3/10/2026 Item # 5
Santa Clara Stadium
Authority
Public Hearing
Action on the Proposed Santa Clara Stadium Authority FY 2026/27 Budget, and Compliance and Management
Policies, and 2026 Marketing Plan
Item #5 (26-45)
SCSA March 10, 2026
ANTA CLARA GTADIUM AUTHORITY
Agenda
1. Staff Presentation 2. Board Questions
i. Opening Remarks / Key Themes i. Q/A on Staff Presentatior il. Budget Development Schedule /
Process 3. Stadiudga rese risentation
ili. Budget Flowchart Remarks
iv. Key Summary
v. Updates After Study Sessions 4. Board Questions
vi. Excess Revenues Distribution i. Q/A on Stadium Manager vii. Stadium Authority Operating Budget Presentation
viii. Stadium Authority Debt Service Budget
ix. Stadium Authority Capital Budget 5. Public Comment
x. 2026 Marketing Plan 6. Board Deliberation & Action
xi. Summary / Key Themes
2 xii. Staff Recommendations
POST MEETING MATERIAL
1 3/10/2026 Item #5
Opening Remarks/Key Themes
• Entering the 13"h year of Stadium operations
• Santa Clara Stadium Authority (SCSA)
• A public body, separate and distinct from the City
> Established to provide for the development and operation of Levi's Stadium
• Structured so that the City is not liable for the debts or obligations of the Authority
• City owns land, SCSA owns stadium
• Lease Agreement with StadCo provides for Base Rent,
Performance Rent, and, to the extent available, Excess Revenue to the City's General Fund
Opening Remarks/Key Themes
• SCSA To-date
• 200+ Major Events & 9M+ Attendance
r 70% Reduction in Original Construction Debt
From $653M in March 2017 to $199M by March 2027
• Total Revenue Provided to General Fund = $51.6M
• Ahead of the Lease projections (Exhibit J) by $6.4M
~ Renovation & Demolition Fund Progress
• Required to be @ $7OM by Year 40, projected to be $58.4M in FY 26-27 (Year 13)
• Resolved Disputes
• Buffet Costs (Annual Cap Implemented)
Public Safety Threshold Increased
• Structured Repayment of $14.8M SCSA Public Safety Balance • New Revenue Stream - Enhanced Ticket Surcharge
4 • $25M Transferred to General Fund in the last 24 months 2 3/10/2026 Item # 5
Opening Remarks/Key Themes
• Proposed FY 2026-27 Budget = $79.5M
• Elevated Revenues & Strong Operating and Cash Reserves = $88.7M • Direct Payments to the City's General Fund = $7.5M
Challenges
• Significant Capital Needs Projected
• FY 26-27 Capital Request More Than Double Prior Forecast FY 27-28 and Beyond More than Triple Prior Forecast
Requires further analysis and negotiations with Stadium Manager and/or Tenant (StadCo)
5 Opening Remarks/Key Themes
Challenges, continued
• Not in alignment with Stadium Manager Recommendations • Office Rent Request
• SCSA Funding for NFL Mandated Security Enhancements
• Further Inquiry Needed on...
• . Stadium Builder License Staffing
Recommendations for Capital Project Forecast
FY 27-28 and Beyond
6 3
3/10/2026 Item #5
Recommendations
1. Adopt the Santa Clara Stadium Authority Fiscal Year 2026/27 Operating, Debt Service, and Capital Budget;
2. With respect to the CapEx Plan:
(a) Approve the Fiscal Year 2026/27 CapEx projects (Year One), of the Stadium Manager's 5-Year Capital Expenditure Plan, including such projects that are to be completed over Multiple Years;
(b) do not approve at this time CapEx projects to be commenced after Fiscal Year 2026/27 (Years 2 through 5); and
(c) upon completion of the Stadium Manager's FCA, Stadium Authority staff's evaluation and completion of its own FCA, and further discussions with Stadium Manager, return to the Board with staff's recommendation for Stadium Authority action on the CapEx program for Years 2 through 5;
Recommendations (cont.)
3. Note and file the 2026 Levi's Stadium Marketing Plan;
4. Authorize the Executive Director to amend the Agreement with Canyon Oaks Ventures, LLC to extend the term through December 31, 2026, and increase the not-to-exceed amount up to $130,000, as needed, to complete the described scope of work for a Stadium Non-NFL Event Marketing Plan Review and Market Trend Analysis;
5. Adopt the Stadium Authority Board Budget Policy; and
6. Adopt the Stadium Authority Board Compliance and Management Policy. 4 3/10/2026 Item # 5
Stadium Authority Treasurer
Kenn Lee
FY 2026/27 Budget Development
October/November 2025 State prote i at are un a adieus the ful get ran which included the dates that anco December 2025 508 to ano for ever and no pratin ure a la, pugie Safe Capital Expenses, and Discretionary Fund Agemen says prior to the start of the focal year (January 30) Manco provided the required documents per the stadium Stadium Operations and Maintenance Plar
January 2026 • Annual Shared Expense Budget with Five Year Projectior Annual Stadium Authority Operations Budget, Capital Expenditure Plan with Five-Year Projection • Annual Public Safety Budget
2026 Marketing Plan and Public Safety Document Updates
February 2026 Staff submitted a series of questions to ManCo on February 10, 2026, and received responses on February 23rd.
