REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on the Santa Clara Stadium Authority Financial Status Report for Quarter Ending December 31, 2025 and Approve Related Budget Amendments
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 provides information covering the Stadium Authority’s third quarter of the 2025/26 fiscal year (“FY”), which runs from October 1, 2025 - December 31, 2025.
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 quarter (October 1, 2025 - December 31, 2025) of FY 2025/26. The report summarizes 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. The report also 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 report.
NFL Event Revenue and Expenses
There were nine NFL games held in the third quarter of FY 2025/26. Levi’s® Stadium hosted two pre-season NFL games of the 2025 season on August 9th and 23rd and seven regular NFL season games of the 2025 season which are detailed in the report. This resulted in $14.2 million in NFL ticket surcharge for the Stadium Authority and $248,000 of Senior and Youth Program Fees for the City. Public safety costs for NFL games totaled an estimated $5.5 million which will be fully reimbursed to the City by a combination of payments from ManCo and offsite parking fees that were collected.
Non-NFL Event Revenue and Expenses
There were eight ticketed Non-NFL events and 36 special events which are detailed in the report. The eight ticketed Non-NFL events generated an average net revenue of $871,000 per event. Table 1 below summarizes revenues and expenditures for the eight ticketed events.
Table 1
The Non-NFL event ticket sales generated $1.8 million in base ticket surcharge revenue from the $4 per ticket base surcharge for this period. One half of the base Non-NFL ticket surcharge was deposited into the discretionary fund in accordance with Section 12.1 of the Stadium Lease, with the remaining half being accounted for as general Stadium revenues. As part of the Buffet and Public Safety Cost Settlement Agreement, the Non-NFL Ticket Surcharge was increased to a minimum of $8 per ticket. Proceeds collected in excess of the $4 base Non-NFL ticket surcharge generated $2.6 million in additional Non-NFL ticket surcharge and was deposited in the public safety cost reserve. Public safety costs for these events totaled an estimated $4.6 million. The City will be fully reimbursed by a combination of payments from ManCo on behalf of the Stadium Authority and offsite parking fees that were collected.
When combining ticketed and non-ticketed Non-NFL revenues to date, Table 2 below shows approximately $7.8 million in net revenue (excluding surcharge revenue) through the end of the third quarter. This is a decrease of $2.3 million from the prior year’s Non-NFL event net revenue of $10.1 million for the quarter. It should be noted the financial information provided are preliminary numbers and subject to change as additional revenues and/or expenditures are recorded.
Table 2
Levi’s Stadium
Net Revenue for Non-NFL Events
by Event Type
Historical Year-to-Date Through December 31, 2025
(1) Other Operating Income is income not attributable to a specific event. Examples are interest income and reimbursements unrelated to a specific event.
(2) Other Operating Expenses are expenses not attributable to a specific event. Examples are event selling expenses, administrative expenses and miscellaneous costs.
(3) Net Revenue from Non-NFL Events does not include Non-NFL Event Ticket Surcharge.
Stadium Builder Licenses (“SBLs”)
SBLs account for 7.7% of the Stadium Authority’s annual budgeted revenue in FY 2025/26. There is a total of 67,495 currently active SBLs. Through the third quarter, since inception, the value of the active SBLs amount to $561.3 million of which $535.9 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 $49.6 million representing 74% of the overall budget for revenues and total operating expenses were $19.6 million or 49% of the budget. The debt service fund was able to pay down $9.4 million in debt, bringing total Stadium Authority debt down to $210.2 million. Capital expenses were $8.4 million representing 39% of the overall CIP budget.
FY 2025/26 Stadium Authority Budget Adjustments
From time to time, budget adjustments may be necessary to align revenues or expenditures to actual or unexpected activity during the course of a fiscal year, known after the adoption of the Stadium Authority Budget. On March 11, 2025, the Stadium Authority Board adopted the Santa Clara Stadium Authority FY 2025/26 Operating, Debt Service, and Capital Budget. As of the timing of the publication of this report, additional information from FY 2025/26 has resulted in recommended budget adjustments as follows:
Operating Budget:
1) NFL Ticket Surcharge: The Forty Niners Football Company, LLC collects a 10% ticket surcharge on the price of admission to all NFL games held at Levi’s® Stadium on behalf of the Stadium Authority. The Stadium Authority is projected to receive $1.1 million more NFL Ticket Surcharge revenue than budgeted due to higher ticket prices and more tickets sold than budgeted. Therefore, a budget adjustment of $1.1 million is needed to reflect the increase in revenue.
2) SBL Proceeds: Cash collected from annual payments from SBL holders on a payment plan and payment from sales on new SBLs and/or SBLs that were defaulted make up SBL proceeds. The Stadium Manager projects $6.7 million of SBL proceeds will be collected in the current year, $1.6 million more than the current budget due to higher re-sale activity than originally projected, therefore a budget amendment of $1.6 million is needed to reflect the increase in revenue.
