Item #/
2|25/25
Santa Clara Stadium
Authority
Study Session
Proposed Santa Clara Stadium Authority FY 2025/26
Budget, 2025 Marketing Plan, and Compliance and
Management Policies
Item #1 (25-102)
SCSA February 25, 2025
SANTA CLARA STADIUS AUTEDEITY
Agenda
1. Budget Development
2. Methodology and Limitations
3. Budget Flowchart
4. Key Summary
5. Excess Revenues Distribution
6. Stadium Authority Operating Budget
7. Stadium Authority Debt Service Budget
8. Stadium Authority Capital Budget
9. FY 2025/26 Stadium Operations and Maintenance Plan (SOMP)
10. 2025 Marketing Plan
11. Key Summary
2 12. Recommendations
POST MEETING MATERIAL
1 FY 2025/26 Budget Development
October/November 2024 State proute l sat any ed cult a a to discus the sala get pian hich included the dates that Meanco December 2024
At least 45 days prior to the start of the fiscal year (January 31) ManCo provided the required documents per the Stadium Agreements:
Stadium Operations and Maintenance Plan
January 2025 : Annual Shared Expense Budget with Five Year Projection Annual Stadium Authority Operations Budget, Capital Expenditure Plan with Five-Year Projection Annual Public Safety Budget
: 2025 Marketing Plan and Public Safety Document Updates February 2025 Staff submitted a series of questions to ManCo on February 11, 2025, and received responses on February 21.
February 25 & March 4, San Mal Surance Plan Pufic Sary Budget and Making fla senice, and Capital Budget, Stadium operation 2025, if needed
March 11, 2025 Public Hearing to approve the SCSA Proposed Fiscal Year 2024/25 Operating, Debt Service, and Capital Budget March 14, 2025 SCSA Notice of approval/disapproval of the Stadium Manager's Draft Annual Stadium Authority Budget March 21, 2025 Stadium Manager required to submit Adopted Budget to the Trust (10 days prior to start of FY) 3 FY 2025/26 Budget Development (cont.)
General Information
• Year in Review for both NFL and Non-NFL Events
• Excess Revenues Distribution
Operating Budget
• Stadium Authority General and Administrative Budget
• Stadium Manager Shared Expenses and 5 Year Forecast
• 10-Year Forecast (New Section)
Debt Service Budget
Capital Budget
• Capital Expenditure Plan and 5 Year Forecast
Stadium Authority Work Plan
4 2
FY 2025/26 Budget Development (cont.)
Attachments:
1. Proposed Santa Clara Stadium Authority Fiscal Year 2025/26 Operating, Debt Service, and Capital Budget
2. Annual Public Safety Budget
3. 2025 Marketing Plan
4. Stadium Authority Budget Policy
5. Stadium Authority Compliance and Management Policy
5 Methodology and Limitations
The Budget is on an accrual basis, which records revenues and expenses when they are incurred, regardless of when cash is exchanged.
The Budget report was based in part on documentation and submitted by ManCo. on January 31, 2025. Additional responses received February 21, 2025.
The Capital Budget included proposals from both the Stadium Authority and Stadium Manager.
Consistent with terms of the Settlement Agreement finalized December 2024.
Long-term 10-year forecast represents best known data at the time. 3 Stadium Authority Budget Flowchart
Santa Clara
City of Santa Stadium Authority StadCo ManCo
Clara
(SCSA)
• Owns Land Stadium Owner • Leases Stadium • Manages
Ground Leases to Leases Stadium for 49er Football Stadium for SCSA to StadCo during Company StadCo and
the NFL Season SCSA
(6 months)
7 Stadium Authority Budget Flowchart
(cont.)
Stadium Authority Board
Stadium Authority Counsel Auditor: 0.05 FTE
City Attorney's Office: 0.55 FTE
Executive Director
Executive Director's Office: 4.15 Treasurer
Human Resources: 0.06 FTE Finance: 3.23 FTE
Public Works: 0.06 FTE Secretary
communiod evElopment: Asst. Gity Clerk's Office: 0.50 FTE Information Technology: 0.06 FTE
8 4
Stadium Authority Budget Flowchart
(cont.)
ManCo:
Security Suest Service
26 Poalions (50% SCSA Funded) Positions (50% SCSA Fünded Stadium Ops Groundskeeping
24 Positions (50% SCSA Funded) 3 Postions 30%, SCSA Funded Engineering SEL Sales and Service
16 Pontions (50%, SCSA Funded):
Sales Senice
10 Positions (Actual Time SCSA. Funded) 9 Positont (Actual Time SCSA Funded) *Position count is provided by ManCo and does not include positions in Other Expenses 9 Stadium Authority Budget Flowchart
(cont.)