February 24, 2026
March 5, 2026 Maiden ancy Fans Puli Sial Brage and opening Plant Senice, and Capital Budget, Stadium Operation and March 10, 2026 Public Hearing to approve the SCSA Proposed Fiscal Year 2026/27 Operating, Debt Service, and Capital Budget March 13, 2026 SCSA Notice of approval/disapproval of the Stadium Manager's Draft Annual Stadium Authority Budget March 20, 2026 Stadium Manager required to submit Adopted Budget to the Trust (10 days prior to start of FY) 10 5
3/10/2026 Item # 5
FY 2026/27 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
11 Stadium Authority Budget Flowchart
Debt Debt Service
Operating CapEx Total
Service Budget and Capital
Budget + Budget + - Transfers Out = Budget
$64.4M $21.0M $21.9M $27.8M $79.5M
12 6
3/10/2026 Item # 5
Stadium Authority FY2026/27 Budget
Key Summary
Net Non-NFL Events Revenue budgeted at $4.6 million
Public Safety Costs (PSC) reimbursements over threshold expenditure is budgeted to be $2.5 million
PSC 2024 Outstanding Balance ($4.9 million in FY 2025/26, $0.4 million in FY 2026/27)
Budget supports 2026 World Cup events
Direct payments to the General Fund at $7.5 million
Additional $5.7 million transfer to the CapEx fund to projects necessary to maintain the facility pending finalization of a facility condition assessment 13 Stadium Authority FY2026/27 Budget
Updates after Study Sessions
Stadium Manager Offsite Leased Office Space
• During the FY 2025/26 budget process $620,000 was proposed to be included under Other Expenses by Stadium Manager
. The Stadium Manager has proposed this cost again within Other Expenses for FY 2026/27
Based on Study Session feedback and staff review, the Stadium Authority does not recommend including ManCo's request in this year's budget
ManCo and Stadium Authority to meet and confer process in accordance with contractual agreements
14 3/10/2026 Item #5
Stadium Authority FY2026/27 Budget
Updates after Study Sessions (cont.)
• Shared Stadium Manager Expenses: Security
The Stadium Manager's FY 2026/27 Security Shared Expense budget includes a new cost for implementing a new NFL-mandated 24/7 security protocol at the stadium
• The Stadium Authority's 50% share of the new protocol is estimated at $350,000-$400,000 annually
• The request is currently under review by the Police Department and staff needs additional time to evaluate the cost under the Stadium Management Agreement
• Staff recommends the reduction of the Shared Stadium Manager Expenses - Security line item by $400,000 from the proposed budget while discussion continues with the Stadium Manager
15 Stadium Authority FY2026/27 Budget
Updates after Study Sessions (cont.)
• CapEx Projects Carryover
• The Stadium Manager provided update to cancel several long-standing carryover CapEx projects (originally requested between FY 2016/17 and FY 2023/24), removing $316,000 from the budget.
Project and Construction Management Firm costs were reallocated to the specific projects being managed to better reflect true project costs • Carryover funding from certain projects were combined with new project funding to support additional scope of previously approved work • Minor adjustments were made to several other CapEx projects • These changes resulted in total CapEx budget reduction of $358,000 16 8
3/10/2026 Item #5
Stadium Authority FY2026/27 Budget
Updates after Study Sessions (cont.)
Stadium Manager's Five-Year Capital Expenses
The Stadium Manager proposed a significant investment in capital expenses in the years beyond FY 2026/27
• Staff needs more time to review these projects and analyze them in conjunction with Facilities Condition Assessments (FCAs) • Staff recommends approving (First Year) FY 2026/27 CapEx projects and not approving FY 2027/28 to FY 2030/31 projects
• Projects included as part of multi-year, multi-phase are recommender or approval (e.g. LED Lighting Replacement
• Upon completion of FCAs, staff will return to board with recommended action on the FY 2027/28 to FY 2030/31 CapEx program
17 Stadium Authority FY2026/27 Budget
Updates after Study Sessions (cont.)
• Civic Event and Discretionary Fund Expense
• FY 2026/27 Proposed Budget originally included $1.3M in the Discretionary Fund for a potential Civic Event at Levi's Stadium • On February 24, 2026, the Board approved the Civic Event to occur on February 28, 2026 and a $1 million FY 2025/26 budget amendment funded from the Discretionary Fund Reserve
• FY 2026/27 Discretionary Fund beginning balance and expenses were each reduced by $1M to reflect the event occurring in FY 2025/26 instead of FY 2026/27 (only a timing difference, no impact to ending balance).
18 9
3/10/2026 Item # 5
Stadium Authority FY2026/27 Budget
Updates after Study Sessions (cont.)
• Public Safety Cost (PSC) 2024 Outstanding balance
• Projected paydown increased in FY 2025/26 resulting in a smaller balance carried forward into FY 2026/27
• This change resulted in total reduction of $415,000 in the PSC 2024 Outstanding balance in FY 2026/27
Transfer to the City General Fund
• The changes described above results in an additional $924,000 in Excess Revenue available for transfer to the City's General fund 19 Stadium Authority FY2026/27 Budget
Updates after Study Sessions (cont.)
