7/16/2024 Item 4
Santa Clara Stadium
Authority
Discussion, Consideration, and Direction to
Staff Regarding Actions to be Taken in
Response to the Santa Clara County Civil
Grand Jury Report Entitled «Outplayed:
Measure J, the City of Santa Clara, and the
San Francisco 49ers "
SCSA July 16, 2024, Item #4
SANTA CLARA STADIUM AUTHORITY
1 Civil Grand Jury
• The Civil Grand Jury is an investigatory body that may examine all aspects of county and city government and special districts to ensure that the best interests of Santa Clara County residents are being served. • It reviews and evaluates procedures, methods and systems utilized by local government to determine whether more efficient and economical programs may be employed.
• Once each year, Superior Court judicial officers seek volunteers to apply for service on the Civil Grand Jury and nominate thirty prospective grand jurors from the pool of applicants.
• The prospective grand jurors are invited to appear before the Presiding Judge of the Superior Court at a ceremony. At that time, names are drawn randomly to form a panel of 19.
• Grand Jurors serve a minimum term of one year.
SCSA 2
2 POST MEETING MATERIAL
1 7/16/2024 Item 4
Civil Grand Jury Report
• On June 13, 2024, the Santa Clara County Civil Grand Jury published a report entitled "Outplayed: Measure J, the City of Santa Clara, and the San Francisco 49ers" which includes various findings and recommendations. • Penal Code Section 933(c) requires that a governing body of the particular public agency or department that has been the subject of a Civil Grand Jury final report to respond within 90 days on the specified findings and recommendations pertaining to matters under the control of the governing body.
• The City and Stadium Authority's responses on the Civil Grand Jury report findings and recommendations are due by September 11, 2024. • Staff is not aware of any requests for individual responses from City Council/Board members for this report.
SCSA 3
SANTA CLARA STADIUM AUTHORITY
3 City/Stadium Authority Response Required
• The Civil Grand Jury report included a total of 20 findings and 13 recommendations.
• The Stadium Authority, as an agency, has been directed to respond to all of the findings and 13 recommendations.
• Some findings/recommendations may require a City or joint City and Stadium Authority response instead of a response from only the Stadium Authority.
SCSA 4
SANTA CLARA STADIUM AUTHORITY
4 7/16/2024 Item 4
Findings
OUTPLAYED:
Measure J, the City of Santa Clara, and the Requiring
San Francisco 49ers
City/Stadium
Authority
2025-24 Santa Clara Couns
Civil Grand Jury
June 1S 2028
Response
SCSA 5
SANTA CLARA STADIUM AUTHORITY
5 Legally Required Responses for Findings
• Penal Code Section 933.05(a) requires the responding
entity to indicate one of the following for each Civil Grand Jury finding:
1. The respondent agrees with the finding.
2. The respondent disagrees wholly or partially with the finding, in which case the response will specify the
portion of the finding that is disputed and will include an explanation of the reasons therefor.
SCSA 6
SANTA CLARA STADIUM AUTHORITY
6 7/16/2024 Item 4
OUTPLAYED: • Finding 1: From the beginning, the City
Measure J. the City of Santa Clara, and the
was impatient and overmatched in its
San Francisco 49ers
negotiation posture with the 49ers to the
long-term detriment of the City/Stadium
Authority
2023-24 Santa Clara County
he 3.204
SCSA
7 7
OUTPLAYED: • Finding 2: The City has not studied the
Measure J, the City of Santa Clara, and the
San Francisco 49ers actual economic impact of the Stadium.
The 49ers have produced their own
studies, which they use to tout long-term
unverified benefits and frame all
discussions surrounding the success of
2023-24 Santa Clara County the Stadium.
Civil Grand Jury
Лета 13,202
SCSA 8
SANTA CLARA STADIUM AUTHORITY
8 4
7/16/2024 Item 4
OUTPLAYED: • Finding 3: Measure J's promise to
Measure J, the City of Santa Clara, and the
San Francisco 49ers protect the City's General Fund has been realized. The funding structure from the
Stadium Lease has successfully allowed
the Stadium Authority to pay off Stadium
construction loans and fund required
2023-24 Santa Clara County Waterfall reserves faster than originally Civil Grand Jury
Jaтe 18.20.4 planned.
SCSA 9
SANTA CLARA STADIUM AUTHORITY
9 OUTPLAYED: • Finding 4: The City/Stadium Authority
Measure J. the City of Santa Clara, and the
San Francisco 49ers agreed to use ManCo, an affiliate of the 49ers, with an inherent conflict of interest
to handle the Stadium Authority's
financial interests in non-NFL events.
2023-24 Santa Clara County
Civil Grand Jury
Лете 13. 2034
SCSA 10
SANTA CLARA STADIUM AUTHORITY
10 5
7/16/2024 Item 4
OUTPLAYED: • Finding 5: The City/Stadium Authority
Measure J, the City of Santa Clara, and the
San Francisco 49ers failed to ensure that the Management Agreement included a fair termination
clause.
