The Silicon Valley Voice

Power To Your Voice

Levi’s Stadium Budget Shows Net Gain for Non-NFL Events

Levi’s Stadium will turn a profit for non-NFL events for the first time in three years.

With three concerts already scheduled, the Stadium Authority Board treasurer expects the stadium to see $250,000 in revenue for the 2022-23 fiscal year. This projection is based on documents received by the Board from the Forty-Niners Management Company (ManCo) back in January and presented at Tuesday night’s special meeting as part of the stadium budget.

Discussion of the budget and related items for the upcoming fiscal year was the lone item on the agenda Tuesday night. Despite the net positive revenue, the profit is not enough to add any money to the City’s coffers.


Performance rent, along with ground rent and senior and youth program fees all go to the City’s general fund, but performance rent — calculated using a formula tied to ground rent — is not projected to be high enough to net the general fund any revenue. The other two sources are slated to contribute $460,000 and $237,000 respectively.

Just as in previous years, Kenn Lee, the Board’s treasurer, told the Board that the Stadium Authority is maintaining $10.5 million in legal contingency because of ongoing litigation between the Board and the 49ers. Similarly, Lee said, ManCo’s work on the budget does not waive the Board’s termination of the management agreement.

Revenue, Expenses And Capital Expenditures

The $93 million budget for the upcoming fiscal year — which needs to be approved and submitted by March 21 — includes more than 7 additional full-time positions, spread across roughly 30 City employees, amounting to $2.1 million. Lee estimates another $1.3 million for additional legal support.

ManCo is proposing the addition of six additional positions: stadium operations and logistics coordinator, procurement contracts administrator, associate and senior counsel, director of engineering and a guest services coordinator.

The budget accounts for $9.4 million in new construction and public safety costs next year, which includes repadding the seats in the stadium and aesthetic upgrades to premium areas of the stadium.

Debt Service

The Board also continues to whittle the debt on Levi’s Stadium. With the 2022-23 budget, the Board will have paid another $43 million toward its debt on the stadium, $29.5 million of which goes to the principal.

Since March 2014, the Board has paid 62 percent of the debt, reducing it this fiscal year from $279 million to $249.5 million.

Marketing Plan

Additionally, the agenda item included approval of a marketing plan for the stadium, something that has been a sticking point with the Board for several years. The Board went so far as to hire a consultant, Stone Planning, to assess and provide strategies for a marketing plan.

Last month, Stone Planning presented its findings to the Board, which in turn directed the consultant to ManCo to help put the plan in place. However, Ruth Shikada, Assistant City Manager, told the Board that Stone Planning’s scope of work did not include working with ManCo to bring the plan to life.

“We found, after that Board meeting, that staff did not have authority, really, to modify the contract,” Shikada said.  “The scope of the contract was complete, and the funds were exhausted. So, we would need to come back to the Board to amend the agreement if, in fact, the Board wants to continue to provide accessibility of the consultant to the stadium manager.”

ManCo has not approved the marketing plan. If the stadium manager deems changes necessary, Shikada said he should return within four to six months to request changes. The Stadium Authority Board failed to approve allocating an additional $10,000 to have Stone Planning work with ManCo on the marketing plan.

The Board unanimously approved the Budget and related amendments. Board Members Anthony Becker, Karen Hardy, Kevin Park and Raj Chahal voted against allocating the money to Stone Planning.

The next regularly scheduled meeting is Tuesday, March 22, in the Council Chambers at City Hall, 1500 Warburton Ave. in Santa Clara.

Members of the public can participate in the City Council meetings on Zoom at; Meeting ID: 997-0675-9306 or call 1(669) 900-6833, via the City’s eComment (available during the meeting) or by email to


Leave a Comment

Your email address will not be published.


You may like