Summary of Changes to Expenses
From Study Session
($ in thousands)
Operating Expense Line Items Study Current Change
Session
Shared Stadium Expense - Security $2,742 $2,342 ($400)
Discretionary Fund Expense $1,250 $250 ($1,000)
$1,717 $1,097 ($620)
PSC 2024 Outstanding Balance $836 $421 ($415)
Transfer to the City's General Fund $3,550 $4,474 $924
Total Changes to Operating Expenses ($1,511)
Capital Expense Line Items Study Current Change
Session
Construction $12,129 $11,747 ($382)
Equipment $6.690 $6.746 $56
20 Contingency $1,882 $1850 ($32)
Total Changes to Capital Expenses ($358)
10 3/10/2026 Item #5
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 (contributions and balances projected below are as of 03/31/26).
1. Payoff any outstanding 6. Fund Operating Expense
ManCo Revolving Loan - 7. Fund Renovation /
Reserve up to $20M - Annual 3% Demolition Reserve (50% if less N/A
Contribution Ongoing: $27.7M than $70M) - In progress: $53.5l balance projected balance projected
2. Fund Future Stadium
Authority Expenses up to
$2M - Completed in FY 8. Public Safety Cost 2024
2014/15 5. Repay any outstanding
principal balance on Subordinate Outstanding Balance (50% of Loan - Completed in FY 2022/23 remaining) - In progress: $0.4M balance projected
3. Fund Stadium Capital
Expenditure Reserve up to 4. Fund Operating Expense
$1M + 3% Annual Inflator - Reserve up to $10M - Completed in 9. Additional disbursements Annual Contribution Ongoing: can be used to pay Stadium $1.4M contribution projected FY 2014/15
21 $4.9M contribution projected
Excess Revenues Distribution (cont.)
Excess Revenue Cash Reserves Summary
(cash based)
FY 2024/25 FY 2025/26 FY 2026/27
Reserve Category Actual Projected Budget
Capital Expenditure Reserve $16.9M $12.0M $1.7M
Operating Reserve $26.9M $27.7M $28.5M
Renovation/Demolition Reserve $43.8M $53.5M $58.4M
Total $87.5M $93.2M $88.6M
22 11
3/10/2026 Item # 5
Stadium Authority Operating Budget
Key Assumptions in Proposed Operating Budget:
• General and Administrative Expenses - $4.6 million, includes 7.9 full time equivalent positions as a baseline level of support • Budget decreased by $120,000 or 3%
FIFA
SAN FRANCISCE BAV AREA
23 Stadium Authority Operating Budget
(cont.)
Key Assumptions in Proposed Operating Budget:
• Net Non-NFL Events - $4.6 million projected for FY2026/27 • Stadium Manager is projecting four (4) concerts and two (1) soccer events for FY2026/27
Net Non-NFL Events Revenue Summary
FY 2024/25 FY 2025/26 FY 2026/27
Actual Projected Budget
$10.2M $6.2M $4.6M
24 12
3/10/2026 Item #5
Stadium Authority Operating Budget
(cont.)
Key Assumptions in Proposed Operating Budget:
• Stadium Manager Shared Expenses - $14.8 million, includes 75 full time equivalent positions
• FY 2024/25 Actuals: $11.8 million; FY 2025/26 Projected: $13.8 million • Costs increased by $859,000 or 6%
• Higher compensation costs in Stadium Ops and Security SBL Sales and Service - $2.5 million, includes 12.4 positions charged based on actual time spent
FY 2024/25 Actuals: $2.3 million; FY 2025/26 Projected: $2.3 million • Future organizational assessment of SBL Sales and Service by third- party consultant and review time tracking details
25 Stadium Authority Operating Budget
(cont.)
Revenues:
Facility Rent $ 24,762,000
NFL Ticket Surcharge 16,166,000
Naming Rights 8,307,000
SBL Proceeds 5,154,000
Non-NFL Event Net Revenue 4,600,000
Non-NFL Event Ticket Surcharge 4,097,000
Interest 3,155,000
Sponsorship Revenue (STR) 794,000
Senior & Youth Program Fees 248,000
Non-NFL Events PSC Depreciation Reimbursement 84,000
26 Total Revenues $67,367,000
13 3/10/2026 Item # 5
Stadium Authority Operating Budget
(cont.)
Expenses:
Shared Stadium Manager Expenses $14,848,000
Stadium Authority General & Administrative 4,567,000
Transfer to City General Fund from Excess Revenues 4,474,000 → PSC Over Threshold 2,500,000
SBL Sales and Service 2,468,000
Utilities 1,868,000
Performance Rent 1.00.000 →
Other Expenses 1,097,000
Ground Rent 1,000,000 →
Buffet Costs 859,000
Public Safety Costs (PSC) 2024 Outstanding Balance 421,000 Discretionary Fund Expense 250,000
Senior and Youth Program Fees 248,000→
Naming Rights Expenses 142,000
Use of StadCo Tenant Improvements 75,000
27 Subtotal Expenses $36,617,000
Stadium Authority Operating Budget
(cont.)