2023-24 Santa Clara County
Civil Grand Jury
Jate 15. 2024
SCSA
11 SANTA CLARA STADIUM AUTHORITY
11 OUTPLAYED: • Finding 6a: The City/Stadium Authority
Measure J, the City of Santa Clara, and the
San Francisco 49ers failed to ensure the Management
Agreement provided the Stadium
Authority with full access to financial
records.
2023-24 Santa Clara County
Civil Grand Jury
here 13.2034
SCSA 12
SANTA CLARA STADIUM AUTHORITY
12 6
7/16/2024 Item 4
OUTPLAYED: • Finding 6b: ManCo's financial
Measure J. the City of Santa Clara, and the
San Francisco 49ers transparency with the Stadium Authority has improved with the implementation in
2022 of a new financial management
system.
2023-24 Santa Clara County
Civil Grand Jury
SCSA
13 SANTA CLARA STADIUM AUTHORITY
13 OUTPLAYED: • Finding 6c: Transaction-level testing
Measure J, the City of Santa Clara, and the
San Francisco 49ers generally supports ManCo's reporting of financial results for non-NFL events.
2023-24 Santa Clara County
Civil Grand Jury
June 13,2024
SCSA 14
SANTA CLARA STADIUM AUTHORITY
14 7/16/2024 Item 4
• Finding 7a: The City/Stadium Authority
OUTPLAYED: failed to ensure that the original
Measure J, the City of Santa Clara, and the Management Agreement and the 2022 San Francisco 49ers
settlement agreement contained
sufficient language requiring specific
items or methods and performance
metrics to prioritize Stadium Authority
revenue generation. This has resulted in
2023-24 Santa Clara County
Civil Grand Juirs
a failure to hold ManCo accountable for
Jane 13. 2024
the success of non-NFL events.
SCSA 15
SANTA CLARA STADIUM AUTHORITY
15 OUTPLAYED: • Finding 7b: The Stadium Authority failed Meastire J, the City of Santa Clara, and the
to use the prescribed Marketing
San Francisco 49ers
Correction Plan per Article 3.3.1 of the
Management Agreement process to hold
ManCo accountable for unsuccessful
non-NFL event bookings.
2023-24 Santa Clara County
Civil Grand Jury
Jere 13.2024
SCSA 16
SANTA CLARA STADIUM AUTHORITY
16 8
7/16/2024 Item 4
OUTPLAYED: • Finding 8a: There is no evidence
Measure J, the City of Santa Clara, and the
Sau Francisco 49ers showing that ManCo is negotiating to maximize Stadium Authority profits for
non-NFL events.
2023-24 Santa Clara County
Civil Grand Jury
Jane 13.2014
SCSA 17
SANTA CLARA STADIUM AUTHORITY
17 OUTPLAYED: • Finding 8b: The Stadium Authority has
Measure J, the City of Santa Clara, and the
San Francisco 49ers failed to ensure the Management
Agreement requires ManCo to incentivize
its staff to prioritize the Stadium
Authority's success. There is no evidence
that there are employee sales goals,
2023-24 Santa Clara County metrics, or consequences related to Civil Grand Jury
unprofitable non-NFL events.
SCSA 18
SANTA CLARA STADIUM AUTHORITY
18 9
7/16/2024 Item 4
OUTPLAYED: • Finding 9a: StadCo/ManCo interprets
Measure J. the City of Santa Clara, and the
San Francisco 49ers the Stadium Lease to require non-NFL ticket surcharges be applied to tickets
associated with Rental and Trophy
Luxury Suites, but failed to remit all
corresponding surcharges to the Stadium
2023-24 Santa Clara County Authority.
Civil Grand Jury
J67413,4929
SCSA 19
SANTA CLARA STADIUM AUTHORITY
19 OUTPLAYED: • Finding 9b: StadCo/ManCo interprets
Measure J, the City of Santa Clara, and the
the Stadium Lease to not require non-
San Francisco 49ers
NFL ticket surcharges to be applied to
Seating Bowl complimentary tickets and
Owners Club Luxury Suite tickets.
2023-24 Santa Clara County
Civil Grand Jury
SCSA 20
SANTA CLARA STADIUM AUTHORITY
20 10
7/16/2024 Item 4
OUTPLAYED: • Finding 9c: Suite ticket revenue
Measure J. the City of Santa Clara, and the
San Francisco 49ers submitted to the Stadium Authority does not account for suite ticket revenue for
certain suite attendees.
2023-24 Santa Clara County
Civil Grand Jury
SCSA
21 SANTA CLARA STADIUM AUTHORITY
21 OUTPLAYED: • Finding 10a: Most revenue from non-
Measure J, the City of Santa Clara, and the
San Francisco 49ers NFL events goes to the promoter, which is typical. StadCo can make money on
luxury suites regardless of the event's
profitability for the Stadium Authority.
2023-24 Santa Clara County
Civil Grand Jury
Лете 13,1024
SCSA
SANTA CLARA STADIUM AUTHORITY
22 11
7/16/2024 Item 4
OUTPLAYED: • Finding 10b: The Stadium Authority is
Measure J, the City of Santa Clara, and the
San Francisco 49ers unaware of the market revenue potential for non-NFL events at the Stadium. The
Stadium Authority does not know what
net revenues should be expected for non-
NFL, ticketed and non-ticketed, events.