Debt Debt Service Total
Operating Service CapEx
Budget + Budget and Capital Budget
Budget + - Transfers Out
$61.2M $18.6M $77.6M
$20.6M $22.8M
10 5
Stadium Authority FY2025/26 Budget
Key Summary
Implements terms of the 2024 Settlement Agreement
Supports major events including 2026 World Cup and Super Bowl LX Net Non-NFL Events Revenue budgeted at $5.3 million
• Lower than prior two fiscal years (FY)
• FY 2023/24 Actual: $8.3 million
• FY 2024/25 Projection: $9.2 million
Historical performance increases from preliminary budget projection Public Safety Costs (PSC) reimbursements over threshold expenditure is budgeted to be $2.1 million
• $2.0 million from PSC Reserve
• $0.1 million from Discretionary Fund
PSC 2024 Outstanding Balance ($9.2 million in FY 2024/25, $2.8 million in FY 2025/26) 11 • Projected $2.8 million balance at end of FY2025/26 Stadium Authority FY2025/26 Budget
Key Summary (cont.)
Direct payments to the General Fund at $6.2 million
• Performance Rent for FY 2025/26 ($2.2 million, accrual basis) • Projected FY 2025/26 Excess Revenue ($2.8 million)
• Ground Rent ($1.0 million)
• Senior and Youth Fees ($270,000)
Non-NFL Ticket Surcharge revenue is projected to increase $2.0 million, increase of the surcharge from $4 to $8 for tickets sold for certain events Additional $1.0 million to the CapEx fund above contractual requirements to provide additional resources for potential additional CapEx expenses Levi's Naming Rights expense of $1.6 million to cover the Authority's obligations under its Naming Rights Agreement with Levi's to provide suite and tickets to the six 2026 World Cup soccer matches (anticipated 12 additional surcharge of $2.1 million from events)
6 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
outstanding ManCo Reserve up to $20M - Revised
Revolving Loan - N/A Completed in FY2022/23,
Annual 3% Contribution Ongoing
2. Fund Future 8. Public Safety Cost
Stadium Authority 5. Repay any outstanding 2024 Outstandin principal balance on Balance (50% o New
Subordinate Loan - Completed remaining) - In progress
2014/15 in FY 2022/23
3. Fund Stadium
4. Fund Operating Expense
Reserve up to $10M -
Completed in FY 2014/15
13 Excess Revenues Distribution (cont.)
Excess Revenue Cash Reserves Summary
FY 2023/24 FY 2024/25 FY 2025/26
Reserve Category Actual Projected Budget
Capital Expenditure Reserve $19.3M $14.7M $2.BM
Operating Reserve $26.1M $26.9M $27.7M
Renovation/Demolition Reserve $31.4M $43.2M $48.8M
Total $76.8M $84.8M $79.3M
14 Stadium Authority Operating Budget
Key Assumptions in Proposed Operating Budget:
• General and Administrative Expenses - $4.7 million, includes 8.7 full time equivalent positions as a baseline level of support • Cost increased by $399,000 or 8%
15 Stadium Authority Operating Budget
(cont.)
Key Assumptions in Proposed Operating Budget:
Net Non-NFL Events - $5.3 million projected for FY2025/26 • Stadium Manager is projecting six (6) concerts and two (2) soccer events for FY2025/26
Net Non-NFL Events Revenue Summary
FY 2023/24 FY 2024/25 FY 2025/26
Actual Projected Budget
$8.3M $9.3M $5.3M
16 8
Stadium Authority Operating Budget
(cont.)
Key Assumptions in Proposed Operating Budget:
• Stadium Manager Shared Expenses - $14.0 million, includes 72 full time equivalent positions
• Costs increased by $445,000 or 3%
• Groundskeeping due to higher outside services
• Security due to higher compensation costs
SBL Sales and Service - $3.3 million, includes 19 positions charged based on actual time spent
17 Stadium Authority Operating Budget
(cont.)
Key Assumptions in Proposed Operating Budget:
Other Expenses - $1.4 million, includes other supporting staff, software costs, lender fees and share of ManCo staff office space • This is an increase of $687,000 (or 99%) over FY2024/25 Projected Actuals of $696,000
• Main driver is new cost of $620,000 for SCSA share of ManCo office lease space
• This is pending review
18 9
Stadium Authority Operating Budget
(cont.)