$36,617,000
Transfers Out:
Debt Service 17,823,000
Capital Expenditure Reserve 4,278,000
Capital Expenditure Reserve - Additional Transfers 5,666,000 Subtotal Transfers Out $27,767,000
$64,384,000
28 14
3/10/2026 Item #5
Stadium Authority Operating Budget
(cont.)
Discretionary Fund
50% of FY
2026/27 Base
Projected Non Nek ent iscretionary Poolie very PEncited Beginning Discretionary Costs Over Ending
Balance Surcharge Fund Expense Threshold Balance
$604,000 $1,097,000 ($250,000) ($582,000) $869,000
• The Discretionary Fund is projected to be used to cover NFL public safety costs above the public safety cost threshold, and other items at the Stadium Authority's discretion. The Civic Event is reflected in the FY 2025/26 Budget.
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.
30 15
3/10/2026 Item #5
Stadium Authority Operating Budget
(cont.)
Performance Rent Calculation (cont.)
Non-NFL Event Net Revenue (in millions)
$12.0
$10.2
$10 0
$8.8 $8.3
$8.0
$5.2 $6.1 $5.3 $5.2
$6.0
$4.0
$2.0
$-
-
$(2 0) $(0.5) $(0.3)
$(4 0) $(2.7)
March 2020 March 2021 March 2022
31 Stadium Authority Operating Budget
(cont.)
Performance Rent Calculation (cont.)
Fiscal Year Fiscal Year
2025/26 2026/27
Performance Rent Calculation Projection Budget
Ground Rent $ 1,000,000 $ 1,000,000
Net Non-NFL Event Revenue (Expense) 6,222,000 4,600,000 50% of Net Non-NFL Event Revenue (Expense) $ 3,111,000 $ 2,300,000 Performance Rent Credit from Ground Rent (50% of Ground Rent) (500,000) (500,000)
Subtotal $ 2,611,000 $ 1,800,000
Public Safety Credits
Other Credits N/A
Net Performance Rent paid to the City of Santa Clara $ 2,611,000 $ 1,800000 er Stadium Lease Paragraph 7.5.3(a), credited public safety costs is the amount by which public safety cos xceed the public safety costs thresho
16 3/10/2026 Item # 5
Stadium Authority Operating Budget
(cont.)
Shared Stadium Manager Expenses (cont.)
There are four (4) positions added to Security and one (1) position removed from Engineering:
• Security: FTE is increasing by 4 positions
• Supports enhanced stadium security measures. In 2025, all 24/7 security responsibilities were transitioned in-house and removed from third-party vendors. • Engineering: FTE is decreasing by net one position
• Director of Engineering role shifted from Stadium Operations to Engineering. In addition, the Principal Project Manager and Project Manager roles were reallocated from Engineering to Stadium Operations. Eliminate the Vice President of Hospitality & Retail position.
Stadium Authority Ten-Year Forecast
Excess revenues projected in each year, $17.7 million in FY 2026/27 to $10.0 million in FY2035/36
Excess revenue transfer to City's General Fund in FY 2026/27 is projected to be $4.5 million with minimal transfers in some later years Public Safety Cost 2024 Outstanding Balance paid off in FY 2026/27 Renovation/Demolition Reserve not projected to be filled in the next ten years Overall Stadium Authority Reserves increase from $105.1 million in FY2026/27 to $115.7 million in FY2035/36
Contributions to the City's General Fund include ground and performance rent, Senior and Youth Fees and Stadium Authority Excess Revenue. 34 17
3/10/2026 Item # 5
Stadium Authority Ten-Year Forecast
(cont.)
Stadium Contribution to the General Fund
(in millions)
FY26/27 FY27/28 FYZ8/29 FY29/30 FY30/31 FY31/32 FY32/33 FY33/34 FY34/35 FY35/36 Ground Rent $1.0 $1.1 $1.2
Performance Rent 2.6 1.8 1.9 0.7 1.6 1.0 1.2 0.9 0.6 1.3 Senior & Youth Fees 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 Excess Revenue 4.5 0.4 - 0.2 - -
Total GF Impact $8.4 $3.5 $3.2 $2.3 $3.0 $2.4 $2.6 $2.3 $2.1 $2.8 eduh are so i peria from nal seat analys elects potential increases in capital contributions in future years 35 Stadium Authority Debt Service Budget
FY 2026/27
Debt Type Budget
CFD Advance $3,769,000
Term A Loan $17,226,000
Total $20,995,000
• Debt service amount of $21.0 million includes principal payment of $10.8 million and interest payment of $10.2 million
• Total outstanding debt is projected to decrease to $199.0 million 36 18
3/10/2026 Item #5
Stadium Authority Debt Service Budget
(cont.)
