second quarter of the Stadium Authority’s 202 3/24 fiscal year (“FY”) which ended on September 30, 2023. Comparative data from prior fiscal years is also included.
In addition to these quarterly reports, the Stadium Author ity 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, 202 3 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 prepares a detailed budget 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 based in part on documentation submitted by 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 select 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 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 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 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 three NFL games (two pre- season games and one regular season game) at Levi’s® Stadium through quarter ending September 30, 2023. There was a total of 1 98,037 tickets sold to these NFL games, an average of 66,012 per game. This is down by 2,241 or 3% when compared to the same period in the prior fiscal year. The ticket sales resulted in $2.7 million in NFL ticket surcharge revenue (10% of ticket sales) to the Stadium Authority. The average NFL ticket surcharge revenue was $898,000 per game in the current year which is up by $128,000 or 17% from the same period in the prior fiscal year. A total of $ 69,000 of Senior and Youth Program Fees, which is based on $0.35 per NFL ticket sold, were collected through the end of the second quarter of the fiscal year. These fees were transferred to the City’s General Fund in support of such programs.
A total of 17,847 cars were parked in the permitted offsite parking lots generating $115,000 in offsite parking fees. The overall number of cars parked in the permitted offsite lots increased by an average of 97 cars per game or 2% when compared to the prior fiscal year.
There was an estimated $1.3 million of NFL event public safety costs in the current reporting period which is an average of $443,000 per game. This is an increase from the prior year average (through September 30, 2022) of $435,000. Of the $ 1.3 million NFL event public safety costs, $1.2 million or 87% are direct City costs and $175,000 or 13% are outside agency costs. $115,000 of the total NFL event public safety costs are covered by the offs ite parking fees that were collected and the remaining are invoiced to the Stadium Manager. Approximately $40,000 of FY 2022/23 public safety costs remains outstanding due to true-up billings invoiced to the Stadium Manager during April and May of 2023. Outside agencies assisting the City with public safety were experiencing staffing shortages and delays in invoicing. As a result, NFL public safety cost invoices were provided to the Stadium Manager in December 2023 and have not been reimbursed as of the current reporting period. The Stadium Authority expects the Stadium Manager to complete its review of the invoices and issue the payments before the end of the fiscal year.
Statistics for the NFL games held at Levi’s
® Stadium in the first two quarters of the
2023/24 fiscal year are shown in Table 1 and comparative data from all ten years of operations can be found in Table 2.
4 Table 1
Game 1 vs
Broncos
Game 2 vs
Chargers
Game 3 vs
Giants 2023/24
08/19/23 08/25/23 09/21/23 YTD Total
No. of Tickets Sold 65,819 62,492 69,726 198,037 NFL Ticket Surcharge (2) 745,864$ 742,481$ 1,206,732$ 2,695,077$ Senior/Youth Program Fees 23,037$ 21,872$ 24,404$ 69,313$ Cars Parked at Offsite Lots 5,901 6,238 5,708 17,847 City Offsite Parking Fee 38,002$ 40,173$ 36,760$ 114,935$ Stadium Public Safety Costs (1) 433,660$ 456,197$ 439,350$ 1,329,208$ Less: Offsite Parking Fee Credit (38,002)$ (40,173)$ (36,760)$ (114,935)$ Reimbursable Stadium Public Safety Cost 395,658$ 416,025$ 402,590$ 1,214,273$ Amount Reimbursed -$ -$ -$ -$ (1) Includes estimated stadium public safety costs from outside agencies.
Levi's® Stadium
2022/23 NFL Event Statistics
As of September 30, 2023
(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.
5 Table 2
2014/15 Q2 2015/16 Q2 2016/17 Q2 2017/18 Q2 2018/19 Q2 2019/20 Q2 2020/21 Q2 2021/22 Q2 2022/23 Q2 2023/24 Q2 Total Total Total Total Total Total Total Total Total Total No. of NFL Events 4 3 3 4 3 3 - 3 2 3 No. of Tickets Sold 271,503 198,634 188,705 249,408 190,840 184,769 - 199,451 136,506 198,037 NFL Ticket Surcharge 2,911,416$ 1,851,550$ 2,343,474$ 2,544,721$ 1,732,335$ 2,416,387$ -$ 2,651,401$ 1,540,422$ 2,695,077$ Senior/Youth Program Fees 95,026$ 69,522$ 66,047$ 87,293$ 66,794$ 64,669$ -$ 69,807$ 47,777$ 69,313$ Cars Parked at Offsite Lots 37,884 16,986 18,295 21,442 15,030 16,578 - 21,678 11,703 17,847 City Offsite Parking Fee 186,389$ 86,289$ 95,866$ 116,216$ 84,619$ 96,981$ -$ 128,117$ 71,739$ 114,935$ Cars Parked on Tasman Lots 1,737 1,967 1,689 2,357 1,244 1,485 - 1,180 - - Cars Parked on Golf Course 11,378 7,353 - - - - - - - - City Tasman Lot and Golf Course Parking Fee 65,575$ 46,600$ 8,445$ 11,785$ 6,220$ 7,425$ -$ 5,900$ -$ -$ Stadium Public Safety Costs (1) 914,005$ 673,723$ 740,565$ 975,574$ 764,421$ 1,157,636$ -$ 1,855,191$ 870,925$ 1,329,208$ Golf Course Public Safety Costs 111,690$ 25,242$ -$ -$ -$ -$ -$ -$ -$ -$ Subtotal Event Public Safety Costs 1,025,695$ 698,965$ 740,565$ 975,574$ 764,421$ 1,157,636$ -$ 1,855,191$ 870,925$ 1,329,208$ Less: Offsite Parking Fee Credit (186,389)$ (86,289)$ (95,866)$ (116,216)$ (84,619)$ (96,981)$ -$ (128,117)$ (71,739)$ (114,935)$ Reimbursable Stadium Public Safety Costs 839,306$ 612,676$ 644,700$ 859,359$ 679,802$ 1,060,654$ -$ 1,727,074$ 799,185$ 1,214,273$ Reimbursed by StadCo 839,306$ 612,676$ 644,700$ 859,359$ 679,802$ 1,060,654$ -$ 1,727,074$ 759,323$ -$ Reimbursed by SCSA -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total Amount Reimbursed 839,306$ 612,676$ 644,700$ 859,359$ 679,802$ 1,060,654$ -$ 1,727,074$ 759,323$ -$ (1) Includes estimated stadium public safety costs from outside agencies.
