Santa Clara Wants To End Stadium Management Agreement With 49ers
The city of Santa Clara is "seeking to end" its agreement with the 49ers for "managing and operating non-football events at Levi’s Stadium," according to Thy Vo of the San Jose MERCURY NEWS. The city is citing "several lawsuits initiated by the team, more than $85,000 in wages that contract workers weren’t correctly paid, and an inability to monitor or audit stadium spending because the team won’t hand over key documents." The city council voted 6-0 yesterday to "initiate legal proceedings to terminate" the agreement. City attorney Brian Doyle said that the action "would not affect" NFL activities. Doyle cited several lawsuits initiated by the 49ers against the city and said that the team’s "poor financial performance for non-NFL events means the city’s general fund has not received additional performance rent over the past two fiscal years." In addition to playing football at the stadium, the 49ers "manage the stadium year-round and are responsible for generating shared revenue through concerts and other events." The city council also voted yesterday to "strip the city manager -- and in effect, the 49ers -- of the authority to spend on stadium operations and maintenance without first getting approval from the city board." Council members said that the 49ers "have shown a pattern of mismanagement and can’t be trusted to spend taxpayer dollars on the stadium" (San Jose MERCURY NEWS, 9/18).