Total Outstanding Debt (in millions)
$700
S653,4 70% reduction in
$600 outstanding debt
$561.6
rom March 2014
$500
S464.7
$429.8
$396.1 $382.7
$400
$340.2
$325.3
$300 $296.8 $280.3
S245.3 S228.7 $219.6 $209. (5199.0)
$200
$100
$41.1
7 (budget)
#Construction Loan #StadCo Agency Advance = Term B Loan a Term A Loan StadCo CFD Advance StadCo Subordinated Loan 37 Stadium Authority Capital Budget
SCSA Role and Responsibilities re: CapEx Budget
• Tenant's Exclusive Facilities (Stadium Lease 4.3.1): Includes Stadium Commercial Areas (e.g., Team Store and Hall of Fame), Tenant's Administrative Space, locker rooms and related training space, Stadium Audio/Video Facilities, Stadium Ticket Office, the Owners' Club, and the Suite Tower and all Suites (excluding any Premium Stadium Areas and Press Areas in Suite Tower).
Stadium Operations Areas (Stadium Operations Agreement 9.3 and Stadium Lease Exhibit C-2): Includes concessions, restrooms, roof, trash/recycling, storage, press box, etc.
Stadium Manager can use these areas on behalf of Tenant and Stadium Authority to facilitate their respective use of Stadium.
Stadium Authority's Obligations (Stadium Lease 7.1.1.b): Except for Capital Repairs required for Tenant Improvements, Stadium Authority as the Landlord is responsible for performing Capital Repairs in the Stadium, South Lot, Bridges, and Main Lot. The reasonable cost of such Capital Repairs shall be paid from funds available in the Stadium Capital Expenditure Reserve, Operating Expense Reserve and, if applicable, Demolition Reserve 38 Excess.
19 3/10/2026 Item #5
Stadium Authority Capital Budget
Stadium Lease Exhibit C-2
LEGEND
• Даник
Stadium Authority Capital Budget
Total Capital Budget of $21.9 million
• Stadium Improvements: $20.3 million
• New Projects: $11.1 million
• Construction ($6.6 million): LED Lighting Replacement, Fire Alarm Upgrade, Restroom Flushing Device Replacement
• Equipment ($3.4 million): Cooling Towers, Back of House Control Panels, Amplifiers & Speakers
• Contingency ($1.0 million)
• Carryover Projects: $9.3 million
• Construction ($5.1 million): Lighting Systems, Waterproofing/Caulk/Joint Replacements • Equipment ($3.3 million): Radio Booth Cabling, HVAC Boilers Exhaust Flues • Contingency ($845,000)
• Stadium Warranty-Related Construction: $1.5 million
• Outstanding projects and claims are under review, upon confirmation that no warranty work 40 is anticipated, funds can be allocated to general Stadium improvements 20 3/10/2026 Item # 5
Stadium Authority Capital Budget
(cont.)
FY2025/26 Projects
General Areas/ Coating Main Deck
41 Stadium Authority Capital Budget
(cont.)
FY2025/26 Projects
Is cast:**
Lighting Systems - Fixture Replacement of
Major Outdoor Lighting / LED Retrofit / Sports
Lighting
Plumbing Boilers
42 21
3/10/2026 Item # 5
Stadium Authority Capital Budget
(cont.)
FY2025/26 Projects
LevIs
LEVIS STADIUM
SUPER BOWL
Levi's Naming Rights Signage Refurbishment
43 Stadium Authority Capital Budget
(cont.)
FY 2026/27 Capital Expenditure Projects
• LED Lighting Replacement ($4.8 million) - replaces existing fluorescent, incandescent, and High-Intensity Discharge (HID) fixtures with LED, part of multi-phase replacement
• HVAC Boilers and Boiler Exhaust Flues ($1.0 million) - replaces boiler and/or critical boiler support components
• Back of House (BOH) Control Panels, Amplifiers & Speakers ($2.1 million) - replacement of equipment that is beyond end of life
44 3/10/2026 Item #5
2026 Marketing Plan
• The Stadium Manager submitted the 2026 Marketing Plan as part of annual Budget process.
• The Stadium Authority hired a consultant, Canyon Oaks Ventures, LLC, to conduct market trend research on how large multi-purpose venues market and promote Non-NFL Events and complete an assessment of the 2025 and 2026 Marketing Plans.
• Together, the research and review will:
• Assess current market strategies
• Provide benchmarking of stadium performance
• Identify industry trends and areas for improvements
45 2026 Marketing Plan
• Work efforts are in progress and expected to be completed in May/June 2026.
• Current agreement needs to be amended to extend the term and add additional funds to complete the two work efforts.
• Final report and recommendations will enhance the Stadium Authority's strategic oversight of the 2026 Marketing Plan, including:
• Subsequent review of the 2026 Marketing Plan outcomes • Review and analysis of future Marketing Plans and related outcomes • Help inform ongoing discussions with the Stadium Manager related to booking profitable Non-NFL Events
46 23
3/10/2026 Item #5
Stadium Authority FY2026/27 Budget
Key Summary
Net Non-NFL Events Revenue budgeted at $4.6 million
Public Safety Costs (PSC) reimbursements over threshold expenditure is budgeted to be $2.5 million
PSC 2024 Outstanding Balance ($4.9 million in FY 2025/26, $0.4 million in FY 2026/27)
Budget supports 2026 World Cup events
Direct payments to the General Fund at $7.5 million
Additional $5.7 million transfer to the CapEx fund to projects necessary to maintain the facility pending finalization of a facility condition assessment 47 Key Themes
• Proposed FY 2026-27 Budget = $79.5M
Elevated Revenues & Strong Operating and Cash Reserves = $88.7M Direct Payments to the City's General Fund = $7.5M
Challenges
Significant Capital Needs Projected
FY 26-27 Capital Request More Than Double Prior Forecast FY 27-28 and Beyond More than Triple Prior Forecast
Requires further analysis and negotiations with Stadium Manager and/or Tenant (StadCo)
48 24
3/10/2026 Item #5
Key Themes
Challenges, continued
• Not in alignment with Stadium Manager Recommendations Office Rent Request
SCSA Funding for NFL Mandated Security Enhancements
• Further Inquiry Needed on...
