Levi’s Stadium rent dispute escalates between 49ers, Santa Clara
Training camp hasn’t even started and the San Francisco 49ers are already butting heads with opponents — filing for arbitration Tuesday in their ongoing dispute with the city of Santa Clara over rent payments at the team’s fancy $1.2 billion stadium.
The higher revenue requires a rent adjustment under the lease, Niners officials say, so they have offered $20.5 million in 2016.
The Santa Clara Stadium Authority, which is made up of the seven City Council members, said Tuesday that it had, in fact, initiated the arbitration process, but did not detail what it was asking for.
The rent dispute is the latest trouble for the stadium since it opened in 2014, including big traffic jams and weakening demand for tickets.
Games and events at Levi’s, including Super Bowl 50 this year, far surpassed anticipated revenue and contributed “millions of dollars to the city’s general fund,” according to the 49ers.
Guido said the Niners’ 40-year-lease deal includes a “rent reset,” which means the terms can be changed based on operating costs, revenue and outstanding debt.