Levi's® Stadium
Historical NFL Event Statistics
6 Non-NFL Events
This section provides year to date and comparative data for Non-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 397,856 tickets sold for the eight ticketed Non-NFL events that were held, resulting in $1.6 million Non-NFL event ticket surcharge revenue (from the $4 per ticket Non-NFL event surcharge). This is a n increase in ticket surcharge revenue of $637,000 or 67% over the same period in the prior year. T here were three additional ticketed Non-NFL events when compared to the same period in the prior year and the ticketed Non-NFL events in the current reporting period were larger-scale events resulting in the increase in the ticket surcharge revenue.
Stadium Manager reports that there w ere also 25 smaller special events held at Levi’s ® Stadium which is six events less than the same period of the prior fiscal year. The attendance at these events also decreased from 14,775 in the prior period to 14,546 in the current year, a 2% decrease. 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 reporting period, there were 38,716 cars parked at these offsite lots and the City earned a total of $ 248,000 in related offsite parking fees , which is derived from the $6.13 per parking space fee for events taking place prior to July 2023 and $6.44 per parking space for all events thereafter. The revenues earned from this offsite parking fee supports public safety costs for Non-NFL events. The offsite parking fee invoices can take up to a few months to be fully paid. The City has received $201,000 of the offsite parking fees as of the date of this report.
Total Non-NFL event public safety costs were $3.2 million an increase of $1.2 million from the prior year. As noted previously, this increase in cost is due to more large-scale events being held in the current year when compared to the prior year. Of these costs, $248,000 was covered by the offsite parking fee. The remaining $3 million was invoiced to the Stadium Manager which will be reimbursed to the City. Reimbursements usually take between 3 to 6 months from the event date due to the timing of third- party invoices and payment from the Stadium Manager. $80,000 in public safety costs remains outstanding from prior year due to true -up billings i nvoiced to the Stadium Manager during April and May of 2023. Outside agencies assisting the City with public safety were experiencing staffing shortages and delays in invoicing. As a result, Non-NFL public safety cost invoices were provided to the Stadium Manager in December 2023 and is estimated to be reimbursed to the City in February.
Statistics for FY 2023/24 events are shown in Table 3 and comparative data from all ten years of operations are shown in Table 4.
7 Table 3
Earthquakes vs
LAFC Soccer
Gold Cup
Tournament
F.C. Barcelona
vs. Juventus
F.C.