2023-24 Santa Clara County
Civil Grand Jury
Лте 13.2034
SCSA 23
SANTA CLARA STADIUM AUTHORITY
23 • Finding 11: Per the Stadium Lease, the
OUTPLAYED:
Stadium Authority failed to negotiate
Measure J, the City of Santa Clara, and the
San Francisco 49ers pertinent details about buffet costs in the contract, such as parameters on cost
thresholds and alcohol. The Stadium
Authority accepted responsibility for
buffet costs but failed to follow up when
2023-24 Santa Clara County
the expense was omitted from ManCo's
Civil Grand Jury
Jane 13, 2024
budgets.
SCSA 24
SANTA CLARA STADIUM AUTHORITY
24 12
7/16/2024 Item 4
OUTPLAYED: • Finding 12: A Multi-Use Community
Measure J, the City of Santa Clara, and the Facility at the Stadium was one of San Francisco 49ers
Measure J's original promises and was
memorialized in the Stadium Lease. The
current designated space for the
Community Room at the Stadium is not
easily accessible nor is it pragmatic for
2023-24 Santa Clara County
Civil Grand Jury
most civic events.
SCSA 25
SANTA CLARA STADIUM AUTHORITY
25 OUTPLAYED: • Finding 13: The FIFA World Cup
Measure J, the City of Santa Clara, and the
San Francisco 49ers commitments for the City and the
Stadium Authority were made without
consultation with the City/Stadium
Authority.
2023-24 Santa Clara County
Civil Grand Jury
Pone 13, 202
SCSA 26
SANTA CLARA STADIUM AUTHORITY
26 7/16/2024 Item 4
Recommendations
OUTPLAYED:
Measure J, the City of Santa Clara, and the Requiring
San Francisco 49ers
City/Stadium
Authority
2023-24 Santa Clara County
Civil Grand Jury
Sate 13. 2024
Response
SCSA 27
SANTA CLARA STADIUM AUTHORITY
27 Legally Required Responses for Recommendations
• Penal Code Section 933.05(b) requires the responding
entity to report one of the following actions for each Civil Grand Jury recommendation:
1. The recommendation has been implemented, with a
summary regarding the implemented action.
2. The recommendation has not yet been implemented,
but will be implemented in the future, with a timeframe for implementation.
SCSA 28
SANTA CLARA STADIUM AUTHORITY
28 14
7/16/2024 Item 4
Legally Required Responses for Recommendations
3. The recommendation requires further analysis, with an explanation and the scope and parameters of an analysis or study, and a timeframe for the matter to be prepared for discussion by the officer or head of the agency or
department being investigated or reviewed, including the governing body of the public agency when applicable.
This timeframe cannot exceed six months from the date of publication of the grand jury report.
4. The recommendation will not be implemented because it is not warranted or is not reasonable, with an explanation therefor.
SCSA 29
SANTA CLARA STADIUM AUTHORITY
29 • Recommendation 1: Given the long-
OUTPLAYED:
Measure J, the City of Santa Clara, and the term nature of the various agreements, San Francisco 49ers
the 49ers' sophistication, and the history
of past disputes, the City/Stadium
Authority should engage advisors with
specialized knowledge to determine
options to level the playing field.
2023-24 Santa Clara County
Civil Grand Jury
SCSA 30
SANTA CLARA STADIUM AUTHORITY
30 15
7/16/2024 Item 4
OUTPLAYED: • Recommendation 2: The City should
Measure J, the City of Santa Clara, and the
commission its own report to determine
San Francisco 49ers
the Stadium's actual economic impact
over the last decade. This
recommendation should be implemented
by July 1, 2025.
2025-24 Santa Clara Counts
Civil Grand Jury
7286 15. 2021
SCSA 31
SANTA CLARA STADIUM AUTHORITY
31 • Recommendation 3: The May 2024
settlement agreement gives the Board/City
Council new flexibility to divert Excess
OUTPLAYED:
Measure J, the City of Santa Clara, and the Revenue from the Stadium Authority to the San Francisco 49ers
City's General Fund. When diverting Excess
Revenue, the Board/City Council should be
mindful of the long-term financial health of the
Stadium Authority and request the Treasurer to
produce a long-term plan for funding all
2023-24 Santa Clara County
required Stadium reserves, including reserves
Civil Grand Jury
for capital improvements. This
recommendation should be implemented by
October 31, 2024.
SCSA 32
SANTA CLARA STADIUM AUTHORITY
32 16
7/16/2024 Item 4
• Recommendation 7: The Stadium Authority
should retain the expertise needed to
OUTPLAYED:
meaningfully weigh in on ManCo's Marketing
Measure J, the City of Santa Clara, and the
San Francisco 49ers Plan to ensure that the Stadium Authority's profitability is maximized. The Stadium
Authority should also establish a yearly audit
procedure to measure and analyze each
season's Marketing Plan against its
2023-24 Santa Clara County outcomes, updating future plans based on a Grand us
this analysis. This recommendation should be
implemented by December 31, 2024.