• Stadium Builder License Staffing
Recommendations for Capital Project Forecast
• FY 27-28 and Beyond
49 Key Themes
Next Steps
• Formally notify StadCo/ManCo of any items not approved within 10 days
• Continue to engage on FY 2027-28 Capital Projects (report back to the Board within 90 days)
• Facility Condition Assessments
Obtain Final StadCo/ManCo Facility Condition Assessment Obtain SCSA Facility Consultant
Perform SCSA Facility Condition Assessment
Peer Review StadCo/ManCo Facility Condition Assessment
Work with StadCo/ManCo to reach agreement on Stadium Capital Needs Determine funding strategies, renegotiate agreements, etc. 50 Seek SCSA Board direction/feedback (throughout process) 25 3/10/2026 Item #5
Recommendations
1. Adopt the Santa Clara Stadium Authority Fiscal Year 2026/27 Operating, Debt Service, and Capital Budget;
2. With respect to the CapEx Plan:
(a) Approve the Fiscal Year 2026/27 CapEx projects (Year One), of the Stadium Manager's 5-Year Capital Expenditure Plan, including such projects that are to be completed over Multiple Years;
(b) do not approve at this time CapEx projects to be commenced after Fiscal Year 2026/27 (Years 2 through 5); and
(c) upon completion of the Stadium Manager's FCA, Stadium Authority staff's evaluation and completion of its own FCA, and further discussions with Stadium Manager, return to the Board with staff's recommendation for Stadium Authority action on the CapEx program for Years 2 through 5;
Recommendations (cont.)
3. Note and file the 2026 Levi's Stadium Marketing Plan;
4. Authorize the Executive Director to amend the Agreement with Canyon Oaks Ventures, LLC to extend the term through December 31, 2026, and increase the not-to-exceed amount up to $130,000, as needed, to complete the described scope of work for a Stadium Non-NFL Event Marketing Plan Review and Market Trend Analysis;
5. Adopt the Stadium Authority Board Budget Policy; and
6. Adopt the Stadium Authority Board Compliance and Management Policy. 26 3/10/2026 Item # 5
Santa Clara Stadium
Authority
Public Hearing
Action on the Proposed Santa Clara Stadium Authority FY 2026/27 Budget, and Compliance and Management
Policies, and 2026 Marketing Plan
Item #5 (26-45)
SCSA March 10, 2026
SANTA CLARA STADIUME AUTHORITE
Stadium Authority Exhibit J Comparison
Santa Clara Stadium Authority
10-Year Forecast Comparison with Rent Arbitration Exhibit J General Fund Impact
(In millons)
Fiscal Year 2014/16 201618 201g17 201718 201849 2019/20220202223 202324 202425 202626 202627 Levia Stadium Year of Operations Totais
Original Lease Exhibit J
Ground Rent - Base 3 2400 $ 2265 $ 0250 $ 2385 3 s 0.460 $ 0495 $ 6.376 Ground Rent - Performance 35.858
Senior/Youth Fee 2.990
Excess Revenuo
Original Lease Exhibit J Totais 5 2520 32012 G 2007 S0104 S 3204 5 7306 3 341D $ 3.517 5 3627 S - 3,739 S 4,090 $ 4101 $ 4294 $ 45.221 S 0180 $ 0215 $ 0250 S 0285 5
Ground Rent - Performance 2509
Sensor Youth Fee 0 239
Excess Revenue
Actuals Budgeted 5 2928 5 3386 S 3013 S 2.945 0 605s 0.390 $ 0.051 3 4385 $ 3896 $ 12.026 5 8,790 7.624 $ 61,600 Comparson
Ground Rent - Base
Ground Rirt. Performance (9.120)
Senior/Youth Fee (0.019)
Excess Revenue 16.618
Actuais/Budgeted Higher(Lower) than Exhibit JS 0.108 0474 5 0.006 (0.155) 5 (3.020) S (2.856) 5 S 6,379 FY 202021 & 2021/22 Perermance Rect and SerupYouth Fee impacted by COVID-19 Pandemic 54 27
3/10/2026 Item #5
STADIUME
LeVIS
LeVI'S
STADIUM
SCSA FY26/27 Budget
March 2026
01 The City's general fund has already received
revenue that exceeds the fair market value of
the stadium land.
02 Non-NFL Event Revenue continues to excee
original forecasts
The latest consultant evaluation of the Non-NFL
AGENDA 03 Event Marketing Plan is overdue, over budget
and is not a valid reason to delay approval of
the FY26/27 Marketing Plan.