3) Interest: The Stadium Authority was maintaining a higher bank balance than anticipated over the first three quarters of the fiscal year since spending on CapEx projects has been lower than budgeted and bank interest rates were higher than projected. The Stadium Authority projects $5 million in interest revenue, $1.6 million more than budgeted. A budget amendment of $1.6 million is needed to reflect the increase in revenue.
4) Net Revenues from Non-NFL Events: The Stadium Manager is responsible for booking and scheduling all Non-NFL events on behalf of the Stadium Authority. As required by the Stadium Management Agreement, Stadium Manager is also required to maintain complete and accurate books and records related to the net income from Non-NFL events. The Stadium Manager projects $6.2 million of net revenue from Non-NFL events will be collected, $922,000 more than the current budget, therefore, a budget amendment of $922,000 is needed to reflect the increase in revenue.
5) Senior and Youth Program Fees Revenue: Super Bowl LX was held at Levi’s Stadium resulting in the collection of additional Senior and Youth Program Fees (based on $0.40 per ticket up to the maximum of $300,000). It is projected that the Stadium Authority will collect $300,000 of Senior and Youth Program Fees which is $30,000 higher than budget. A budget amendment is needed to reflect the increase in revenue.
6) Shared Stadium Manager Expenses-Stadium Operations: Based on information provided by the Stadium Manager, projected actuals for FY 2025/26 Stadium Operation expenses are anticipated to be lower than budgeted due to cost savings. A budget adjustment is needed to reflect the decrease in Stadium Operations expense of $350,000.
7) Shared Stadium Manager Expenses-Engineering: Based on information provided by the Stadium Manager, projected actuals for FY 2025/26 Engineering expenses are anticipated to be higher than budgeted due to increased personnel and maintenance costs. A budget adjustment is needed to reflect the increase in Engineering expense of $300,000.
8) Shared Stadium Manager Expenses-Guest Services: Based on information provided by the Stadium Manager, projected actuals for FY 2025/26 Guest Services expenses are anticipated to be lower than budgeted due to cost savings. A budget adjustment is needed to reflect the decrease in Guest Services expense of $10,000.
9) Shared Stadium Manager Expenses-Groundskeeping: Based on information provided by the Stadium Manager, projected actuals for FY 2025/26 Groundskeeping expenses are anticipated to be lower than budgeted, primarily driven by only one field replacement needed in FY 2025/26. A budget adjustment is needed to reflect the decrease in Groundskeeping expense of $150,000.
10) Shared Stadium Manager Expenses-Security: Based on information provided by the Stadium Manager, projected actuals for FY 2025/26 Security expenses are anticipated to be higher than budgeted, primarily driven by stadium security enhancements. A budget adjustment is needed to reflect the increase in Security expense of $180,000.
11) Buffet Costs: In FY 2025/26, the complimentary buffet cost due to StadCo totals $927,000 for the NFL season or $92,700 per NFL game. The Stadium Authority has the option to request StadCo to track buffet expenses and provide detailed accounting records at the Stadium Authority’s expense. This fee is calculated at 5% of the annual buffet cost. The Stadium Authority has elected this service for FY 2025/26, therefore, a budget amendment of $47,000 is needed to reflect the additional cost for the buffet accounting fee.
12) Senior and Youth Program Fees (paid to the City): Super Bowl LX was held at Levi’s Stadium resulting in the collection of additional Senior and Youth Program Fees (based on $0.40 per ticket up to the maximum of $300,000). It is projected that the Stadium Authority will collect $300,000 of Senior and Youth Program Fees which is $30,000 higher than budget. A budget amendment is needed to reflect the increase in the payment to the City’s General Fund by $30,000.
13) Performance Rent: The Performance-Based rent owed to the City is described in the Ground Lease and the Amended and Restated Stadium Lease. As outlined in the agreements, the City can receive Performance-Based rent for each Lease Year equal to 50% of net revenue from Non-NFL events less the sum of the Performance-Based Rent Credits. Performance-Based Rent was budgeted at $2.2 million for FY 2025/26. Non-NFL event net revenue is projected to be higher than budgeted resulting in an increase to Performance-Based rent owed to the City of $461,000. Therefore, a budget amendment of $461,000 is needed to reflect this increase.
14) Public Safety Cost (PSC) Over Threshold: Due to the 2024 Settlement Agreement, the public safety cost threshold in FY 2025/26 will equal $374,400 per game. Based on projected actual NFL public safety costs, it is estimated that the public safety costs over the threshold will total $2,560,000, which is $417,000 more than the current budget. This amount will be paid with the public safety cost reserve so that there are no impacts to the Performance Based Rent paid to the City. A budget adjustment of $417,000 is needed to reflect the payment of PSC over threshold totaling $2,560,000.
15) PSC 2024 Outstanding Balance: As part of the 2024 Settlement Agreement, public safety costs over the threshold for FY 2017/18 to FY 2023/24 amounting to approximately $14.8 million were redefined as “PSC 2024 Outstanding Balance.” Based on projected revenues and expenses, it is anticipated that $4.9 million will be available to pay down the PSC 2024 Outstanding Balance. This represents $1.6 million more in excess revenues than is currently in budget. Therefore, a budget adjustment of $1.6 million is needed to reflect the payment toward the PSC 2024 Outstanding Balance.
