For the second year in a row, the San Francisco 49ers are asking Santa Clara to cover the cost of the lease for the NFL team’s business office.
Last year’s attempt to secure a $620,000 commitment from the Stadium Authority — the public governing body that oversees city-owned Levi’s Stadium and is made up of members of the Santa Clara City Council — was unsuccessful.
The 49ers, who manage non-NFL events at the stadium, had previously moved their business staff from the stadium to a 52,000-square-foot space on Great America Parkway. At the time, team officials said that the move was done to consolidate everyone into the same space to make them a “more efficient organization” that would help drive revenue to the stadium and hopefully the city’s coffers.
The request resurfaced on Tuesday evening as the Stadium Authority board reviewed the proposed $81.3 million budget for the 2026-2027 fiscal year. This time, as a part of a $1.7 million line item named “other expenses.”
The team did not say how much of that money would go to the office lease, but in a statement, Jihad Beauchman, the 49ers’ executive vice president and general counsel, said that the “new office in Santa Clara ensures enhanced collaboration, efficiency and productivity to the benefit of both the Santa Clara Stadium Authority and the 49ers. We also believe the Stadium Management Agreement is clear on this issue and will continue to work with the city on next steps.”
A spokesperson for the city did not respond to a request for comment, but during the meeting, Finance Director Kenn Lee said the issue is still “outstanding” and they are still discussing and reviewing the agreement.
Mayor Lisa Gillmor, who last year said there would be “financial consequences for years to come for our public” if they have to cover the cost of the office, renewed her concerns this week.
“Why are we asking to approve again this year this $1.7 million line item when we don’t actually know what’s in it?” she said. “(The 49ers Management Company) operates at Levi’s Stadium and we own the building, when did (they) move, why did they move and who authorized them to relocate at the Stadium Authority’s expense?”
Councilmember Kelly Cox also expressed her concerns about why the request has once again surfaced.
“From a governance standpoint, I just want the reassurance that our decision making framework is structured with requests that are evaluated on contractual obligation and not relational dynamics,” she said.
Santa Clara is expected to revisit the office lease next month.
The request comes as the Stadium Authority is projecting lower revenues for non-NFL events than it had the last two fiscal years. In the upcoming fiscal year, they project $4.6 million compared to $10.2 million in 2024-2025 and $6.2 million in 2025-2026.
Concerns were also raised on Tuesday about the financial impact of the 49ers’ game in Mexico City when it comes to ticket surcharge dollars. While the team is playing two international games this season — they’ll open the season in Australia — the Mexico City game was originally expected to be held at Levi’s Stadium.
