Stadium authority approves Fanatics contract for non-NFL merchandise sales; board votes 5–2

The Santa Clara Stadium Authority voted to authorize the stadium manager to execute an Event Services Agreement (ESA) with Fanatics Retail Group Concessions LLC to operate merchandise concessions at non‑NFL events at Levi’s Stadium.

Stadium Manager and 49ers counsel framed the agreement as a revenue-enhancing operational consolidation. Jihad Beechman, Executive Vice President and General Counsel for the San Francisco 49ers, described Fanatics’ presence and argued the arrangement would direct more merchandise revenue to the stadium authority, saying, “This structure that we're proposing here today is actually to the detriment of the 40 niners revenues for the benefit of the SCSA.”

Why it matters: The contract expands Fanatics’ role beyond NFL events into concerts and other non‑NFL stadium dates. Staff presented a model that projected a rise in net non‑NFL merchandise revenue and negotiated a shortened, two‑year base term plus two one‑year renewal options; staff also added a 60‑day termination-for-convenience clause as a contractual off‑ramp.

Key terms and staff analysis

- Proposed term: two-year base (effective 04/01/2025) with two one‑year options subject to mutual approval. Either party may terminate for material breach or without cause with 60 days’ notice.

- Financial model: Staff reported a historical-model estimate that applying the ESA terms to the prior non‑NFL season would have increased net revenue an estimated 18% (roughly $150,000–$250,000 additional net revenue for the current non‑NFL season under the new structure). That figure reflects staff’s modeling using recent event sales and the proposed profit‑sharing tiers.

- Compensation: Fanatics would receive 7% of net revenue (minimum $5,000) when gross sales are ≤ $4,000,000 and 8% when sales exceed that threshold; promoters may alternatively select flat buyout fees for specific events. For promoter buyouts Fanatics would receive a flat $5,000 under defined conditions.

- Operational rationale: Staff recommended sole-sourcing in part because Fanatics already operates the stadium’s team stores and holds tenant‑exclusive space that facilitates inventory storage, logistics and continuity for event operations; that tenant exclusivity would not be available to a third‑party bidder in a typical RFP for only non‑NFL corridor sales.

Board debate and public interest

Board members asked whether the outcome depended on Fanatics’ exclusive access to the team‑store and tenant spaces, the adequacy of the revenue projections and how audit and transparency rights would be exercised. Several board members called for an RFP as a transparency measure; others favored executing the contract and using the 60‑day termination clause if performance concerns arise.

The vote: Authority Board members Gonzalez, Shahal, Hardy, Park and Jane voted yes; Vice Chair Cox and Chair Gilmore voted no. The motion to approve the ESA passed 5–2.

Actions and oversight

- The board approved the ESA as proposed. Staff told the board it will coordinate access to data and audit rights; the city attorney noted section 21 of the contract provides an audit mechanism and staff said the stadium manager will coordinate data access through the stadium’s financial-management system.

- The agreement excludes FIFA (World Cup) merchandise arrangements and will not apply to NFL events; FIFA’s merchandising structure will be handled separately.

Sources and attribution: Presentation and Q&A during the May 13 meeting; stadium manager assistant director Chuck Baker provided the staff analysis and Jihad Beechman spoke for the stadium manager/49ers.