REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on the Santa Clara Stadium Authority Financial Status Report for Quarter Ending June 30, 2026 and to 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 (City).
This report provides information covering the Stadium Authority’s first quarter of the 2026/27 fiscal year (FY), which runs from April 1, 2026 to June 30, 2026.
The Adopted Stadium Authority Budget incorporates the estimated revenues and expenses for all Stadium Authority funds. As a part of the Stadium Authority policy to ensure adherence to the budget, a budget/encumbrance control system is used to ensure proper budgetary control. Budgetary appropriation control for expenditures is maintained at the fund level. The attached Financial Status Report provides the budget to actual revenue and expense summaries for the operating, debt service, and capital funds. Analysis of 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.
DISCUSSION
The attached financial status report provides information covering the Stadium Authority’s first quarter (April 1, 2026 - June 30, 2026) of FY 2026/27. 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 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 no NFL games held in the first quarter of the FY 2026/27. Levi’s® Stadium hosted the first 49ers pre-season game of the 2026 season on August 13, 2026, which will be included in the report for the second quarter.
Non-NFL Event Revenue and Expenses
There were no large-scale ticketed Non-NFL events and four special events during the first quarter of FY 2026/27, which are detailed in the report. During the quarter, Levi’s® Stadium hosted five FIFA World Cup 2026 (FWC26) matches. These matches generated approximately $1.7 million in Non-NFL event ticket surcharge based on a $6 per ticket surcharge described in the FIFA World Cup 2026 Assignment and Assumption Agreement. Based on the First Amendment to Amended and Restated Stadium Lease Agreement, half of the $4 per ticket base ticket surcharge, (or $2 per ticket) will be deposited into the Discretionary Fund and the amount over the base ticket surcharge (or $2 per ticket) will be deposited into the Public Safety Cost Reserve. These revenues are reflected in the Operating Budget Status Report in Attachment 1.
When combining ticketed and non-ticketed Non-NFL revenues to date, Table 1 below shows approximately $296,000 in net revenue (excluding surcharge revenue) through the end of the first quarter. This is a decrease of $1.9 million from the prior year’s Non-NFL event net revenue of $2.2 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. It should also be noted that subsequent to the conclusion of the FIFA World Cup events, the stadium has 10 booked ticketed event days, which indicate a strong overall activity for the fiscal year. The Stadium is on track to host twenty-five (25) ticketed events this fiscal year, a record number for the venue. Results from these events will be reported in subsequent quarterly reports.
Table 1
Levi’s Stadium
Net Revenue for Non-NFL Events
by Event Type
Historical Year-to-Date Through June 30, 2026
(1) Other Operating Income are 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 8% of the Stadium Authority’s annual budgeted revenue in FY 2026/27. There is a total of 67,435 currently active SBLs. Through the first quarter, since inception, the value of the active SBLs amount to $561.0 million of which $538.8 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 Reports. In summary, total operating revenues were $9.0 million representing 13% of the overall budget for revenues and total operating expenses were $7.3 million or 20% of the budget. The debt service fund was able to pay down $9.2 million in debt, bringing total Stadium Authority debt down to $200.5 million. Capital expenses were $257,000 representing 1% of the overall Capital Expense (CapEx) budget.
FY 2026/27 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 10, 2026, the Stadium Authority Board adopted the Santa Clara Stadium Authority FY 2026/27 Operating, Debt Service, and Capital Budget. As of the timing of the publication of this report, additional information from FY 2026/27 has resulted in recommended budget adjustments as follows:
Operating Budget:
1) Buffet Costs: In FY 2026/27, the complimentary buffet cost due to StadCo is budgeted at $859,329 for the NFL season or $95,481 per NFL game. The Stadium Authority has the option to request StadCo to track buffet expenses and provide accounting records at the Stadium Authority’s expense. This fee is calculated at 5% of the annual buffet cost. The Stadium Authority has elected to utilize this service for FY 2026/27. Therefore, a budget amendment of $43,000 is needed to reflect the additional cost for the buffet accounting fee.
2) PSC 2024 Outstanding Balance: In FY 2026/27 $421,000 is budgeted to pay down the PSC 2024 Outstanding Balance based on a projection of what would be paid down in FY 2025/26. The actual amount paid in FY 2025/26 was slightly lower than projected leaving a remaining balance at the end of FY 2025/26 of $512,267. Therefore, a budget amendment of $91,267 is needed to reflect the additional amount that is expected to be paid at the end of FY 2026/27, fully paying off the PSC 2024 Outstanding Balance.