* The Civil Grand Jury identified Recommendations 7a and 7b, which are not listed, for Stadium Authority SCSA response; however, Recommendation 7 does exist and appears to be relevant for Stadium Authority 33 SANTA CLARA STADIUM AUTHORITY response.
33 • Recommendation 8: As part of the
OUTPLAYED: Marketing Plan, Stadium Authority should
Measure J, the City of Santa Clara, and the
San Francisco 49ers require that ManCo produce a marketing plan that maximizes profits for the
Stadium Authority and incentivizes ManCo
marketing staff to prioritize the profitability
of the Stadium Authority. This
2023-24 Santa Clara County recommendation should be implemented Civil Grand Jury
Are 11.204 by December 31, 2024.
SCSA 34
SANTA CLARA STADIUM AUTHORITY
34 7/16/2024 Item 4
• Recommendation 9: The Stadium
OUTPLAYED: Authority should review and ensure that it
Measure J, the City of Santa Clara, and the
San Francisco 49ers receives all a) non-NFL event ticket surcharges for all event attendees, and b
ticket revenue for all suite attendees owed
to the Stadium Authority. This
recommendation should be implemented
2023-24 Santa Clara County by October 31, 2024.
Civil Grand Jury
see 13.2014
SCSA 35
SANTA CLARA STADIUM AUTHORITY
35 • Recommendation 10: The Stadium Authority should
hire a professional third-party consultant, not
affiliated with the 49ers, to analyze the reasonable
OUTPLAYED:
expectations for non-NFL events such as:
Measure J, the City of Santa Clara, and the
San Francisco 49ers • An analysis of the market revenue potential for non-NFL events at the Stadium.
• An analysis of ManCo's Marketing Plans,
comparing successful (FY 2022-23) and
unsuccessful (FY 2017-18) bookings to
potential market revenue.
2023-24 Santa Clara Counts
Civil Grand Jury A plan with measurable objectives and
here 13.2034
incentives for ManCo to achieve these results.
This recommendation should be implemented by
December 31, 2024.
SCSA 36
SANTA CLARA STADIUM AUTHORITY
36 18
7/16/2024 Item 4
• Recommendation 12: The Stadium is not
OUTPLAYED: an appropriate location for a Community
Measure J. the City of Santa Clara, and the
San Francisco 49ers Facility. The Stadium Authority should work with the 49ers to identify and procure
an alternative space for community needs.
This recommendation should be
implemented by June 30, 2025.
2023-24 Santa Clara County
Civil Grand Jury
SCSA 37
SANTA CLARA STADIUM AUTHORITY
37 • Recommendation 13: The Stadium
OUTPLAYED: Authority should insist on consultation and
Measure J, the City of Santa Clara, and the
prior notice before any major Stadium
San Francisco 49ers
event commitments are made. This
recommendation should be implemented
by December 31, 2024.
2023-24 Santa Clara County
Civil Grand Jury
SCSA 38
SANTA CLARA STADIUM AUTHORITY
38 19
7/16/2024 Item 4
OUTPLAYED:
• Recommendations 4, 5, and 11 which
Measure J, the City of Santa Clara, and the
San Francisco 49ers were identified for City/Stadium Authority response provide no recommendation.
• Recommendations 6a, 6b and 6c provide
no recommendation and were not
identified for City/Stadium Authority
2023-24 Santa Clara County
response.
Civil Grand Jury
SCSA 39
SANTA CLARA STADIUM AUTHORITY
39 Next Steps
• Staff is requesting that the Council/Board provide direction on the process it would like to follow to develop the City/Stadium Authority's required responses by September 11, 2024.
• The Council/Board could provide input tonight or alternatively, due to tonight's heavy agenda, direct the scheduling of a special meeting to address the pending responses for both the "Irreconcilable Differences" and "Outplayed" Civil Grand Jury reports.
• Staff could then bring draft responses back to the Council/Board for review and possible approval at the August 27, 2024 Council/Board Meeting, or at a special meeting (or meetings) to be determined.
SCSA 40
SANTA CLARA STADIUM AUTHORITY
40 20
7/16/2024 Item 4
SCSA
Santa Clara Stadium Authority
41 21
'July 16, 2024 Suds Presentation Item #4
I'm relying on this document for my data as well as KPMG report and May 28, 2024 staff presentation SCSA
Santa Clara Stadium Authority
SANTA CLARA
STADIUM AUTHORITY
FINANCIAL STATUS REPORT
Quarter Ending December 31, 2023
1 I relied on this presentation by Staff at the May 28, 2024 Council Meeting Santa Clara Stadium
Authority
Action on Amendment No. 2 to the Ground Lease and Amendment No. 1 to the Restated and Amended Stadium Lease to Implement the Settlement Agreement and Mutual Release (Buffet and Public Safety Cost Arbitration) with Forty Niners SC Stadium Company LLC and Forty Niners Stadium Management Company LLC
May 28, 2024, #24-578
SCSA
SANTA CLARA STADEUR AUERORITY
2 POST MEETING MATERIAL
1 July 16, 2024 Suds Presentation Item #4
Debt Summary Repor
Period Ending December 31, 202
Outstanding as of Outstanding as of
pe of Indebtedne Interest Rates March 31, 2023 Net Change December 31, 2023 adium Funding Trust Lo
Term A Loan 5.00% 215,415,240 $ (15,459,000) S 199,956,240 StadCo CFD Advanc Total 5.73% 29.859.497 (815,357) 29.044,140 245,274,737 $ (16,274,367) S 229,000,380
Chart 1
Total Outstanding Debt (in millions)
$700
S653.4
$600 $561.6
$500 $484.7
$429.8
$100 $396.1 S382.7
53402 $3253
$300 $296.8 $280.3
$245.3 $229,0
$200
$100
$41.1
s.
Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Dec 2023 • Construction Loan • StadCo Agency Advance •Term B Loan • Term A Loan #StadCo CFD Advance •StadCo Subordinated Loan 3 Waterfall: Excess Revenues Distribution
Excess Revenues Distribution: if revenues exceeds expenses in a lease year the Excess Revenues are required to be distributed in the order as set forth in Article 14 of the Stadium Lease agreement as shown below.
1. Payoff any 6. Fund Operating Expense 7. Fund Renovation / outstanding ManCo Reserve up to $20M - Complete Demolition Reserve if the Revolving Loan - N/A in FY2022/23, Annual 3% balance is less than $70M- Contribution Ongoing In progress
2. Fund Future Stadium
Authority Expenses up 8. Additional
5. Repay any outstanding disbursements can be used
$2M - Completed in FY principal balance on Subordinate to pay Stadium Authority 2014/15 Loan - Completed in FY 2022/23
Discretionary Expense,
including the City's general
3. Fund Stadium Capita fund - Future Allocation
Expenditure Reserve up 4. Fund Operating Expense
to $1M - Annual Reserve up to $10M - Complet
in FY 2014/15
29 contribution
4 2
July 16, 2024 Suds Presentation Item #4
Period Ending December 31, 2023
Budget to
Amended" YTD Actual
Actuals Difference Received.
Reven Trader Surcharge 654,645 55%
SEL Proceeds 5 12179000 $ 12574185 S 12,174,685 414,315 Interest 1,249,000 3,164,860 (1,915,880)
et Revenues from Non-NFL Eve 4,500,000 0%
7,602,000 3,74,699 3,857,301 49%
aming Righ
Sponsorship Reverve (STR) 475,000 407.523 67,477 Amended Budget for FY 2024 24,762,000 19,946,500 4,815,500
Senter & Yuen Program Fees 234,000 216,108 92%
Non-AFL Evert Ticket Surcharge 1,296,000 (296,360) 123% Other Reverse 22500 , 2400 г 120037) Total Revenue $64.9M Total Revenue
Total Operating Expenses: $23.5M
Budget to Net Revenue: $41.5M
Amended" YTO Actual
Budget Actuals Difference Used
Expenses
Shared Stadium Manager Expenses Debt Service $25.4M
Stadium Operations 1.152,884 75%
289000 30201 581,95€
Guest Services €45,000 482,636 162,36
Groundskeeping €50,000 436,944 161,056 75%
1,174,386 369,614 75% YTD actuals cover only 3 out of 4 quarters Securty 1,564,000
insurance 3,327,000 2,495,378 831,622 75% BUT TD Net Revenue: $52.8M - $16.4M = Stadium Management Fee 255,370 261,14
Shared Stadium Mngr Exps Subtotal 10.305.874 3.610.64 $ 36.4M Other Operating Expenses
SEL Sales and Service 1,749,936 S 75%
Senior &. Youth Fees (Paid to Cty) 2333000 216,108
Ground Rent (paid to Cry) 495,000 495,000 100%
Performance Rent (paid to CRy)
Discretionary Fund Expense 250,000 250,000
Usties 1,391,000 927,030 463,970 67%
Use of StadCo Tenant Improvements 121,065 4,663 56%
Stadium Authority GS.A 3,919,900 1,961,902 50%
Naming Rights Commission 94,000 93,618 382 100%
Legal Contingency
ther Expen: 734,000 550,191 183,809
ther Operating Expenses Subto 9.571.965 3 6412-157 3465.60. 106.283 S $ 223510485 1 7.106.323
Total Expenses
Transfers Out
Debt Service 3 25457,000 $ 17.297,708 3 8,159.292 68%
5 KPNG
500 Capitol Mall, Ste 2100 Sacramento, CA 95814-4754
Independent Auditors' Report
The Board of Directors
Santa Clara Stadium Authority:
Report on the Audit of the Financial Statements
Opinion
Ne have audited the financial statements of the Santa Clara Stadium Authority (the Stadium Authority), a component of the City of Santa Clara, as of and for the years ended March 31,2023 and 2022, and the related notes to the financial statements, which collectively comprise the Stadium Authority's basic financial statements for the years then ended a listed in the table of contents
our opinion, the accompanying financial statements referred to above present fairly, in all material respects, t lancial position of the Stadium Authority as of March 31, 2023 and 2022, and the changes in its financial position a its cash flows for the years then ended in accordance with U.S. generally accepted accounting principles. 6 3
July 16, 2024 Suds Presentation Item #4
FROM KPMG REPORT FOR YEARS ENDING March 31, 2023 and 2022 Financial Highlights
Key financial highlights for the fiscal year ended March 31,2023 are as follows:
The carrying value of Levis Stadium at March 31, 2023, net of depreciation, is $683,106,548. : During the ical year, there were were Mational Footballeague (NFL) games, saven ticketed Nom ANEL events. and sixty-nine smaller special events held at Levi's Stadium. : The Statium Autoily recognized 572, 153-423 in operating revenue and $419,06,823 in operating expenses.