(Canceled)
Taylor Swift
Day 1
Taylor Swift
Day 2 Karol G Beyonce Ed Sheeran
2023/24 YTD
05/06/23 07/02/23 07/22/23 07/28/23 07/29/23 08/14/23 08/30/23 09/16/23 Total No. of Scanned Attendees 36,933 56,808 - 61,925 61,286 42,048 49,296 73,167 - 381,463 No. of Tickets Sold 41,739 62,846 - 62,104 61,692 43,691 50,742 75,042 - 397,856 Non-NFL Ticket Surcharge 166,956$ 251,384$ -$ 248,416$ 246,768$ 174,764$ 202,968$ 300,168$ -$ 1,591,424$ No. of Non-NFL Special Events 25 25 Non-NFL Special Event Attendees 14,546 14,546 Cars Parked at Offsite Lots 4,497 7,082 - 5,127 6,053 3,392 4,474 8,091 - 38,716 City Offsite Parking Fee 27,567$ 45,608$ -$ 33,018$ 38,981$ 21,844$ 28,813$ 52,106$ -$ 247,937$ Stadium Public Safety Costs 366,913$ 557,393$ 150,765$ 544,464$ 498,825$ 382,224$ 343,976$ 359,694$ 1,145$ 3,205,398$ Less: Offsite Parking Fee Credit (27,567)$ (45,608)$ -$ (33,018)$ (38,981)$ (21,844)$ (28,813)$ (52,106)$ (247,937)$ Reimbursable Public Safety Costs 339,346$ 511,785$ 150,765$ 511,446$ 459,843$ 360,380$ 315,163$ 307,588$ 1,145$ 2,957,461$ Amount Reimbursed - - - - - - - - - - 2023/24 YTD
Special Events
Levi's® Stadium
FY 2023/24 Non-NFL Event Statistics
As of September 30, 2023
8 Table 4
2014/15 Q2 2015/16 Q2 2016/17 Q2 2017/18 Q2 2018/19 Q2 2019/20 Q2 2020/21 Q2 2021/22 Q2 2022/23 Q2 2023/24 Q2 Total(1) Total Total Total Total Total Total Total Total Total No. of non-NFL Ticketed Events 2 13 14 7 7 6 - - 5 8 No. of Tickets Sold 106,699 542,390 518,542 210,157 231,849 125,587 - - 237,386 397,856 Non-NFL Ticket Surcharge 426,796$ 2,130,628$ 2,074,168$ 840,628$ 927,396$ 502,348$ -$ -$ 954,848$ 1,591,424$ No. of Non-NFL Special Events 43 100 53 42 41 28 - - 31 25 Non-NFL Special Event Attendees 12,521 73,196 17,959 23,726 15,943 7,752 - - 14,775 14,546 Cars Parked at Offsite Lots 10,748 51,669 55,731 19,466 22,338 13,130 - - 20,388 38,716 City Offsite Parking Fee 52,880$ 258,252$ 286,531$ 104,077$ 123,559$ 75,164$ -$ -$ 123,732$ 247,937$ Cars Parked on Golf Course 5,413 19,743 9,562 - - - - - - - City Golf Course Parking Fee 27,065$ 98,715$ 47,810$ -$ -$ -$ -$ -$ -$ -$ Stadium Public Safety Costs (2)
444,151$ 2,624,988$ 2,469,148$ 1,035,289$ 1,378,966$ 1,004,000$ -$ -$ $2,014,823 3,205,398$ Golf Course Public Safety Costs 55,701$ 113,440$ 39,905$ -$ -$ -$ -$ -$ -$ -$ Subtotal Event Public Safety Costs 499,852$ 2,738,429$ 2,509,053$ 1,035,289$ 1,378,966$ 1,004,000$ -$ -$ 2,014,823$ 3,205,398$ Less: Offsite Parking Fee Credit (52,880)$ (258,252)$ (286,531)$ (104,077)$ (123,559)$ (75,164)$ -$ -$ (143,133)$ (247,937)$ Reimbursable Public Safety Costs 446,972$ 2,480,177$ 2,222,522$ 931,212$ 1,255,407$ 928,836$ -$ -$ 1,871,690$ 2,957,461$ Amount Reimbursed 446,972$ 2,480,177$ 2,222,522$ 931,212$ 1,255,407$ 928,836$ -$ -$ 1,792,932$ -$ (1) The first event at Levi's Stadium was in August 2014 (the second quarter of the 2014/15 Fiscal Year). (2) Additional Public Safety Costs are included for Events taking place in FY 2022/23 subsequent to when the FY 2022/23 report was published.
Levi's® Stadium
Historical Non-NFL Event Statistics(1)
9 Table 5 summarizes ticketed Non-NFL revenues and expenditures by event. There were 8 ticketed Non-NFL events held in FY 2023/24 and generated an average net revenue of $572,000 per event. The inclusion of this information is to provide a greater level of transparency and provide the overall financial results of the Non-NFL events.
Table 5
In Millions $
Ticketed Event Revenue Expense Net
Concert 1 2.6$ 1.1$ 1.5$
Concert 2 2.6 1.9 0.7
Concert 3 2.5 2.0 0.5
Concert 4 2.4 1.7 0.7
Concert 5 1.8 0.9 0.9
Sporting Event 1 1.7 1.1 0.6 Sporting Event 2 0.9 0.5 0.4 Sporting Event 3 - 0.7 (0.7) Total Ticketed Non-NFL Net Revenue to Date 14.4$ 9.8$ 4.6$ Levi's® Stadium
Ticketed Non-NFL Events Revenue and Expenditure Summary As of September 30, 2023
10 Table 6 and 7 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 revenues of $4.5 million, as cited in the FY 202 3/24 Adopted Stadium Authority Budget. In the second quarter of FY 2023/24, ticketed events and non-ticketed special events contributed $4.6 million and $903,000 in net revenues, respectively. There was also additional interest income of $1.3 million earned on Non- NFL events cash reserves. Offset by $ 682,000 of non -event specific other expenses, Stadium Manager reported a net revenue of $6.1 million for the current reporting period.
