REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Report on the Audited Santa Clara Stadium Authority Fiscal Year 2025/26 Annual Financial Statements
Report
BACKGROUND
The Santa Clara Stadium Authority (Stadium Authority), the Stadium Funding Trust, and Goldman Sachs Bank USA entered into a Credit Agreement on June 19, 2013. Section 5.1(a) of the Credit Agreement requires that the Stadium Authority Annual Financial Statements be audited by independent certified public accountants within 180 days after the end of each fiscal year. On February 4, 2026, the Stadium Authority entered into a professional services agreement with CliftonLarsonAllen, LLP (CLA) to perform the annual financial audit of the Stadium Authority’s Fiscal Year 2025/26 Annual Financial Statements.
The Annual Financial Statements include: (1) the Independent Auditors’ Report which describes the auditors’ responsibility and their opinion of the Financial Statements, (2) Management’s Discussion and Analysis which provides an overall review of the Stadium Authority’s financial activities, (3) the Basic Financial Statements, and (4) the Notes to the Financial Statements which have additional information pertaining to the Stadium Authority’s operations and financial position.
The Audit Committee met with Stadium Authority and CLA staff on September 4, 2026 to review the draft Stadium Authority Fiscal Year 2025/26 Annual Financial Statements. The role of the Audit Committee is to provide oversight of the Stadium Authority’s financial reporting processes, internal controls and independent auditors. At the September 4, 2026 meeting CLA staff provided an overview of the Financial Statements and discussed the audit process and the audit results. The Audit Committee provided several comments, including: 1) the classification of the lease liabilities for financial statement presentation, 2) the required date to be used for the subsequent events footnote, and 3) the types of capital expenditures that may be capitalized as capital assets. The Audit Committee voted to accept the Financial Statements and recommended that the Stadium Authority Board note and file the report at the September 15, 2026 Joint Council and Authorities Concurrent and Stadium Authority Board Meeting.
The Financial Statements being discussed with this report cover the Stadium Authority’s 2025/26 fiscal year, which spans from April 1, 2025 to March 31, 2026.
DISCUSSION
On September 4, 2026, a draft of the financial statements was presented to the Audit Committee and CLA subsequently finalized their work which resulted in the issuance of the Stadium Authority Fiscal Year 2025/26 Annual Financial Statements (Attachment 1), Internal Controls and Compliance Letter (Attachment 2) as required per the Stadium Authority debt covenants, Independent Auditors’ Report (Debt Compliance Letter) (Attachment 3), and Governance Communication Letter (Attachment 4). CLA expressed an unmodified (i.e., “clean”) opinion on the Financial Statements. An unmodified opinion is when the auditor concludes that the financial condition, position, and operations are fairly presented, and the financial statements are free of material misstatements.
Key financial highlights for the fiscal year ended March 31, 2026 are as follows:
• The carrying value of Levi’s Stadium at March 31, 2026, net of depreciation, is $647.2 million.
• During the fiscal year, there were ten National Football League (NFL) games, eight large-scale ticketed non-NFL events, and forty-three (43) smaller special events held at Levi’s Stadium.
• The Stadium Authority recognized $89.1 million in operating revenue and $65.6 million in operating expenses.
• Revenues from the non-NFL events were $24.7 million and the related expenses were $16.6 million resulting in net non-NFL event revenue of $8.1 million.
• Debt service payments during the fiscal year totaled $20.6 million. Overall remaining outstanding debt was reduced by $9.9 million.
• The City of Santa Clara (City) received $4.8 million from Stadium Authority excess revenue, $3.5 million for performance-based rent, $1.0 million for stadium ground rent, and $302,000 in senior and youth fees.
After the September 4, 2026 meeting, CLA issued a final report on September 9, 2026 with a small change to the Statements of Net Position categorizing the right-to-use leased assets, net under capital assets.
Lastly, CLA issued an Independent Auditors’ Report where they note that nothing came to their attention leading them to believe there was any non-compliance with the Credit Agreement dated June 19, 2013.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378(b)(4) of Title 14 of the California Code of Regulations 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 preparation of this report are included in the Stadium Authority Operating Budget.
COORDINATION
This report has been coordinated with the Executive Director 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
Note and file the Santa Clara Stadium Authority Fiscal Year 2025/26 Annual Financial Statements.
Staff
Reviewed by: Linh Lam, Acting Treasurer
Approved by: Jovan D. Grogan, SCSA Executive Director
ATTACHMENTS
1. FY 2025/26 Santa Clara Stadium Authority Financial Statements
2. Internal Controls and Compliance Letter
3. Independent Auditors’ Report (Debt Compliance Letter)
4. Governance Communication Letter