16) Transfer to City General Fund from Excess Revenues: Under the 2024 Settlement Agreement the terms of the Stadium Lease has been amended, restructuring the distribution of excess revenues originally to be deposited to the Renovation/Demolition Reserve to instead allocate 25% to the City’s General Fund. The transfer of $3.3 million in excess revenues to the City’s General Fund is budgeted for FY 2025/26. Based on projected actuals, $4.9 million is expected to be transferred to the City’s General Fund. Therefore, a budget amendment of $1.6 million is needed to reflect the increased payment.
17) Ending Fund Balance - Public Safety Cost Reserve: Due to the 2024 Settlement Agreement, the public safety cost threshold in FY 2025/26 is $374,400 per game. Based on projected actual NFL public safety costs, it is estimated that the public safety costs over the threshold will be $417,000 more than the current budget. This amount will be paid with the public safety cost reserve so that there are no impacts to the Performance Based Rent paid to the City. A budget adjustment of $417,000 is needed to reflect the decrease to the Public Safety Cost Reserve.
18) Ending Fund Balance - Renovation/Demolition Reserve: Due to the 2024 Settlement Agreement, excess revenues that would fund the renovation/ demolition reserve will receive 50% of the remaining revenues. Of the remaining 50%, half will go toward paying off the PSC 2024 Outstanding Balance, and the other half will be distributed to the City’s General Fund. Based on anticipated excess revenues, the Ending Fund Balance - Renovation/Demolition Reserve is expected to be $53.6 million, an increase of $3.2 million from budget. Therefore, a budget amendment of $3.2 million is needed to reflect the increase in the Ending Fund Balance Renovation/Demolition Reserve.
19) Ending Fund Balance - Stadium Funding Trust Reserve: The Stadium Funding Trust Reserve is required to have sufficient funds to cover the stadium’s operating and maintenance expenses for the first three months of the following fiscal year. Based on projected expenses for the first three months of FY 2026/27 the Ending Fund Balance - Stadium Funding Trust Reserve is anticipated to increase by $199,000, therefore, a $199,000 budget amendment is needed to reflect the increase in the reserve.
20) Ending Fund Balance - Unrestricted: The Ending Fund Balance - Unrestricted is anticipated to decrease by $1.9 million due to the actions taken above. A budget amendment of $1.9 million is needed to reflect the decrease in the Ending Fund Balance - Unrestricted.
Capital Budget:
1) Livescan Equipment: This project funds the purchase of a new monitor and hardware for fingerprinting equipment at the stadium’s temporary holding facility. The upgraded system is necessary to be compatible with the Santa Clara County’s updated booking system. The total project cost, including applicable sales tax, is $17,000. Staff is requesting a budget amendment to increase the project allocation from $15,000 to $17,000, an increase of $2,000, to fully fund the purchase.
2) Kawasaki ATVs and Kimtek Pump Module: This project replaces two John Deere Gators (utility vehicles) purchased in 2015 that are at the end of the 10-year useful life. The fire pump module will provide fire suppression capabilities for parking lot vehicles. Due to unanticipated costs associated with upgrading the ATV springs to safely support the added weight of the installed water tank and pump, staff is requesting approval to reallocate $500 from the existing Kawasaki ATV project budget to the Kawasaki ATV with Kimtek Pump Module project.
3) Ending Fund Balance: The Ending Fund Balance is anticipated to decrease by $2,000 due to the actions taken above. A budget amendment of $2,000 is needed to reflect the decrease in the Ending Fund Balance - Unrestricted.
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)(5) in that it is an administrative activity that will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT
The Stadium Authority FY 2025/26 budget appropriation is maintained at the fund level. At the end of the third quarter of FY 2025/26, spend has been within budget.
From time to time, budget adjustments are necessary to reflect new information and align budgets with actual revenues and expenses. Attachment 2 summarizes adjustments to the FY 2025/26 Operating and Capital Budget based on updated FY 2025/26 projected actuals, reflecting revenue increases as well as both increases and decreases in expenses, as noted above.
COORDINATION
This report was coordinated with the Stadium Manager per Section 4.6 of the Management Agreement between Stadium Authority, Stadium Manager, and StadCo, as well as the Executive Director’s and Stadium Authority Counsel’s Offices.
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 or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Note and file the Santa Clara Stadium Authority Financial Status Report for the Quarter Ending December 31, 2025; and
2. Approve the FY 2025/26 Budget Amendments in the Operating Budget in the aggregate amount of $5,239,000 to reflect changes in projected revenues and expenses, and amendments to the Capital Budget in the aggregate amount of $2,000 to increase and reallocate project expenses, offset by a reduction in Ending Fund Balance, all as more specifically provided in Attachment 2.
Staff
Reviewed by: Kenn Lee, Treasurer
Approved by: Jovan D. Grogan, Executive Director
ATTACHMENTS
1. SCSA Financial Status Report for the Quarter Ending December 31, 2025
2. FY 2025/26 Budget Amendments