Table 6
EVENT TYPE
No. of
Events Net Revenue
No. of
Events Net Revenue
No. of
Events Net Revenue
No. of
Events Net Revenue
No. of
Events Net Revenue
Ticketed Events
Concerts 1 871,777$ 4 2,986,483$ 5 4,267,153$ Sporting events:
Football (non-NFL) 1 30,938 - - Soccer 2 83,456 1 231,987 3 305,067 Miscellaneous events 2 (404,883)
Subtotal Ticketed Events 6 581,288$ 5 3,218,470$ 8 4,572,220$ Subtotal Special Events (weddings, corporate events, etc.) 28 362,074$ 31 1,350,957$ 25 903,221$ Subtotal Other Operating Income 1,271,700$
Subtotal Other Operating Expenses (537,543)$ (681,705)$ Total Non-NFL Net Revenue 34 943,362$ 0 -$ 0 -$ 36 4,031,884$ 33 6,065,436$ by Event Type
Historical Year-to-Date through September 30
2021/22 2022/23 2023/242020/212019/20
Levi's Stadium
Net Revenue for Non-NFL Events
11 Table 7
2023/24
YTD Total
REVENUE:
Special Event Revenue 2,817,049$
Ticket Platform Fees 6,287,564
Suite Ticket Revenue 1,408,560
P
arking 2,028,556
Food & Beverage - Ticketed Events 3,413,162
Food & Beverage - Special Events 311,757
Miscellaneous(1) 2,555,011
Total Revenue 18,821,659$
EXPENSE:
Public Safety/Security 5,657,387$
Event Staff 5,014,925
Parking 2,115,246
C
atering - Special Events 1,607,780
General Event Related Expenses 5,615,452
Expense Reimbursement from Event Licensee(2) (7,936,273) Miscellaneous(3) 681,706
Total Expense 12,756,223$
Total Non-NFL Net Revenue 6,065,436$
(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 September 30, 2023
(2) Expenses incurred for Non-NFL events can either be the responsibility of the SCSA or the Event Licensee depending on the nature of the expense. This figure represents the total expenses incurred by the SCSA that were the responsibilty of the Event Licensee for which the SCSA has been reimbursed, net of the Event Licensee's share of ancillary revenues. (1) Includes venue rental fees, net merchandise sales, interest income, and other revenues. 12 Discretionary Fund
The Discretionary Fund is funded by revenue equal to 50% of the Non- NFL event ticket surcharge of $4 per ticket. The eight ticketed Non-NFL events are projected to contribute approximately $794,000 to the Discretionary Fund in the report ing period. This is based on the estimated attendance provided by the Stadium Manager. At the time of this report, $544,000 has been collected for the current fiscal year . Table 8 shows the revenues and expenses in the Discretionary Fund since FY 2014/15. The balance at the end of this reporting period was $2.5 million.
Table 8
Stadium Builder Licenses
The total principal value of currently active Stadium Builder Licenses (“SBLs”) is $549.3 million and, as of September 30, 2023, 95.4% of the total principal value of all SBLs sold (i.e., $524.3 million) had been collected. Payment for the sale of SBLs are financed over 10 years.
SBL holders that finance their purchase pay an annual interest rate of 8.5% and payments are due by March 1 st each year. The majority of SBL holders make their payment s on time. For those that do not pay on time, SBL service staff, working for Stadium Manager on the Stadium Authority’s behalf, contact the SBL holders and attempt to collect the full amounts owed. Ultimately, a SBL can be defaulted for non- payment. Once a SBL is defaulted, the SBL holder in default loses their right to buy season tickets as well as their priority rights to tickets to Non- NFL events, and forfeits any money they had invested in the SBL. Defaulted SBLs are then available for resale.
There is a total of 63,655 currently active SBLs, or 96.2% of the 66,136 total sellable SBL seats. This is an increase of 440 from the total active SBLs at the end of the prior fiscal year (March 31, 2023). The main reasons for the increase are due to sale of new SBLs and customer seat relocation program offset by default buy back. The customer seat relocation program allows customers to trade in their SBLs in return for others in a
Fiscal Year
Beginning
Balance Revenue Expenses Ending Balance
2014/15 -$ 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 1,300,051 1,667,695 2023/24 1,667,695 793,564 (1)
- 2,461,259
Discretionary Fund Reserve
(1) This amount includes accruals booked to the Discretionary Fund based on estimated attendance provided by the Stadium Manager.
13 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, 854 SBLs were sold for a total face value of $4.7 million. The customer seat relocation program resulted in an increase of $757,000 to the SBL face value, while netting 90 more SBLs. There were also 504 SBL defaulted during the quarter with a face value of $3.3 million.