3) Transfer to City General Fund from Excess Revenues: In FY 2026/27, a transfer of $4.5 million in excess revenues to the City’s General Fund is budgeted. Based on projected expenses resulting from the actions described above, $4.3 million is expected to be transferred to the City’s General Fund. Therefore, a budget amendment of $112,767 is needed to reflect the decreased payment to the General Fund.
4) Renovation/Demolition Reserve: In FY 2026/27, a transfer of $4.9 million in excess revenues to the Renovation/Demolition Reserve is budgeted. Based on projected expenses resulting from the actions described above, a budget amendment of $21,500 is needed to reflect the reduced transfer to the Renovation/Demolition Reserve.
Capital Expense (CapEx) Budget:
1) L2710: E-Bikes - This project funds the purchase of 3 E-Bikes. The manufacturer phased out production of the model that the budget was based on. The current production model and the only model available for purchase has an improved electrical system, including increased torque and battery life. Due to unanticipated cost associated with purchasing the new model, staff is requesting a budget amendment to increase the project allocation from $18,000 to $20,000.
2) L2407: Plumbing-Boilers - This project addresses the general renewal and replacement of necessary plumbing equipment in the stadium, including, but not limited to, piping, fittings, vents, joints, switches, cleanouts, valves, drains, traps, primers, strainers, pumps, water heaters, interceptors, filters, and/or water softener systems. The project requires a budget amendment to cover additional project management costs related to the Plumbing - Boilers project. Therefore, staff is requesting a budget amendment to increase the Plumbing-Boilers project budget by $2,000.
3) L2714: ADA Platforms - This project will address the procurement and installation of platforms for the placement of additional accessible seating sections on the 300 level concourse behind the lower bowl seating sections. A study in consultation with a certified access specialist (CASp) will be performed as part of this project in order to evaluate the total amount of additional accessible seating that can be added, taking into account factors including ingress, egress, spacing, and path of travel. To keep the project on schedule, a budget amendment is required to accelerate project costs from FY 2027/28 and pull forward $200,000 from the total approved FY 2027/28 project cost of $1,500,000. These funds will support the necessary design and architectural work to proceed with the project.
4) L2715: Premium Areas - This project addresses refurbishing specified elements of premium club spaces at the stadium. These premium club areas provide hospitality to the highest paying SBL members and host a multitude of non-NFL catered events. Lifecycle expectations for finishes in these areas are 10 years based on heavy usage. To keep the project on schedule, a budget amendment is required to accelerate project costs and pull forward $150,000 from the total approved FY 2027/28 project cost of $1,205,058. These funds will support the necessary design and architectural work to proceed with the project.
5) Stadium Warranty Related Construction - The Stadium Warranty Related Construction is anticipated to decrease by $350,000 to offset the actions taken above for the ADA Platforms and Premium Areas. A budget amendment is needed to reflect the decrease in the Stadium Warranty Related Construction from $1,528,000 to $1,178,000. A corresponding reduction in FY 2027/28 as a result of moving projects forward by one fiscal year would free up $350,000 in year 2 that could be used to be allocated to high-priority projects or replenish the Warranty Related Construction allocation pending project justification through the next budget process.
6) Ending Fund Balance: The Ending Fund Balance is anticipated to decrease by $4,000 due to the actions taken above for the E-Bikes and Plumbing-Boilers. A budget amendment of $4,000 is needed to reflect the decrease in the Ending Fund Balance - Unrestricted from $342,497 to $338,497.
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 2026/27 budget appropriation is maintained at the fund level. At the end of the first quarter of FY 2026/27, spend has been within budget.
From time to time, adjustments to the budget are required to reflect new information and align budgets with actual revenues and expenses. Attachment 2 summarizes adjustments to the FY 2026/27 Operating and Capital Budget based on updated FY 2026/27 projected actuals, reflecting increases in expenses, as noted above.
COORDINATION
This report was coordinated with the ManCo 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 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 June 30, 2026; and
2. Approve the FY 2026/27 Budget Amendments in the Operating Budget in the aggregate amount of $134,267, offset by a reduction in Transfer to City General Fund from Excess Revenues and Renovation/Demolition Reserve to reflect changes in projected expenses, and amendments to the Capital Budget in the aggregate amount of $354,000 to increase project expenses, offset by a reduction in Stadium Warranty Related Construction expense and Ending Fund Balance, all as more specifically provided in Attachment 2.
Staff
Reviewed by: Linh Lam, Acting Treasurer
Approved by: Jovan D. Grogan, Executive Director
ATTACHMENTS
1. SCSA Financial Status Report for the Quarter Ending June 30, 2026
2. FY 2026/27 Budget Amendments