Revenues:
Facility Rent $ 24,762,000
NFL Ticket Surcharge 15,034,000
Naming Rights 8,065,000
Non-NFL Event Net Revenue 5,300,000
SBL Proceeds 5,156,000
Non-NFL Event Ticket Surcharge 3,426,000
Interest 3,421,000
Sponsorship Revenue (STR) 722,000
Senior & Youth Program Fees 270,000
Non-NFL Events PSC Depreciation Reimbursement 89,000
19 Total Revenues $66,245,000
Stadium Authority Operating Budget
(cont.)
Expenses:
Shared Stadium Manager Expenses $13,999,000
Stadium Authority General & Administrative 4,687,000
SBL Sales and Service 3,251,000
Public Safety Costs (PS) 2024 Outstanding Balance 2,820,000 Transfer to City General Fund from Excess Revenues 2,820,000 $6.2
Performance Rent 2,150,000
million
PSC Over Threshold 2,143,000 projected
Utilities 1,796,000 to the
Naming Rights Expenses 1,699,000 City's
Other Expenses 1,383,000 General
Fund
Ground Rent 1,000,000
Senior and Youth Program Fees 270,000
Discretionary Fund Expense 250,000
Use of StadCo Tenant Improvements 106,000
20 Total Expenses $38,374,000
10 Stadium Authority Operating Budget
(cont.)
General and Administrative Budget
Amended Proposed Amended
Expense Type 52868000 53,38,00 S 450000) Budget
Staff Support
Legal Services 495,000 (20,000)
Audit Services 193,000 160,000 33,000
Consultants
- Community
Outreach/Communications/Engagement 100,000 100,000
- Noise Monitoring 87,000 87,000 48.000
495,000 449,000
40,000 50,000 (10,000)
Total $4,28000 4087,000 $ (399,000)
21 Stadium Authority Operating Budget
(cont.)
Discretionary Fund
50% of FY
2025/26 Base
Projected Non-NFL Event FY 2025/26 Public Safety Projected Beginning Ticket Discretionary Costs Over Ending
Balance Surcharge Fund Expense Threshold Balance
$1,101,000 $701,000 $250,000 $120,000 $1,432,000
• The Discretionary Fund will be used to cover NFL public safety costs above the public safety cost threshold, public safety capital expenses, and other items at the Stadium Authority's discretion. Reimbursements of $2.03 million are anticipated in FY 2024/25.
22 11
Stadium Authority Operating Budget
(cont.)
Performance Rent Calculation
• Stadium Authority pays the City performance-based rent on top of the fixed ground rent
• Performance-based rent is equal to 50% of the net income from Non-NFL events less 50% of the ground rent and any credited public safety costs
• Credited public safety costs is the amount by which public safety costs exceed the public safety costs threshold
• Performance-based rent is remitted to the City in July following the Stadium Authority's fiscal year-end.
23 Stadium Authority Operating Budget
(cont.)
Performance Rent Calculation (cont.)
Non-NFL Event Net Revenue (in millions)
510,0 $8.8 $9.3
$8.3
$8.0
$6.1
$6.0 $5.2 $5.3 $5.z $5.3
$4.0
520
$-
$(0.5) $(0.3)
$12.01
$(2.7)
March Mars Mort Marsh 2055 March March March March March March March 2015 2016 2020 2021 2022 2023 2024 2025 2026
(Forecast) (Budget)
24 12
Stadium Authority Operating Budget
(cont-)
Performance Rent Calculation (cont.)
Fiscal Year
2024/25 Fiscal Year
Performance Rent Calculation Projection 2025/26 Budget
Ground Rent $ 1,000,000 $ 1,000,000
Net Non-NFL Event Revenue (Expense) 9,250,000 5,300,000 50% of Net Non-NFL Event Revenue (Expense) $ 4,625,000 $ 2,650,000 Performance Rent Credit from Ground Rent (50% of Ground Rent) (500,000) (500,000) Subtotal S 2,150,000
Public Safety Credits 4,25000 g
Other Credits
2024 Settlement Agreement Payout for Performance Rent 7,325,000 Net Performance Rent paid to the City of Santa Clara $ 11,450,000 $ 2,150,000 Per Stadium Lease Paragraph 7.5.3(a), credited public safety costs is the amount by which public safety costs exceed the public safety costs threshold.