Additional details regarding currently active SBLs are noted in Table 9. 14 Table 9
SBL Seats
Available
SBL Seats Sold
as of 3/31/23
New SBL
Sales
Net SBL
Relocations
SBL
Defaults Other SBL Seats
Sold SBL Value SBL Collected % SBL Principal
Collected
100 100 - - - - 100 14,082,625$ 13,765,618$ 97.7% 942 942 - - - - 942 75,360,000$ 74,651,644$ 99.1% 2 2 - - - - 2 80,000$ 79,591$ 99.5% 4,945 4,581 24 21 (20) - 4,606 138,180,000$ 133,663,805$ 96.7% 3,475 2,937 30 (9) (22) - 2,936 58,720,000$ 55,936,208$ 95.3% 70 64 2 - (2) - 64 1,120,000$ 790,149$ 70.5% 7 7 - - - - 7 105,000$ 105,000$ 100.0% 2,163 2,216 18 (6) (25) - 2,203 26,436,000$ 24,877,535$ 94.1% 7 7 - - - - 7 70,000$ 69,913$ 99.9% 20,651 20,958 152 6 (136) - 20,980 125,880,000$ 119,606,389$ 95.0% 14,307 14,371 313 63 (167) - 14,580 72,900,000$ 66,313,447$ 91.0% 916 924 2 (1) - - 925 3,700,000$ 3,672,306$ 99.3% 91 91 - - - - 91 273,000$ 270,494$ 99.1% 40 44 - (1) (1) - 42 105,000$ 104,973$ 100.0% 18,392 15,940 313 17 (131) - 16,139 32,278,000$ 30, 341,414$ 94.0% 28 31 - - - - 31 31,000$ 30,867$ 99.6% 66,136 63, 215 854 90 (504) - 63,655 549,320,625$ 524,279,353$ 95.4% Plus: Interest on financed SBLs 65,326,155$
Total Principal & Interest 589,605,508$
(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 September 30, 2023
Seat Value
141,392
80,000
40,000
30,000
20,000
15,000
12,000
6,000
15 Santa Clara Stadium Authority Budget Status Reports
Operating Budget
With 50% of the fiscal year complete, total operating revenues for the second quarter of the 2023/24 Fiscal Year were $30.9 million representing 48% of the overall budget for revenues. During the current reporting period, the Stadium Authority collected $1 0.7 million in SBL proceeds or 85% of what was budgeted. All SBL proceeds are to be transferred to the debt service fund per applicable loan agreements. Stadium Authority also recognized $13.8 million in rent from StadCo , $ 1.6 million in Non-NFL ticket surcharge, and $225,000 in sponsorship (STR) revenue all of which are expected to meet budget this fiscal year.
Total Operating expenses were $ 11.7 million, or 50% of the annual budget. Shared Stadium Manager expenses were at 48% of the budget, or $6.8 million of the $13.9 million budgeted amount and SBL Sales and Service expenses were 68% of the budget or $1.6 million. The Stadium Authority pays for all utility costs from February 1st through July 31st and the tenant (StadCo) pays for utility costs from August 1st through January 31st (Tenant Season). Therefore, utility costs are 67 % of the budget for the year, or $927 ,000. The current period covers 67% ( four out of the six months) that the Stadium Authority is responsible for utility costs. Lastly, Stadium Authority G&A costs were tracking below budgeted levels at $1.3 million or 34% of the budget.
On August 31, 2022, the Stadium Authority entered into a settlement agreement with StadCo and the Stadium Manager over disputes regarding the operating and management expenses, shared expenses, and capital expenditures that were previously withheld. As part of the settlement, the Stadium Authority agreed to timely pay for the budgeted expense for its share of shared stadium manager expenses and other expenses for the current fiscal year, with Stadium Authority reserving all rights to confirm or dispute charges paid. This settlement does not include Stadium Authority making payments to StadCo for NFL public safety costs and NFL- SBL buffet costs, which are part of the parties’ pending arbitrations.
Additional details are shown in Table 10.
16 Table 10
Budget to Budget to
Amended(1)
YTD Actual % Final YTD Actual %
Budget Actuals Difference Received Budget Actuals Difference Received Revenue
NFL Ticket Surcharge 12,178,000$ 2,695,077$ 9,482,923$ 22% 11,367,000$ 1,540,422$ 9,826,578$ 14% SBL Proceeds 12,589,000 10,708,985 1,880,015 85% 24,528,000 12,382,812 12,145,188 50% Interest 1,249,000 1,827,112 (578,112) 146% 1,037,000 327,937 709,063 32% Net Revenues from Non-NFL Events 4,500,000 - 4,500,000 0% 7,262,000 - 7,262,000 0% Naming Rights 7,602,000 - 7,602,000 0% 11,016,000 7,271,260 3,744,740 66% Sponsorship Revenue (STR) 475,000 224,538 250,462 47% 405,000 229,393 175,607 57% Rent 24,762,000 13,756,000 11,006,000 56% 24,762,000 13,205,400 11,556,600 53% Senior & Youth Program Fees 234,000 69,313 164,687 30% 250,000 47,777 202,223 19% Non-NFL Event Ticket Surcharge 1,296,000 1,587,128 (291,128) 122% 1,284,000 702,880 581,120 55% Other Revenue - 2,043 (2,043) NA - - - NA Total Revenue 64,885,000$ 30,870,196$ 34,014,804$ 48% 81,911,000$ 35,707,881$ 46,203,119$ 44% Budget to Budget to
Amended(1) YTD Actual % Final YTD Actual %
Budget Actuals Difference Used Budget Actuals Difference Used Expenses
Shared Stadium Manager Expenses