The recommendation by SCSA Staff to delay
04 approval of the FY26/27 5-Year Capital
Expenditure Plan is a mistake. We have a
compromise proposal
Levis © 2026
2 POST MEETING MATERIAL
1 3/10/2026 Item #5
FAIR MARKET RENT FOR CITY LAND
3 FAIR MARKET RENT FOR CITY LAND
...
comply with Mcare ad Sentiso 1720.020 or Une City Municipal Catt, el so particular the 'iny Council herety finals road detaines thal hand on the lumation mraced to Keyar Maran in uhas acru iport tilled lipsed Locale Evaluation of fair Market As required by Measure J, On 2.28.12 The Santa Clara City Council Kers for use Station Sile, What ihe portermanne has nond aad fiend rol net for in the approved Resolution 12-7909 confirming their determination that the Clin lie in yes pride a falmarket est the Cas
Ground Lease was projected to provide fair market rent for the City land.
AYES: Gilmer, Kished Maten and Moore and
The City's land valuation, prepared by Keyser Marston (KMA), conclude COUNCH ORS: Konikaty and MiLoral the land value "could be nearly" $14.5M (cash), and $21.5M (grounc CONCHIONS: Nime
ASTANEI COUSCILORS
lease).
ATRESSTE
KMA concluded that the projected Base Rent and Performance Based Rent (PBR) under the Ground Lease had a net present value (NPV) in 2012 of $34M. the not market value could be nearly $145 M, with an open market rand of about 5115M per year al en 8% lease rate Such annual ront aquates to a net present valuo of $21.5 mallion (applying a 6% discount rato) assuming escalation In Over the 40 year lease term, the projected Base Rent NPV was STOM, ground rent approximalety every five years and a 40 year lease term for consistency of and the PBR was $24M, indicating that only $11.5M of PBR was needed compartson to the proposed stadium ground lease in order for the City to achieve the $21.5M FMV. IL. Conclusion Based on the economic analysis deinealed in tus document, Fused Ground Rent generated by the Stadium Authorty Lease will quate lo a net present value of $10 milion (rounded), and Performance Bursed Rert Is projected to have a net present value of 324 million Altemutively, i is projected that the site could achine a not present value of S21 5 milion It pleced on the open markel. Therefore only $11.5 milton (48%) of the 524 milion projected Performance Based Rent from the Stadium Lease needs to be Levisy acheved to match the ground rent achievable in the open market (311.5 million STADIUM Performance plus 310 millon fored or $21.5 mision total equals the Open Market Rent). 4 2
3/10/2026 Item #5
Payments to City as of Payments to City FY14-FY25 ($000s) FY25/26F Excess
Performance Total to City
Year Base Rent Revenues to
Based Rent General Fund
GF
2012
Through FY25/26, the City's General Fund has already
2013
received $41.8M, with an NPV of $28.1M - compared to the 2014 180 2,509 2,689
land FMV of $21.5M (excluding the Youth and Senior sports 2015 215 2.937 3. 152
fees of ~$2.5M).
2016 250 2,533 2,783
2017 285 2.439 2,724
The City has already received fair market value for its 2018 320 320
land, and we are only in year 12 of a 40 year lease. 2019 355 355 2020 390 390
Discount Rate of 4%: 2021 425 425
In considering the NPV of that $41.8M, it's important 2022 460 4.175 4,635 to put ourselves back in February 2012 when the City 2023 495 3.150 3,645 Council made its FMV finding. 2024 1,000 4 582 6 165 11,747 2025F 1,000 2611 5 305 8,916
• In 2012 there was uncertainty as to the amounts and
timing of future cash flows. But now, with perfect Total $ 5,375 $ 24,936 S 11.471 $ 41781 hindsight, that uncertainty has been eliminated,
which means a lower discount rate is appropriate. Discount rate 4% 4% 4% • In 2012, the "risk free" interest rate (e.g. the 10-year NPV @ Feb'12 $ 3,624 $ 17,690 $ 6,766 $ 28,080 treasury rate) was ~2%. We used a 4% discount rate
in this calculation to be conservative.
LevIs
STADIUM
5 NON-NFL EVENT REVENUES
6 3
3/10/2026 Item #5
Non-NFL Revenue Continues
KMA Projections vs. Actuals (in $000s)
to Exceed Forecast
KMA Projections Actuals
NNE
Fiscal NNE Profit NNE Profit Surcharge Totals +/(-)
Despite claims to the contrary, Non-NFL Revenue 2014 4,960 5,208 834 6,042 1,082 continues to be strong. 2015 5,109 6,079 3,053 9,132 4,024 2016 5,262 5,317 2,351 7,668 2,405
For the past four years, NNE Revenue has 2017 5,420 5,163 1,537 6,700 1,281 exceeded the KMA forecast by ~60% on average. 19 1,593 1,611 (3,971) 2018 5,583
Critics often selectively omit several key factors: 2019 5,750 (2,741) 735 (2,006) (7,756) 2020 5,922 (510) (510) (6,432)
: (6,387)
• Non-NFL Ticket Surcharge collected for the 2021 6,100 (286) (286) SCSA is a major revenue source 2022 6,283 8,809 1,280 10,089 3,806 2023 6,472 8,287 1,593 9,860 3,388
• Two years of COVID - no events. 2024 6,666 10,184 1,394 11,558 4,892 2025F 6,868 6,222 4,097 10,318 3,452
• Skyrocketing Public Safety Costs have
crushed NNE profits - they are 2X Totals 70,392 51,710 18,467 70,176 (216) comparable venues. At Levi's Stadium, PSC Totals Excluding is the second largest event expense - right COVID 58,370 62,506 18,467 70,972 12,603 behind the cost of performers.
