REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on the Santa Clara Stadium Authority Financial Status Report for Quarter Ending December 31, 2019 [Board Pillars: Ensure Compliance with Measure J and Manage Levi’s Stadium & Enhance Community Engagement and Transparency]
Report
BACKGROUND
In Fiscal Year 2014/15 the Stadium Authority Board (“Board”) requested that staff prepare quarterly Santa Clara Stadium Authority (“Stadium Authority”) Financial Status Reports. These reports provide an update on the events held at Levi’s Stadium, Stadium Authority finances, and the impact of Stadium Authority activity on the City of Santa Clara’s (“City”).
This report is to provide information covering the Stadium Authority’s third (October 1, 2019 - December 31, 2019) quarter of the 2019/20 fiscal year.
The Adopted Stadium Authority Budget incorporates the estimated revenues and expenses for all Stadium Authority funds. The attached Financial Status Report provides the budget to actual revenue and expense summaries for the operating, debt service, and capital funds. Analysis of the financial activity through the fiscal year measures the adherence to the budget and allows the Stadium Authority to monitor and project revenues and expenses. Any significant variances are explained in the reports.
DISCUSSION
The attached financial status report provides information covering the Stadium Authority’s third (October 1, 2019 -December 31, 2019) quarter of the 2019/20 fiscal year. The reports summarize National Football League (“NFL”) and non-NFL event activity at Levi’s Stadium and describes the financial impact of these events on the Stadium Authority and City since FY 2014/15.
NFL Event Revenue and Expenses
Levi’s Stadium hosted ten NFL games in the first three quarters of FY 2019/20 with a total of 662,731 tickets sold. This resulted in $8.4 million in NFL ticket surcharge for the Stadium Authority and $232,000 of Senior and Youth Program Fees for the City. Public safety costs for NFL games totaled $3.7 million which is 24% higher than the prior fiscal year due to increases in negotiated salary and benefits costs for the various agencies providing public safety services as well as City costs for providing the appropriate level of public safety services for each game. The Tasman lot parking fee also generated $29,000 for the City’s General Fund.
Non-NFL Event Revenue and Expenses
The Stadium Authority held eight ticketed Non-NFL event and 64 special events which are detailed in the report. The Non-NFL event ticket sales generated $735,000 in ticket surcharge revenue, half of which funded the discretionary fund. Public safety costs for these events totaled $1.6 million, of which $98,000 was offset by the parking fees. The remaining $1.46 million was invoiced to ManagementCo, of which $794,000 has been reimbursed to the City as of the end of March 2020. There is an outstanding balance of $666,000 for public safety costs related to Non-NFL events held in FY 2019/20, and ManagementCo. is aware of it.
The table below summarizes ticketed Non-NFL Event revenue and expenditures by event through the third quarter. This table shows that six of the eight events operated at a loss or did not make any money. The inclusion of this information is to provide a greater level of transparency and provide the overall financial results of the Non-NFL events. It should be noted, however, the financial information provided in the table is draft and subject to change as additional revenue and/or expenditures are recorded. Final performance for the fourth quarter will be presented to the Board at a later date.
Table 1
When combining ticketed and non-ticketed Non-NFL Revenue to date, Table 2 below shows approximately $403,000 in net revenue. It should be noted, however, the financial information provided in Table 1 and 2 are draft and subject to change as additional revenue and/or expenditures are recorded. Final performance for the fourth quarter will be presented to the Board at a later date.
Table 2
Stadium Builder Licenses (“SBLs”)
SBLs account for 35% of the Stadium Authority’s annual budgeted revenue in FY 2019/20. SBL proceeds through the third quarter amounted to $10.4 million, 41% of what was budgeted. There is a total of 59,647 currently active SBLs which is 91% of the 65,879 total sellable SBL seats. The value of these SBLs amounts to $528 million of which $441.7 million has already been collected.
Stadium Authority Budgets
The detailed analysis of Stadium Authority budget to actual financials is provided in the attached Financial Status Report. In summary, total operating revenues were $42.7 million representing 58% of the overall budget for revenues and total operating expenses were $29.6 million or 40% of the budget. The debt service fund was able to pay down $14.4 million in debt, bringing total Stadium Authority debt down to $325.8 million. Lastly, capital expenses amounted to $61,000 or <1% of the $14.2 million budget.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
Costs associated with the regular preparation of this report are included in the Stadium Authority Operating Budget.
COORDINATION
This report was coordinated with the Stadium Manager per section 4.6 of the Management Agreement as well as the Stadium Authority Counsel’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
Note and file the Santa Clara Stadium Authority Financial Status Report for the Quarter Ending December 31, 2019.
Staff
Reviewed by: Kenn Lee, Treasurer
Approved by: Deanna J. Santana, Executive Director
ATTACHMENTS
1. SCSA Financial Status Report for the Quarter Ending December 31, 2019