Stadium Operations 4,550,000$ 2,252,106$ 2,297,894$ 49% 3,827,196$ 1,913,598$ 1,913,598$ 50% Engineering 2,694,000 1,333,837 1,360,163 50% 2,488,872 1,244,436 1,244,436 50% Guest Services 645,000 319,825 325,175 50% 586,968 293,484 293,484 50% Groundskeeping 650,000 323,607 326,393 50% 497,556 248,778 248,778 50% Security 1,564,000 777,558 786,442 50% 1,626,828 813,414 813,414 50% Insurance 3,327,000 1,663,586 1,663,414 50% 3,230,000 1,615,132 1,614,868 50% Stadium Management Fee 516,515 92,855 423,660 18% 253,000 - 253,000 0% Shared Stadium Mngr Exps Subtotal 13,946,515$ 6,763,374$ 7,183,141$ 48% 12,510,420$ 6,128,842$ 6,381,578$ 49% Other Operating Expenses
SBL Sales and Service 2,333,000$ 1,597,358$ 735,642$ 68% 2,089,000$ 1,044,462$ 1,044,538$ 50% Senior & Youth Fees (paid to City) 234,000 69,313 164,687 30% 250,000 47,777 202,223 19% Ground Rent (paid to City) 495,000 495,000 - 100% 460,000 460,000 - 100% Performance Rent (paid to City) - - - NA - - - NA Discretionary Fund Expense 250,000 - 250,000 0% 1,300,000 - 1,300,000 0% Utilities 1,391,000 927,030 463,970 67% 1,444,000 962,496 481,504 67% Use of StadCo Tenant Improvements 121,065 111,737 9,328 92% 82,000 25,790 56,210 31% Stadium Authority G&A 3,919,900 1,345,141 2,574,759 34% 4,205,000 1,151,005 3,053,995 27% Naming Rights Commission 94,000 46,809 47,191 50% 91,000 45,445 45,555 50% Legal Contingency - - - NA 89,011 - 89,011 0% Other Expenses 734,000 366,794 367,206 50% 723,000 361,319 361,681 50% O
ther Operating Expenses Subtotal 9,571,965$ 4,959,182$ 4,612,783$ 52% 10,733,011$ 4,098,295$ 6,634,716$ 38% Total Expenses 23,518,480$ 11,722,556$ 11,795,924$ 50% 23,243,431$ 10,227,137$ 13,016,294$ 44% Transfers Out
Debt Service 25,457,000$ 10,678,707$ 14,778,293$ 42% 46,341,580$ 12,337,956$ 34,003,624$ 27% Capital Expenditures Reserve 3,915,000 - 3,915,000 0% 3,801,000 - 3,801,000 0% Discretionary Fund Reserve - - - NA 642,000 - 642,000 0% Operating Reserve - - - NA 7,702,000 - 7,702,000 0% Renovation/Demolition Reserve - - - NA 7,031,000 - 7,031,000 0% Total Transfers Out 29,372,000$ 10,678,707$ 18,693,293$ 36% 65,517,580$ 12,337,956$ 53,179,624$ 19% Changes in Reserves
Discretionary Fund Reserve 648,000$ -$ 648,000$ 0% -$ 351,440$ (351,440)$ NA Legal Contingency - - - NA - - - NA Legal Contingency Reserve - Buffet Costs 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 0% 3,401,000 - 3,401,000 0% Operating Reserve 600,000 - 600,000 0% - - - NA Renovation/Demolition Reserve 5,517,420 - 5,517,420 0% - - - NA Stadium Funding Trust Reserve (1,742,086) - (1,742,086) 0% - - - NA Unrestricted (347,900) - (347,900) 0% (12,326,081)$ -$ (12,326,081)$ 0% Total Change in Reserves 7,754,934$ -$ 7,754,934$ NA (6,850,011)$ 351,440$ (7,201,451)$ -5% (1)Adjustments include previously approved budget amendments through December 12, 2023.
Santa Clara Stadium Authority
Operating Budget Status Report
For the Period Ending September 30, 2023 and 2022
Period Ending September 30, 2022Period Ending September 30, 2023 17 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 Authorit y Board adopted the Santa Clara Stadium Authority FY 2023/24 Operating, Debt Service, and Capital Budget. The following technical budget adjustments are recommended to true up fund balances to aligned the balances with FY 2022/23 actual performance:
1) Beginning Fund Balance / Ending Fund Balance Adjustment for Legal Contingency Reserve - Public Safety Costs: The FY 2022/23 year-end actual was completed and fund balance adjustments totaling $845,725 is necessary to correct the allocation for the reserve to reflect the required amount in the FY 2023/24 beginning and ending fund balances. This action has a net zero impact to the fund balance because it reallocates Fund Balance from Unrestricted to Legal Contingency Reserve - Public Safety Costs.
2) Beginning Fund Balance / Ending Fund Balance Adjustment for Operating Reserve:
The FY 2022/23 year -end actual was completed and fund balance adjustments totaling $12,887 is necessary to correct the allocation for the reserve t o reflect the required amount in the FY 2023/24 beginning and ending fund balances. This action has a net zero impact to the f und balance because it reallocates fund balance from Operating Reserve to Unrestricted.
Additional details are shown in Table 11.
18 Table 11 (continued)
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
- Public Safety Costs /
Ending Fund Balance
– Legal Contingency
Reserve - Public
Safety Costs
$845,725 $845,725 This action increases the
Beginning and Ending Fund
Balances for Legal Contingency
Reserve - Public Safety Costs
from $3,401,000 to $4,246,725
as a result of FY 2022/23 year-
end actuals reconciliation. This
action reallocates Fund Balance
from Unrestricted to Legal
Contingency Reserve - Public
Safety Costs to reflect the final
required reserve amount based
on FY 2022/23 year-end actual
performance.