The revenues from the Non-NFL events were $19,574,275 and the related expenses were $10,765, 108 resulting it net Non-NFL event profit of $8,809, 167
• Debt service payments during the fiscal year totaled $48,589,277. Overall remaining outstanding debt was reduce y $35,038,955. The Stadium Authority also paid off the StadCo Subordinated Loan during the year • The assets of the Stadium Authority exceeded its liabilities by $109,570,809 due to income from the operation of Levi's Stadium.
Suds note: For FY2023: SCSA revenue $72.2 M and Operating Expenses $49.1M → $ 23.1 M Net Revenue 7 Table 16
City of Santa Clara
Net General Fund Impact
For Stadium Authority
Period Ending December 31, 2023
Ground Rent $ 495,000
Performance Rent 216,108
Senior and Youth Fee
Sales Tax 657,763
Total Net General Fund Impact $1,368,872
NOTE: There was no Performance Rent because Non-NFL profits were banked in the Liability Contingency Fund.
The May 2024 settlement released those banked funds and the City of Santa Clara press release on May 23, 2024 estimated at S2.8M next fiscal year, FY 2024-25).
8 4
July 16, 2024 Suds Presentation Item #4
Table 5
Levi's® Stadium
Ticketed Non-NEL Events Penur 3h, 25xpenditure Summary
In Millions $
Ticketed Event Revenue Expense Net
Concert 1 2.8 S 1.1 $
Concert 2 2.6 1.6
Concert 3 2.5 1.7 0.8
Concert 4 2.5 1.4
Concert 5 1.8 0.7
Sporting Event 1 1.1
Sporting Event 2 0.5
Sporting Event 3 0.7 (0.7)
Total Ticketed Non-NFL Net Revenue to Date I$ 14.815 8.9 $ 5.9 9 Table 6
Levi's Stadium
Net Revenue for Non-NFL Events
by Event Type
Historical Year-to-Date through December 31, 2023
2019/20 2020/21 2021/22 2022/23 2023/24
Net Net No. of Net No. of Net No. of Net
No. of No. of
Events Revenue"") Events Revenue" Events Revenue(" Events Revenue!" Events Revenue!" Concerts 1 856,583 $ 6 S6,131,747 5 $ 5,600,578
(3.170,926 • • 451,890
Soccer 65.295 3 305,067
Miscellaneous event 2 (458,609) 0 0
Subtotal Ticketed Event 8 5 (2,838.247) 000 S6,583,637 5 5.905,64:
Subtotal Special Events (weddings, corporale events, elc.) 79 1,492,331 $ 1998.619 37 5 1,191,84 Subtotal Other Operating Income resenesen $ 1,712,309
Subtotal Other Operating Expenses 3 (21098 5(495.578) S(1.057,378 Total Non.NFL Net Revenue 87 63 $8.086,678 45 S 7.752,417 Does not include non-NFL ticket surcharge revenue
10 5
July 16, 2024 Suds Presentation Item #4
From May 28, 2024 Staff presentation. Actual per Game Public Safety Costs went up from $245.5M to $521.5M That calculates to an annual increase of 8.7% over 9 years.
PSC Costs Over the Threshold
$600,000 $586,201
$S17,185 $521,494
$177,677
$500,000
$400,000
$300,251 $145,132
$303,125
$245,541 3243,790 $263,682
3300,000
52326570 211,963
- 5198,876 5205,831 $215,108
$
1st Season 2nd Season 3id Season 4tl Season 5th Season 6th Season 7th Season 8th Season 9th Season 10th Season (2014-15) (2015-16) (2016-17) (2017-18) (2018-19) (2019-20) (2020-21) (2021-22) (2022-23) (2023-21) EST Total PSC Costs Lesse Threshold (4X)
SCSA 36
SANTA CLARA STAGION AUTHORITY
11 August 24, 2017 Stadium Authority Meeting
Agenda item 8.D. Informational and Possible Action Report: Stadium Manager Presentation on Non-NFL Events
Matt Prieshoff, Chief Operation Officer at Live Nation in California "Live Nation has produced multiple sold out events at Levi's Stadium including One Direction and Luke Bryan in 2015, two sold out Beyoncé shows in 2016 as well as sold out Coldplay show in 2016. U2 is later this year and we are exciting for Coldplay coming back for what we anticipate to be another sold out show on Wednesday, October 4th. Live Nation is the leader in live entertainment in the world, close to over 26,000 events last year and over 71 million fans attending those events. Now we standing with this volume and our standing in the industry, we can't dictate to the artist what venue to play, what day of the week to play or where to play on a specific date. However, we can and do present Levi's Stadium to the artist for what we believe it to be, an appealing venue and a very appealing city with the large array of modern and first class amenities. However, the city diminishes our opportunity to book events there and our enthusiasm to play with a 10pm curfew 5 out of the 7 days a week. It will be increasingly difficult for us to book acts at this venue with this curfew. The Rose Bowl in Pasadena, AT&T Park in San Francisco, Shoreline Amphitheatre, Oakland Coliseum, Concord Pavilion, Qualcomm Stadium, the Hollywood Bowl, Dodger Stadium all have 11:00pm curfew every day of the week. We keep wanting to do events here, we want to keep doing sold out events here and generate revenue for the City of Santa Clara. We are currently looking at an event that we believe will sell out Levi's Stadium in 2018. But if 5 of those 7 days a week are not available until 11:00pm it will be very difficult for this artist to play. We are looking for a compromise of up to 4-5 nights per year that would go to 11:00pm, which is 1% a year for all days. On October 4th, l invite you to attend Coldplay. It is one of the best shows I have ever seen in my 25 years of working in this business. I want you to imagine for a second the 45,000 people that are coming to or from your City to attend that event that are having dinner here, having drinks here, that are getting gas here. I want you to imagine their faces when the confetti go off and the fireworks go up in the air, I want you to imagine their faces smiling when leaving the event. Now can you imagine those 45,000 faces at the event in Northern California instead of your city."
