5/13/2025 Item #6
Santa Clara Stadium
Authority
Action on Stadium Manager's Request to Execute an
Event Services Agreement with Fanatics Retail Group
Concessions, LLC for Merchandise Concession
Services for Non-NFL Events
May 13, 2025
Item # 6
SCSA 25-926
SITA CLABA STADIUM AUTHORITY
Background
• Stadium Manager proposes a new Event Services Agreement (ESA) with Fanatics for Non-NFL events.
• Fanatics currently manages merchandise sales for NFL events at Levi's® Stadium. • Proposed ESA would formalize and expand their services to include Non-NFL events. • Item was initially presented on March 11, 2025, as part of the Consent Calendar. • Motion failed with a 3-3 vote
• Now returning as a General Business item
• Includes updated data and analysis to support the recommendation SCSA
TANTE COARA FIADIUM AUTHORITY
POST MEETING MATERIAL
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Financial and Operational Benefits
• Expanded merchandise sales locations including main concourse, SAP Tower, upper concourse, and mobile kiosks.
• Promoters can choose between a buyout model or a revenue-sharing model for merchandise sales.
• Financial modeling indicates a +118% increase in last year's (FY23/24) net revenues under the new ESA model.
Total (FY23/24) Net Diff (%)
SCSA Actual Merchandise Revenue ($) $175,241
SCSA Projected Merchandise Revenue Under New Deal Terms ($) $371,197 Net Diff ($) $195,956 +118.21%
SCSA 3
SANTA FLARA STADIUM ARTHORITY
Procurement Process
Sole-source procurement based on Fanatics' unique vertical integration and existing stadium infrastructure
• Fanatics has an established partnership with the NFL and Levi's® Stadium. • Market analysis conducted; no alternative vendor matched Fanatics' end-to-end service merchandise concessions capabilities and experience. Competitors include:
Merchandise and Collectibles Gaming, eCommerce and Retail Merchandise, F&B and Hospitality • Nike • DraftKings Legends (acquired ASM Global)
• Adidas FanDuel Delaware North
• Under Armour BetMGM Aramark Sports and Entertainment
Lids Caesars Sportsbook Levy (Rank + Rally subsidiary)
Mitchell & Ness Amazon
Panini America eBay
Upper Deck Dick's Sporting Goods
Walmart & Target
SCSA 4
JANTA CLARA STADIUM AUTHORITY
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Fanatics Market Analysis
As of 2024, Fanatics has in-venue retail partnerships with 14 NFL teams, managing both e-commerce and physical retail operations. • Some of the NFL stadiums where Fanatics provides merchandise services include:
EverBank Stadium (Jacksonville Jaguars): • Raymond James Stadium (Tampa Bay Operates all Jag Pro Shops and kiosks. Buccaneers): Oversees in-stadium retail to enhance the fan merchandise experience.
• M&T Bank Stadium (Baltimore Ravens):
Manages all retail, including the team's first o Nissan Stadium (Tennessee Titans): Full-service year-round store at the venue. etail and e-commerce partner; partnership xtends to the new stadium opening in 2027
• U.S. Bank Stadium (Minnesota Vikings):
Runs retail operations, contributing to FirstEnergy Stadium (Cleveland Browns):
significant sales growth. lanages all on-site retail; investing in designed Pro Shop and integrating th
FanCash loyalty program.
SCSA 5
SANTA CLARA STAUN AIMONTY
Merchandise Revenue Model Analysis
Revenue splits for merchandise concessions vary across the industry and are typically negotiated independently between the Stadium Manager and the event promoter. • Current Model: Revenues are calculated as net revenue after deducting expenses. • Proposed Model: Tiered structure based on gross sales levels. • Benefits:
• Aligns incentives
Promotes cost control
Encourages maximization of merchandise revenue
SCSA
FACTUM AUTHOZITY
3 5/13/2025 Item #6
Post-March 11 Board Meeting Actions
Staff requested Stadium Manager to conduct an analysis of net revenue projections for Non-NFL Events in FY 2025/26, and negotiate a revised, shorter term for the proposed ESA. • Analysis of FY 2025/26 Net Revenue Projections:
• Applying the new terms to Non-NFL Event merchandise revenue for events in FY 2025/26 should result in an additional $150,000 to $250,000 in net revenue compared to the old terms.
• Revised, Shorter Term for the Proposed ESA:
• Two-year base term with two additional one-year renewal options • Previous proposal included a four-year term
• Subject to Stadium Manager and SCSA Executive Director mutual approval.
SCSA
AMA CLARA STADIUM AUTHORITY
Key Terms of the Proposed ESA
• Complete Agreement:
The Agreement, including Exhibits A-D, is the full and final understanding between the parties, superseding any prior agreements.
• Term and Termination:
Effective April 1, 2025, through March 31, 2027, with up to two one-year extensions by mutual written agreement. Either party may terminate for material breach or without cause with 60 days' notice.
• Scope and Standards:
Contractor must perform services per Exhibit A and meet all applicable professional, legal, and regulatory standards.
• Business Terms:
• Fanatics receives 7% of net revenue or $5,000 (whichever is greater) if gross sales are ≤ $4M. if gross sales exceed $4M, Fanatics receives 8% of net revenue.
For merchandise buyouts, Fanatics is paid a flat $5,000.
SCSA
SANTA CLARA STADIUM AUTHORITY
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Key Terms of the Proposed ESA (cont.]
• Contractor Responsibilities:
Operates independently, responsible for employees and subcontractors, and must comply with all jobsite rules and legal obligations.
• IP and Confidentiality:
Contractor may not use the Stadium Manager's branding without consent and must keep shared information confidential unless legally required to disclose. • Compensation:
Payment terms are detailed in Exhibit B.
• Prevailing Wage:
Contractor must follow California prevailing wage laws and post wage rates on-site; noncompliance may lead to penalties.
SCSA
SANTA CLARA STADIUM ALTHORITY
Recommendation
Staff presents three options for Board consideration and approval:
1. Option 1: Approve the Stadium Manager's request to execute an Event Services Agreement with Fanatics Retail Group Concessions, LLC under the terms presented; or
2. Option 2: Direct the Stadium Manager to issue a Request for Proposal (RFP) for a vendor to operate full-service merchandise concessions for Non-NFL Events at Levi's® Stadium, and in the interim, authorize the Stadium Manager's to execute a one-year Event Services Agreement with Fanatics Retail Group Concessions, LLC under the terms presented, to allow for the initiation and completion of an RFP process; or
3. Option 3: Direct the Stadium Manager to issue a Request for Proposal (RFP) for a vendor to operate full-service merchandise concessions for Non-NFL Events at Levi's® Stadium, and in the interim, continue with the current Non-NFL Event protocol in which Fanatics passes through all service- related expenses, including the concessionaire fee, to the event promoter.
SCSA 10
SANTA CLARA STADION AUTHORITY
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SCSA
Santa Clara Stadium Authority
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