25 Stadium Authority Operating Budget
(cont.)
Shared Stadium Manager Expenses (cont.)
There are twenty (20) positions added to Security, two (2) positions removed from Stadium Ops and one (1) position removed from Engineering:
• Security: FTE is increasing by 20 positions
• Security is transitioning operations in-house. Budget includes three months of security under outside services and nine months for in-house personnel.
• Improve quality and consistency of security personnel, enhanced operational control, and improved customer and stakeholder experience 26 13
Stadium Authority Operating Budget
(cont.)
Shared Stadium Manager Expenses (cont.)
• Stadium Operations: FTE is decreasing by two positions • Coordinator position was eliminated
• Associate Counsel position transition out of SSE and will track actual time spent on SCSA related work and charge to Non-NFL Events, SBL Sales and Service and Other as necessary
• Engineering: FTE is decreasing by one position
• Director of Engineering position was eliminated
27 Stadium Authority Operating Budget
(cont.)
Santa Clara Stadium Authority Proportionate Share of Stadium Expenses ( operations Guest Services Groundskeeping Total
Security Engineering
Total Compensation 2) $ 1,374,236 $ 2,842,347 $ 2,100,239 301,232 103,425 $ 6,721,479 Travel, Meals & Entertainment 16,295 162,381 11,300 46,875 3,261 240,112 Outside Service 258,439 22,768 1,571,544 69,839 383,669 2,236,420 4,604 23,368 10,463 54,834 162,908
Telepha Supplies 315,681
22,321 281,233 9,844 1,786 497
176,871 142,016 33,878 4,208 3,104 360,077
27,902 10,324 41,713 1,035 80,974
Other 24.274 24.724 4.180 20.173 73,351
Subtotal S 1.904,942 S 3,498,837 3.751.772 485,626 549,825 S 10,191,002 Insurance 3,427,000
277,000
Management Fee *) 3 13,895,002
"The Santa Clara Stadam Authority proportionate share of stadium expenses is rounded to the nearest $1,000 in the operating budge 'Total compensation is based on a total of 72 full time equivalent postion i The stadium manages i agents sea a as manage a 342500 is e e ear it at second as far as an or ace ang 35%, This base management fee is split 50/50 between Stadium Authonly and StadCo. 28 14
Stadium Authority Ten-Year Forecast
Excess revenues projected in each year, $13.5 million in FY2025/26 to $8.2 million in FY2034/35
• Excess revenue transfers to City's General Fund in each year fluctuates from $2.8 million to $6.3 million, will be factored into City General Fund Forecast update
Public Safety Cost 2024 Outstanding Balance paid off in FY 2027/28 Renovation/Demolition Reserve filled to $70 million by FY 2030/31 Overall Stadium Authority Reserves increase from $96.2 million in FY2025/26 to $122.3 million in FY2034/35
Direct impact to City's General Fund including rent, Senior and Youth Fees and Stadium Authority Excess Revenue fluctuates from $5.7 million to $10.0 million 29 Stadium Authority Debt Service Budget
FY 2025/26
Debt Type Budget
CFD Advance $3,565,000
Term A Loan $17,080,000
Total $20,645,000
• Debt service amount of $20.6 million includes principal payment of $9.9 million and interest payment of $10.7 million
• Total outstanding debt is projected to decrease by $9.9 million from $219.7 million to $209.8 million
30 15
Stadium Authority Debt Service Budget
(cont.)
Total Outstanding Debt (in millions)
$700
S6534 68% reduction in
$600 outstanding debt
$561.6
from March 2014
$500
$464.7
$429.8
$396.1 $382.7
$400
$340.2 S325.3
S296.8
$300 $280.3
5245.3 52287 $2197 6208.9
$200
$100
$41.1
$-
March March March March March March Merch
2026
(forecast) (budgel)
*Construction Loan #StadCo Agency Advance a Term B Loan a Term A Loan • StadCo CFD Advance = StadCo Subordinated Loan 31 Stadium Authority Capital Budget
Total Capital Budget of $18.6 million
• Stadium Improvements: $17.1 million
• New Projects: $5.2 million
• Construction ($4.0 million): LED Retrofit, Structural Steel Coating, Boilers, Escalator Canopies Bird Proofing
• Equipment ($907,000): Medical Equipment, Kawasaki ATVs • Contingency ($248,000)
• Carryover Projects: $11.9 million
• Construction ($8.5 million): Lighting Systems, Waterproofing/Caulk/Joint Replacements • Equipment ($2.8 million): Radio Booth Cabling, Main Kitchen Equipment • Contingency ($565,000)
• Stadium Warranty-Related Construction: $1.5 million
Outstanding projects and claims are under review, upon confirmation that no warranty work is anticipated, funds can be allocated to general Stadium improvements 32 16
Stadium Authority Capital Budget
(cont.)