POST MEETING MATERIAL
CAL
FIRE
SINCE 1885
CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION
OFFICE OF THE STATE FIRE MARSHAL
FIRE ENGINEERING
FIREWORKS PROGRAM
P.O. Box 944246, Sacramento, California 94244-2460
(916) 445-8373 Fax (916) 445-8458
PYROTECHNIC OPERATOR POST DISPLAY REPORT
Pursuant to California Code of Regulations, Title 19, Section 1005(a) within ten (10) working days following any public display, the licensed pyrotechnic operator in charge of the display shall submit a complete, accurate and factual written report directly to the State Fire Marshal Failure to comply with these requirements may result in suspension or revocation of your license.
I._ LARRy E StANFil ME 835•55 11, CSEM license number 14-10 , Pyrotechnic Operator (Name and Phone Number)
supervising the discharge of fireworks for this display, submit the following report per Title 19, Section 1005:
FIREWORKS COMPANY NAME AND PHONE NUMBER GPD# 1413
I MAGE ENGINeeriNG
FIREWORKS COMPANY ADDRESS
3525 PerryMAN Ct. 3 Curtis Bay Md 21226
4. DATE OF DISPLAY 5. TIME OF DISPLAY
10/27/19 FROM 1:08 1:08
to
EXACT LOCATION OF DISPLAY
Levi Stadium Santa Clara CA
8. INJURY TO PERSON FROM FIREWORKS. PROVIDE INJURED PERSON's NAME AND ADDRESS Verbal notification is required within 24 hours to the State Fire Marshal in Injury or Death. Santa Chira Fire Wen
9. VIOLATIONS OF HEALTH AND SAFETY CODE OR REGULATIONS RELATING TO PUBLIC DISPLAY OF FIREWORKS.
• | Yes *No
10. FIRES CAUSED BY FIREWORKS. INCLUDE OWNER'S NAME, ADDRESS AND A BRIEF SUMMARY OF INCIDENT.
Verbal notification is required within 24 hours to the State Fire Marshal if emergency action or response was required due to the fire. • Yes I% No
11. RECOMMENDATIONS OR COMMENTS alt was a delective "shell"- 1-4 manufacturer has been notified
12. LIST NAMES OF PYROTECHNIC ASSISTANTS AND STATE FIRE MARSHAL PYROTECHNIC LICENSE NUMBER IF APPLICABLE.
A. B.
Kevin Schulewitch
C. D.
Mike Schule witch
E. F.
14. DATE
3. STEVANURE OF PROTEC ORATOR EY CHARGE Jury 2 10/28/19 Attach additional pages if necessary.
From: MacNeil, Larry
To: Deanna Santana ([email protected]); Walter Rossman ([email protected]); Ruth Shikada; Catlin Ivanetich ([email protected]); Angela Kraetsch ([email protected]) Cc: Mercurio, Jim; Sabatino, Scott
Subject: Taylor Swift - Confidential
Date: Thursday, December 27, 2018 10:52:00 AM
Attachments: image002.ipg
Deanna -
I am following up on your question at our 12/20/18 meeting regarding the Taylor Swift show.
Before answering your question, I want to restate what I said in that meeting. Your public discussion on the economics of individual Non-NFL Events has a material adverse impact on Manco's ability to book Non-NFL Events. Divulging artists' confidential business information, combined with the SCSA's weeknight music ban, impairs Manco's ability to perform its duties.
In the meeting, you said that you have already heard this admonition from our staff many, many times, but I wanted to remind you that your discussion of this particular issue on the Taylor Swift show should remain confidential.
You responded by saying you didn't know if you would or would not keep this confidential, and "that is not Manco's concern".
That is wrong. The SCSA undermining our efforts is Manco's concern.
The SCSA has stated in the past that it is able to maintain the confidentiality of the economics of individual events, but this matter was discussed in an open City Council/SCSA meeting on 12/11/18.
