Resolution reached in legal battle between San Francisco 49ers and Santa Clara over Levi’s Stadium operations

“Santa Clara and San Francisco 49ers Settle Legal Disputes Over Levi’s Stadium Operation”

After years of legal battles and acrimony between the city of Santa Clara and the San Francisco 49ers over the operation of Levi’s Stadium, the two parties have finally reached a settlement on the last remaining pieces of litigation. The settlement, announced last week, resolves lawsuits from 2019 and 2020 that stemmed from disagreements over public safety costs for NFL games and reimbursements for food buffets.

Santa Clara City Manager Jovan Grogan, who also serves as the executive director of the Stadium Authority, stated that the city expects to receive $20 million in revenue from Levi’s Stadium over the next two years as a result of the deal. The Santa Clara City Council voted 5-2 to approve the settlement, with Mayor Lisa Gillmor and Councilmember Kathy Watanabe casting dissenting votes.

One of the key issues in the legal dispute was the escalating costs of public safety for NFL games at Levi’s Stadium. Under the original lease, the 49ers were responsible for paying $170,000 per game for police services, with any excess costs returned to the team in rent credit. The new threshold for public safety costs will now be $360,000 per game under the settlement.

The settlement also addresses the reimbursement obligations of the Stadium Authority to the NFL team, reducing the amount owed from $22 million to $14.8 million. Additionally, the deal includes the payment of $7.1 million in performance rent and adds a $4 per ticket surcharge to non-NFL events to help offset public safety costs.

Another point of contention was the responsibility for covering the cost of food buffets for Stadium Builder’s License holders. The settlement acknowledges that the Stadium Authority is responsible for these costs dating back to 2014, but amendments to the lease will now require the Authority to pay a fixed cost of $90,000 per game for buffets in certain VIP sections.

Both the city and the 49ers have expressed satisfaction with the settlement, with the team’s executive vice president and general counsel, Jihad Beauchman, stating that it puts an end to all remaining litigation and fast-tracks $20 million to the City General Fund. However, not all council members were in favor of the deal, with Mayor Gillmor and Councilmember Watanabe raising concerns about the financial impact on taxpayers and public safety.

The settlement marks a new phase of collaboration and partnership between Santa Clara and the 49ers, bringing an end to years of legal disputes and paving the way for a more harmonious relationship moving forward.