2 Beginning Fund
Balance – Operating
Reserve / Ending
Fund Balance –
Operating Reserve
$(12,887) $(12,887) This action decreases the
Beginning and Ending Fund
Balances for Operating Reserve
from $25,348,289 to
$25,335,402 as a result of FY
2022/23 year-end actuals
reconciliation.
1 and 2 Beginning Fund
Balance –
Unrestricted / Ending
Fund Balance –
Unrestricted
$(832,838) (832,838) This action decreases the
Beginning and Ending Fund
Balance – Unrestricted from
$14,713,116 to $13,880,278 as a
result of FY 2022/23 year-end
actuals reconciliation.
Total $0 $0
19 Debt Service Budget
The Stadium Authority’s FY 2023/24 debt service revenue budget of $2.7 million represents anticipated contributions from the Community Facilities District (CFD). The 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 the first two quarters, $1.5 million was contributed by the CFD, or 54% of the annual budget. Of this amount, $1.4 million was collected and used to pay down the CFD Advance.
Total Stadium Authority debt service expenses for the current reporting period were $21.8 million, or 78% of the budgeted amount. The debt service expenses for the CFD Advance and the Term A Loan were $1.4 million and $20.5 million, respectively.
As of September 30, 2023, the total outstanding amount of Stadium Authority debt had declined to $229.3 million. This is a reduction in principal of $16.0 million from the March 31, 2023 outstanding debt amount of $245.3 million.
Additional details are shown in Tables 12 and 13 and Chart 1.
20 Table 12
Budget to Budget to
Amended(1)
YTD Actual % Final YTD Actual %
Budget Actuals Difference Received Budget Actuals Difference Received Revenue
Contribution from CFD 2,696,000$ 1,450,249$ 1,245,751$ 54% 2,323,000$ 898,755$ 1,424,245$ 39% Total Revenues 2,696,000$ 1,450,249$ 1,245,751$ 54% 2,323,000$ 898,755$ 1,424,245$ 39% Transfers In
Transfers In from Operating 25,457,000$ 10,678,707$ 14,778,293$ 42% 46,341,580$ 12,337,956$ 34,003,624$ 27% Total Transfers In 25,457,000$ 10,678,707$ 14,778,293$ 42% 46,341,580$ 12,337,956$ 34,003,624$ 27% Budget to Budget to
Amended(1) YTD Actual Final YTD Actual
Budget Actuals Difference % Used Budget Actuals Difference % Used Expenses
CFD Advance 2,379,000$ 1,367,597$ 1,011,403$ 57% 2,241,000$ 978,325$ 1,262,675$ 44% Term A Loan 25,457,000 20,457,906 4,999,094 80% 25,494,000 20,108,381$ 5,385,619 79% StadCo Subordinated Loan - - - NA 20,847,580 1,393,384$ 19,454,196 7% Total Expenses 27,836,000$ 21,825,503$ 6,010,497$ 78% 48,582,580$ 22,480,091$ 26,102,489$ 46% (1)Adjustments include previously approved budget amendments through December 12, 2023.
Debt Service Budget Status Report
For the Period Ending September 30, 2023 and 2022
Period Ending September 30, 2022
Santa Clara Stadium Authority
Period Ending September 30, 2023
21 Table 13
Chart 1
Type of Indebtedness Interest Rates
Outstanding as of
March 31, 2023 Net Change
Outstanding as of
September 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 (513,259) 29,346,239 Total $ 245,274,737 $ (15,972,259) $ 229,302,479 Period Ending September 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 Sep 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
$245.3 $229.3
22 Capital Improvement Project (CIP) Budget
As part of the Capital Expense (“CapEx”) Plan, the following projects have been completed as of the current reporting period:
• Mobile Security Closed Circuit Television Pop Up Trailers • Security Control Situation Room Enhancements
The following projects were underway during the current reporting period:
• High Voltage (PMSGT, Battery & 12KV Main Circuit Breakers) • Aesthetic Improvements – Premium Areas/Special Event Spaces • General Areas/Coating Main Deck
• New Seating – Bowl Padded Seat Replacement Project
• Stadium Event Signage
• Women’s Locker Room
• Concrete Replacements
• LED Retrofit Project – Exterior 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
• Smoke Evacuation System – Fire Smoke Curtain Replacement • Overhead Doors, Motors, Sensors and Track Replacements • High Voltage (480V Electrical Power Study, Assessments and Replacements – Phase 2
• Concessions Cart Cabling for Portable Carts
The CIP Budget increased from $20.5 million to $20.7 million in the current reporting period. A total of $4.0 million has been spent during the first two quarters of FY 2023/24, which amounts to 19% of the budget. The main reason that this is below budget is due to the timing of activity for Capital Expenditure projects. There has also been little activity on warranty work which makes up 7% of the CIP Budget.
On August 31, 2022, the Stadium Authority entered into a settlement agreement with StadCo and the Stadium Manager over disputes regarding the operating and management expenses, shared expenses, and capital expenditures that were previously withheld. As part of the settlement, in regard to Capital Expenditures , the Stadium Authority agreed to discontinue the temporary practice of withholding payment for Capital Expenditures subject to the review and approval of the prevailing wage documentation by Stadium Authority’s labor law compliance consultant. Under the S ettlement Agreement, Stadium Manager further confirmed its obligation to comply with applicable laws, including Prevailing Wage Laws, and Stadium Manager also implemented its new internal Prevailing Wage Laws compliance policy and procedures. Accordingly, the Stadium Authority will process the invoice payments as they come in.