Mayor Gillmor asked about free tickets and you said it was the first time you heard about it and you would look into it. If you were not aware of the complimentary tickets for that show, it is only because you neglected to review the report previously submitted to you by Manco. The Taylor Swift 45-day flash report that was provided to your office more than a month ago clearly shows tickets distributed of 101,876 and tickets sold of 79,836. The report already provided to you also breaks these numbers down by individual show.
As I explained, "papering the house" is a common practice for entertainment events. The promoters and the artists want to have a full house, so if a promoter or an act is unable to sell out an event, for whatever reason, as the event date approaches and they know how many seats will go empty, they will quietly distribute tickets in order to fill the venue. The reasons for this practice are obvious. It makes for a more vibrant experience, supports future demand, and increases ancillary revenues through concessions and parking. Again - the acts and promoters do this quietly. They don't want to talk publicly about a particular act that does not sell out a performance, or about complimentary tickets.
This practice is particularly common when a big act sells out one pre-scheduled show, and then later decides to add a second show to - hopefully - sell out again. And that is what happened with the Taylor Swift show. The challenge was that the second show (on Friday) did not sell as well as the first, and there were a significant number of tickets that the promoter needed to get distributed to paper the house.
The fact that you did not read about this in the media means that the promoter was successful in papering the house. The promoters and acts do not want to have this practice discussed publicly, and they select groups for ticket distribution that are not going to bring attention to the practice.
You asked specifically about the $4.00 surcharge on the distributed comp tickets. There is no surcharge collected for those tickets, since that would not be "complimentary". It would make no sense to ask someone to attend an event at no charge, and then ask them for a $4.00 surcharge.
This is consistent with the language in the lease regarding the $4.00 surcharge:
These tickets were neither sold nor distributed to the "general public". They were distributed to specific targeted groups in order to paper the house. You can imagine the negative impacts of offering free tickets to a Taylor Swift show to the "general public".
Indeed, comp tickets are distributed for nearly every event that happens at Levi's Stadium and every other entertainment venue in the country. The counts of tickets "scanned" versus tickets "sold" are clearly reported on the reports already provided to you.
Larry MacNeil
408.416.1639
San Francisco Chronicle
Ed Sheeran says 'no thanks' to Levi's Stadium show: Curfew kills the buzz Matier & Ross
September 24, 2017
Source: https://www.sfchronicle.com/bayarea/matier-ross/article/Ed-Sheeran-says-no-thanks- to-Levi-s-12222539.php
Santa Clara's concert curfew has prompted British pop phenom Ed Sheeran to drop Levi's Stadium from his 2018 tour.
Sheeran announced a 15-city North American tour via Instagram on Friday, and notably absent from the lineup was a Bay Area stop that had tentatively been planned for Levi's on Aug. 21.
That's a Tuesday night, which would have forced Sheeran to wrap it up by 10 p.m. to comply with the City Council's weeknight deadline for the final song.
Al Guido, the 49ers president who had been negotiating the appearance, said he was told by Sheeran's agent that there was "no way" he'd be done by 10 p.m. - and without a waiver from the city, the deal was scuttled.
"Four thousand hardworking individuals have lost their right to work, residents have lost out on millions of dollars in revenue, and music lovers have been denied an opportunity to view a world-class concert," Guido said. Not to mention that the 49ers lost out on their undisclosed cut, which comes from filling up the stadium's 150 luxury boxes.
But the loss to Santa Clara and the Niners may be the San Francisco Giants' gain. Word is that Sheeran's team is negotiating for the singer to appear at AT&T Park on the same date, when the Giants will be on the road. The Giants declined to comment. "This potential concert loss is news to us," said Santa Clara Mayor Lisa Gillmor, whose council majority has been feuding with the Niners for months over stadium finances.
Weeknight concerts at Levi's Stadium have become a sore spot with Santa Clara. Two acts at Levi's - Beyoncé and U2 - blew right past the 10 p.m. curfew even after the city denied them extensions.
Coldplay is scheduled to play at Levi's next month, even though the City Council voted 4-3 to turn down the group's request for a one-hour curfew extension.
Gillmor said that even before Levi's construction began, the city promised nearby residents that weeknight noise would be limited. Officials are simply living up to that promise, she said.
Guido said the city is being unreasonable.
"The noise ordinance states 10 p.m. (as the curfew), but it also clearly states that the city manager can make exceptions," he said.
According to the team, Santa Clara risks losing out on a big chunk of the estimated $100 million that concerts were expected to deliver to the city over the 40-year stadium contract - money that could support libraries, police and other city services.
Team reps complain that the Great America amusement park next door has gotten permission to go until 1 a.m. up to 30 times a year. The 49ers, meanwhile, have been denied their request for four extensions a year for non-football events.
What's more, Levi's is the only major outdoor stadium in California bound by a 10 p.m. weeknight curfew, the Niners say.
The 49ers aren't looking to book concert acts out of the goodness of their hearts. The team could use the money, because its pigskin division has the customers running for the exits.
As Chronicle sports columnist Ann Killion notes, 1,653 seat license holders - folks who plunked down big money just so they could buy game tickets at Levi's - defaulted on their payments in the past quarter.