REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on the Stadium Manager's Request for Approval of an Agreement with Jones Sign Co. Inc. to Replace the Naming Rights Signage at Levi's Stadium (Levi's Naming Rights Signage Refurbishment/Replacement CapEx Project) and Approve Related Budget Amendment
Report
BOARD PILLAR
Ensure Compliance with Measure J and Manage Levi's Stadium
BACKGROUND
On May 9, 2013, the Santa Clara Stadium Authority (Stadium Authority) and Levi Strauss & Co. (Levi's) entered into a Naming Rights Agreement (Attachment 1). Under the agreement, Levi's provides an annual payment to the Stadium Authority that increases at a rate of 3% per year in exchange for exclusive naming rights and branding at the Stadium. The payments total approximately $154 million over the initial agreement term of twenty (20) years. These payments go into the Stadium Authority's "operating fund" and are used for the reduction of the Stadium Authority's debt from the initial stadium construction, and to support stadium operations and maintenance.
The Naming Rights Agreement provides Levi's naming rights entitlements that include various exclusive privileges such as signage, media, and tickets to stadium events, in addition to naming the Stadium. The signage includes two Exterior Stadium and two Interior Stadium signs (Naming Rights signage). Under the Naming Rights Agreement, the Stadium Authority is responsible, at its sole cost, for cleaning, repairing, and maintaining the Naming Rights signage.
On January 30, 2024, a multi-component proposal related to the Naming Rights extension was presented to the City Council/Stadium Authority Board for consideration. The proposal included extending the term of the Naming Rights Agreement for an additional ten (10) years to terminate on February 29, 2044. During the extension period, Levi's will continue paying the annual fee to the Stadium Authority, increasing at a rate of 3% per year. The total anticipated revenue ove...
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