© 2026
STADIUM
FY26 MARKETING PLAN
3/10/2026 Item #5
NNE MARKETING CONSULTANT
Tave preet is prove 5s over the original budget, and two years behind schedule. This is an example of the delays and cost overruns we Mar 24 Jul 24 Mar '25 Dec '26 Recommendation
SCSA issued an RFP for SCSA did NOT approve Staff is now requesting the Marketing Plan. The an extension to the
Canyon Oaks contract
chrough 12.31.26, and al
exceed $20K, and the increase in the cost to
eport was due 8/29/24
BOWL CHAMPIONS
APPROVAL FOR CAPEX REQUIRED
10 5
3/10/2026 Item #5
SCSA Staff's Recommendation to Disapprove the Capital
Expenditure Plan is a Mistake
The 5-Year plan is an integral component of the overall Capital Expenditure Plan. It allows the Stadium Manager to plan anc repare for future capital projects, within the context of a busy event schedule at Levis Stadium StadCo and the SCA are both required to either approve the plan, or they have 45-days to provide detailed comments on individual items they disapprove. (Lease 10.4.1).
The pr Start overly otimistic in their estimated time for reviewing/competing an A 2326 is unreat des not make sense.
Event schedule dictates project schedule - typically April to June.
Delaying capital projects means important systems will "run to failure," likely requiring expensive emergency repairs.
Examples of capital projects that SCSA will disapprove under Staff's recommendation:
Project Name Sub category 2026* 2027 2028 2029 2030 Totals ADA Platforms Seating Bowl $0 $1,500,000 $0 $0 $0 $1,500,000 Wayfinding Signs Wayfinding and other Code Signage $0 $1,238,036 $0 $0 SO $1,238,036 Steel Coatings Structural Steel Coatings $0 $0 $963,406 $1.970,525 $0 $2,933,931 Window Gasket Replacement Doors & Windows $0 $658,944 $0 $0 $0 $658,944 [TOTALS $0 $3,396,980 5963,406$1,970,525 $0 $6,330.911
© 2026. 11
STADIUM
11 01 SCSA and StadCo approve the Capital
Expenditure Plan for FY26/27 and modified
plan for FY27/28.
02 consideration of the remaining Capital Plar
or FY27/28 brought back to council for vot
within 90 days.
COMPROMISE 03
LeviS © 2026 12
12 6
3/10/2026 Item #5
COMPROMISE PROPOSAL SUMMARY
A summary of the Staff recommendation (approved capex for FY26/27 + multi-year projects) and compromise plan for FY27/28 approval (additional $5.7M) is below.
Further details follow on the next page.
2026 2027 2028 2029 2030 Total
Carry forwards from FY25/26 $10,333,804 $10,333,804
New Projects for FY26/27 $10,008,271 $10,008,271
Multi-Year Projects begun FY26/27 $4,366,208 $5,120,451 $3,746,649 $280,800 $13,514,109 Remaining FY27/28 Projects $5,755,371 $O $0 $5,755,371
Total S20,342,075 $10,121,579 $5,120,451 $3,746,649 $280,800 539,611,554 Levia © 2026
STADIUM
13 FY27/28 Approval Detail & Discussion
FY27/28 Projects to be Approved FY27/28 Projects to be Discussed Artistural FY27 Project Name Category FY27
$1,500,000 Premium Areas Architectural $2,410,116
Compresso Architectural $114,950 Swisspeart Exterior Panel System Building Envelope $500,000 er Syster Architectural $410,107 Totals $2.910,116
Replace Furniture - First Aid Hospital Bed: Architectural $68,970 Seismic Joints Architectural $369,096
Architectural $131,234
Trench Drain Replacement Architectural $118,111
Wayfinding Signs Architectural $1,238,036
Ceilings - Grid or Metal Outdoor Stadium Building Envelope $143,688 Exterior Facing Fixed Glazing Building Envelope $147,963 Window Gasket Replacement Building Envelope $658,944
Backflow Preventers repair/replace as needed Building Systems $57,475 Condenser Water systems and VAV wet units Building Systems $114,950 Elevator Modemization Building Systems $287,375
Heat Exchanger Building Systems $114,950
Irrigation - Interior field and roof garden pumps
and piping Building Systems $22,991
Surveillance - Command Center Equip Building Systems $114,95 Kawasaki ATVS Public Safety $53,000
Backbone Fiber Optics Technology S88,583
Totals $5,755,371]
Revis © 2026 14
STADIUM
14 7
3/10/2026 Item #5
THANK YOU
15