23 Additional details are shown below in Table 14.
24 Table 14
Budget to Budget to
Amended(1)
YTD Actual Final YTD Actual
Budget Actuals Difference %
Received Budget Actuals Difference %
Received
Revenue
Interest -$ 56,336$ (56,336)$ NA -$ -$ -$ NA Total Revenue -$ 56,336$ (56,336)$ NA -$ -$ -$ NA Transfers In
Transfers In from Operating 3,915,000$ -$ 3,915,000$ 0% 3,800,310$ -$ 3,800,310$ 0% Total Transfers In 3,915,000$ -$ 3,915,000$ 0% 3,800,310$ -$ 3,800,310$ 0% Budget to Budget to
Amended(1) YTD Actual Final YTD Actual
Budget Actuals Difference % Used Budget Actuals Difference % Used Expenses
Construction 11,186,220$ 3,492,949$ 7,693,271$ 31% 14,034,892$ 513,714$ 13,521,178$ 4% Equipment 7,372,196 5,481 7,366,715 0% 6,602,240 472,047 6,130,193 7% Contingency & Misc 903,052 525,344 377,708 58% 962,743 - 962,743 0% Stadium Warranty Related Constructio 1,528,202 - 1,528,202 0% 1,528,202 - 1,528,202 0% Total Expenses 20,989,670$ 4,023,774$ 16,965,896$ 19% 23,128,077$ 985,761$ 22,142,316$ 4% (1)Adjustments include previously approved budget amendments through December 12, 2023.
CIP Budget Status Report
For the Period Ending September 30, 2023 and 2022
Period Ending September 30, 2022
Santa Clara Stadium Authority
Period Ending September 30, 2023
25 City of Santa Clara Net General Fund Impact
During the current reporting period there was a total of $871,000 that was contributed to the General Fund as shown in Table 15. This section of the report also provides information on General Fund revenue and expenditure impacts resulting from the stadium.
Table 15
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 $ 3.2 million 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 come from a combination of payments from the Stadium Manager and the offsite parking fees that were collected. The 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 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 outstanding NFL public safety costs for NFL events 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 the first quarter of FY 2023 /24, a total of $ 919,000 of administrative costs were incurred by the General Fund, which have been reimbursed to the City.
Ground Rent 495,000$
Performance Rent -
Senior and Youth Fee 69,313
Sales Tax 306, 234
870,547$
City of Santa Clara
Net General Fund Impact
For Stadium Authority
Total Net General Fund Impact
Period Ending September 30, 2023
26 Rents and Senior and Youth Fee
As noted above, the City’s General Fund collected ground rent of $495,000. Additionally, the Senior and Youth Fee generated $ 69,000, 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 quarter of sales tax collections from Levi’s® Stadium transactions generated $306 ,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 posses sory 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 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.
27 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 Non- NFL events are required to collect a Non- NFL event 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 $1 million can be transferred to the General Fund, in which event an equal amount will also be transferred from the discretionary fund to the Stadium Authority operating fund and will be included as revenue available to pay Stadium Authority expenses.
Ground Lease – The Ground Lease Agreement has an initial term of 40 years commencing on the date of substantial completion which was July 31, 2014. The amount of annual base ground rent that is payable by the Stadium Authority to the City is noted in the Table 16.
28 Table 16
Net Non-NFL Event Revenue – Net Non -NFL event revenue is remitted by Stadium Manager to the Stadium Authority on a yearly basis. This is done annually because the final reconciliation of the Non- NFL event revenues and expenses does not occur until after the conclusion of each fiscal year.
NFL Ticket Surcharge – The Amended and Restated Non-Relocation Agreement states that the Team will collect a 10% NFL ticket surcharge on the price of admission to all NFL games on behalf of Stadium Authority.
Leas e Year Fis cal Year
Annual Fixed
Ground Rent
Cumulative
Total
1 2014/15 180,000$ 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$
29 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 event 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 Non- NFL public safety costs for a particular event held at Levi’s® Stadium, the offsite parking fee that is collected for said event partly offsets the total public safety costs owed for that event. In the City’s FY 2023 /24 (July 1, 2023 through June 30, 2024) the offsite parking fee is $6.44.
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 fifty percent (50%) of the net income from Non- NFL events less the sum of the Performance- Based Rent Credits. The Performance- Based Rent Credits include the sum of the following (1) fifty percent (50%) of the fixed ground rent for the current lease year, (2) the amount, if any, that the Public Safety Costs exceed the Public Safety Cost Threshold for the current lease year, (3) following the Tax Allocation Termination Date, the amount of Received Possessory Interest Tax (PIT), and (4) the amount of any credit for Disproportionate Taxes 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 departments 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 Non- NFL event expenses on behalf of the Stadium Authority. Therefore, the cost of providing pu blic 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 NFL ticket sold on behalf of the 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.
30 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 annual stadium management fee for each of the first ten lease years are noted in the Table 17 below.
Table 17
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