Council approves league agreement to host Super Bowl 60 at Levi’s Stadium after contentious debate over financial backstop

After extended discussion and pointed questions about financial risk and insurer guarantees, the Santa Clara City Council approved a league event agreement that governs the city’s role in hosting Super Bowl 60 at Levi’s Stadium and related events.

The agreement assigns the City of Santa Clara to act as the lead local agency responsible for public safety, traffic and related stadium‑zone operations for the game and associated activities. It obligates the Bay Area Host Committee to reimburse the city for “qualified event expenses” (planning, training and actual event deployment costs) and requires an advance payment timed before the event. The 49ers’ stadium tenant entity (STADCO) agreed to a direct backstop obligation to cover any shortfall if the host committee cannot meet reimbursement obligations.

City Manager Jevon Grogan and City Attorney Glenn Guggen described the deal’s core protections for the city: a transparent invoicing and dispute process for reimbursable costs, an advance payment from the host committee (50% of projected actual event expenses), monthly billing with an expedited arbitration option for disputes above specified thresholds, and a stadco obligation to cover any qualified expense shortfall with a 6% annual interest charge if stadco did not pay when due.

Guggen told the council the agreement implements Article 21 of the stadium lease and preserves the city and stadium authority’s position under that lease while adding event‑specific safeguards. He emphasized that the agreement also clarifies that parking‑fee offsets for city costs (fees the city collects for off‑site parking related to a game) will not be applied against the stadium authority’s performance‑rent payments — a point staff said protects city revenue streams from being reduced by Super Bowl offsets.

The projected estimate for city “qualified event expenses” (public safety, traffic control, site equipment and staffing) described by staff was approximately $6.43 million. The agreement requires the Bay Area Host Committee to pay an advance equal to 50% of the then‑current estimate for actual event expenses (staff explained that interspersed planning invoices already being reimbursed under an interim funding agreement will be netted out from that figure). Staff said the host committee will make that advance by December 25, 2025.

Several council members pressed for stronger, more direct financial security. Vice Mayor Cox repeatedly asked whether a letter of credit or a TeamCo guarantee (TeamCo is the 49ers’ operating company) would be feasible; staff and the 49ers’ representative, Jihad Beechman, said stadco’s obligation sits within the financing structure the stadium owners and lenders established and that historic practice and the trust account flow provide a reliable mechanism for payment. The mayor said she would not support the agreement without a clearer hardbackstop and warned against circular guarantees that lean on city‑owned assets; the council ultimately approved the measure 5–2 after a motion by Councilmember Gonzalez.

County and nonprofit presenters earlier in the meeting had warned of very large fiscal pressures tied to other regional changes (a separate county presentation addressed cuts to federal Medicaid/SNAP funding), and several council members framed the Super Bowl vote in light of those broader fiscal pressures.

What the agreement requires

- Reimbursement: The Bay Area Host Committee is responsible for city planning, training and actual event expenses that the city documents as qualified event expenses. Staff will submit monthly invoices; undisputed charges must be paid. Disputed amounts follow an expedited resolution pathway and, if above established thresholds, can be placed into escrow. - Advance payment: The host committee must deposit 50% of the current estimate of actual event expenses by Dec. 25, 2025; staff will update that estimate as planning evolves. - Backstop: STADCO (the stadium tenant) agreed to reimburse the city for any qualified expense shortfall if the host committee fails to pay. The agreement includes interest on any late stadco payments. - Convention center use: STADCO will pay specified rent for convention center space and may receive performance‑based rent credits for qualifying expenditures; staff said a $200,000 business development credit from the DMO has been approved. - Special Event Zone: The agreement contemplates a special‑event ordinance to temporarily regulate commercial activity and signage in the stadium vicinity; staff will bring a draft ordinance back to council for approval. The agreement includes a narrowly drafted termination right for the host committee if the special‑event zone is not enacted or an equivalent regulation is not agreed.

Why the council was split

Supporters argued the agreement improves on earlier Super Bowl arrangements, secures city reimbursement for a large deployment of public safety resources and preserves the city’s role as the lead local agency for security. Opponents — including the mayor — said the financial backstop was insufficiently guaranteed on paper and asked for an independent letter of credit or a TeamCo guarantee rather than relying on stadco’s trust‑account structure, which stadco representatives described as the financing plumbing lenders put in place when the stadium was built. The mayor said she could not support an agreement that left the city exposed; Councilmembers who voted yes emphasized the advanced payment, the stadco backstop language and the expedited dispute process as adequate protections.

Next steps

Staff will finalize remaining contractual details with the host committee and STADCO, obtain the advance payment and continue the monthly invoice process under the interim funding agreement until this agreement takes effect. The council also directed staff to continue coordinating event planning, public safety deployment and related permitting and to return with any required follow‑up items.