New Capital Expenditure Projects
• LED Retrofit Project -
Phase 2 ($1.1 million) -
Replace existing fixtures
hat are no longer
nanufactured and/oi
inefficient lighting fixtures
• Boilers ($500,000) -
replaces boiler and/or
critical boiler support
components
LED Retrofit
33 Stadium Authority Capital Budget
(cont.)
Carryover Capital Expenditure Projects
• Naming Rights Signage POVISTADIUM
($1.6 million) - Replacement
of Levi's Signage under First
Amendment to the Naming
Rights Agreement
• Lighting Systems - ($2.7
million) - Replaces current
metal halide stadium
field/sports lights with Levi's Naming Rights
outdoor LED retrofit. Signage Refurbishment
34 17
Stadium Authority Capital Budget
(cont.)
FY2024/25 Projects
12A: 02-
Aesthetic Improvements - Premium Club Levi's Naming Rights Signage Refurbishment Areas / Special Event Spaces
35 Stadium Operations and
Maintenance Plan (SOMP)
The Management Agreement requires the Stadium Manager to prepare a SOMP designed to achieve a safe and well-maintained Stadium.
Staff is reviewing this confidential document and will share the City and Stadium Authority's comments directly with the Stadium Manager. • The SOMP is approved administratively.
Board received an email on why the SOMP is confidential. 36 18
2025 Marketing Plan
• The Stadium Manager submitted the 2025 Marketing Plan as part of annual Budget process.
• Staff has hired a consultant to evaluate marketing strategies, media plans, and performance data for the 2025 Marketing Plan. • Staff plans to work with the Stadium Manager in the upcoming year to continue to refine and implement the Marketing Plan. Three key focus areas:
• Evaluating marketing and branding consistency
• Assessing media plans for efficiency and return on investment (ROI) • Interpreting performance data to identify trends and opportunities for 37 improvement
Stadium Authority FY2025/26 Budget
Key Summary
Implements terms of the 2024 Settlement Agreement
Supports major events including 2026 World Cup and Super Bowl LX Net Non-NFL Events Revenue budgeted at $5.3 million
• Lower than prior two fiscal years (FY )
FY 2023/24 Actual: $8.3 million
FY 2024/25 Projection: $9.2 million
• Historical performance increases from preliminary budget projection Public Safety Costs (PSC) reimbursements over threshold expenditure is budgeted to be $2.1 million
• $2.0 million from PSC Reserve
$0.1 million from Discretionary Fund
PSC 2024 Outstanding Balance ($9.2 million in FY 2024/25, $2.8 million in FY 2025/26) 38 • Projected $2.8 million balance at end of FY2025/26 19 Stadium Authority FY2025/26 Budget
Key Summary (cont.)
• Direct payments to the General Fund at $6.2 million
• Performance Rent for FY 2025/26 ($2.2 million, accrual basis) • Projected FY 2025/26 Excess Revenue ($2.8 million)
• Ground Rent ($1.0 million)
• Senior and Youth Fees ($270,000)
Non-NFL Ticket Surcharge revenue is projected to increase $2.0 million, increase of the surcharge from $4 to $8 for tickets sold for certain events O Additional $1.0 million to the CapEx fund above contractual requirements to provide additional resources for potential additional CapEx expenses Levi's Naming Rights expense of $1.6 million to cover the Authority's obligations under its Naming Rights Agreement with Levi's to provide suite and tickets to the six 2026 World Cup soccer matches (anticipated 39 additional surcharge of $2.1 million from events)
Recommendations
1. Review and Provide Input on the Proposed Santa Clara Stadium Authority Fiscal Year 2025/26 Operating, Debt Service, and Capital Budget, Draft 2025 Levi's Stadium Events Marketing Plan, and Proposed Stadium Authority Budget, Compliance and Management Policies
40 20
Santa Clara Stadium
Authority
Study Session
Proposed Santa Clara Stadium Authority FY 2025/26
Budget, 2025 Marketing Plan, and Compliance and
Management Policies
Item #1 (25-102)
SCSA February 25, 2025
ANTA CLARA STADIUM AUTHORITY
21