REPORT TO STADIUM AUTHORITY BOARD
SUBJECT
Title
Action on the Stadium Authority Financial Status Report for the Quarter and Fiscal Year Ending March 31, 2020 [Board Pillar: Ensure Compliance with Measure J and Manage Levi's Stadium]
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 differs from previous reports in that this is the first year the Non-NFL events have generated a loss. The Stadium Authority first learned of the final amount of the FY2019/20 net loss on June 8, 2020, when Stadium Authority staff received an email from the Vice President/Controller of ManagementCo requesting that the Stadium Authority fund the $2.7 million loss. A summary of the Non-NFL events is provided below:
* 75% of Non-NFL ticketed events lose money or make zero revenue for the Stadium Authority. In total, six of eight events generated no revenue or operated at a loss to the Stadium Authority totaling $2.8 million.
* Based on the Stadium Manager's management performance, on average, the Stadium Manager's actions assume that the Stadium Authority will subsidize a non-NFL event in the approximate amount of $350,000.
* Two Non-NFL ticketed events were revenue generating, resulting in $1.1 million revenue.
ManagementCo staff notified the Stadium Authority on July 15, 2020, that supporting documentation for the FY2019/20 Non-NFL event net loss was available. Staff was granted access to the Stadium to retrieve the documents on July 29, 2020. KPMG, the Stadium Authority external auditors, have performed procedures on select samples of Non-NFL event documentation. Because the sample selection is limited in nature, the Stadium Authority staff...
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