REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on Stadium Manager's Request to Execute an Event Services Agreement with Fanatics Retail Group Concessions, LLC for Merchandise Concession Services for Non-NFL Events
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi's(r) Stadium
BACKGROUND
The Forty Niners Stadium Management Company (the "Stadium Manager") seeks to contract with Fanatics Retail Group Concessions, LLC ("Fanatics" or the "Contractor") to provide merchandise concession services for Non-NFL Events at Levi's(r) Stadium.
Fanatics currently serves as the merchandise provider for NFL Events at Levi's(r) Stadium. The proposed Event Services Agreement ("ESA") (see Attachment 1) dated April 1, 2025 memorializes the terms under which Fanatics will operate outside of the Stadium's Team Stores during Non-NFL Events.
Stadium Manager has previously engaged the Contractor to perform these services at Non-NFL Events on behalf of the event promoters or licensees, but not under an event services agreement specific to Non-NFL Events.
Under the current Non-NFL Event protocols, Fanatics is paid a fixed "concessionaire fee" and passes all service-related expenses-including the concessionaire fee-through to the event promoter. In contrast, the proposed terms under the ESA introduce a tiered profit-sharing structure that ties Fanatics' fee directly to gross profits from merchandise concessions. This approach incentivizes Fanatics to minimize pass-through expenses and generate more sales revenue as its compensation is directly linked to the profitability of its operations. These terms should increase net revenues to the Stadium Authority for Non-NFL Events.
The Stadium Manager has requested to enter into an ESA with Fanatics to manage merchandise concession services outside the traditional Team Store environment during Non-NFL Events.
This item was previously presented to the Stadium Authority Board on March 11, 2025, as part of the Conse...
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