REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on the Santa Clara Stadium Authority Financial Status Report for Quarter Ending September 30, 2025
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 second quarter of the 2025/26 fiscal year (“FY”), which runs from July 1, 2025 - September 30, 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 second quarter (July 1, 2025 - September 30, 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 four NFL games held in the second quarter of FY 2025/26. Levi’s® Stadium hosted two pre-season NFL games of the 2025 season on August 9th and 23rd and two regular NFL season games of the 2025 season on September 21st and 28th which are detailed in the report. This resulted in $5.4 million in NFL ticket surcharge for the Stadium Authority and $109,000 of Senior and Youth Program Fees for the City. Public safety costs for NFL games totaled an estimated $2.4 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 20 special events which are detailed in the report. The eight ticketed Non-NFL events generated an average net revenue of $703,000 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 $5.6 million in net revenue (excluding surcharge revenue) through the end of the second quarter. This is a decrease of $1.8 million from the prior year’s Non-NFL event net revenue of $7.5 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 September 30, 2025
(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 7.8% of the Stadium Authority’s annual budgeted revenue in FY 2025/26. There is a total of 67,286 currently active SBLs. Through the second quarter, since inception, the value of the active SBLs amount to $560.1 million of which $535.5 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 $31.7 million representing 48% of the overall budget for revenues and total operating expenses were $12.1 million or 32% of the budget. The debt service fund was able to pay down $8.8 million in debt, bringing total Stadium Authority debt down to $210.8 million. Capital expenses were $7.2 million representing 33% 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) Non-NFL Event Ticket Surcharge: The number of tickets sold to the Non-NFL events were higher than anticipated resulting in higher Non-NFL event ticket surcharge. Portions of the additional ticket surcharge revenue of $930,000 will be transferred to the discretionary fund reserve and the public safety cost reserve with the remaining amount being used for operations and ultimately flowing through the excess revenue waterfall to pay down the Public Safety Costs (PSC) 2024 Outstanding Balance, Transfer to the City’s General Fund, and Transfer to the Renovation/Demolition Reserve.
2) FY 2024/25 Stadium Authority General and Administrative (“G&A”) Budget Savings: The prior year Stadium Authority G&A expenses were under budget by $1.1 million. After the close of the fiscal year, those monies are then available from the Unrestricted Fund Balance for stadium operations which ultimately will flow through the excess revenue waterfall to pay down the PSC 2024 Outstanding Balance, Transfer to the City’s General Fund, and Transfer to the Renovation/Demolition Reserve.
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 second quarter of FY 2024/25, 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 includes adjustments in the FY 2025/26 Operating Budget to adjust for additional Non-NFL event ticket surcharge revenue as well as prior year Stadium Authority G&A budget savings. The attachment reflects these budget adjustments.
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> 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 September 30, 2025; and
2. Approve the FY 2025/26 Budget Amendments in the Operating Budget in the amount of $930,000 to reflect increases in projected revenues and expenses.
Staff
Reviewed by: Kenn Lee, Treasurer
Approved by: Jovan D. Grogan, Executive Director
ATTACHMENTS
1. SCSA Financial Status Report for the Quarter Ending September 30, 2025
2. FY 2025/26 Budget Amendments