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Stadium Authority adopts FY 2025–26 budget; removes $620,000 office rent request, adds $1M contingent capex reserve
Summary
The Santa Clara Stadium Authority adopted its FY 2025–26 operating, debt service and capital budget Tuesday, deleting a $620,000 request to subsidize the stadium operator’s off‑site office rent and adding a $1 million contingent capital reserve.
The Santa Clara Stadium Authority on Tuesday adopted its fiscal year 2025–26 operating, debt service and capital budget after staff and board members negotiated several changes, most notably removing a proposed $620,000 appropriation to subsidize the stadium operator’s off‑site office lease.
City Manager and Executive Director Jovan Grogan told the board staff “is not recommending approval of that [office rent] in your proposed budget,” and said the $620,000 was deleted from the proposed figures. The budget that passed includes a contingent $1,000,000 allocation for capital expenditures intended to address aging infrastructure; staff said the allocation will be released only after the city finalizes a legal mechanism for transferring funds to the capital reserve.
Treasurer Ken Lee and Assistant City Manager Chuck Baker provided the board with the operating assumptions and a 10‑year forecast. The adopted budget projects $5.3 million in non‑NFL net event revenue for the coming fiscal year, includes $20.6 million in debt service, and anticipates direct transfers to the city general fund of roughly $6.4 million. The budget also incorporates terms of the 2024 settlement agreement that changed some surcharge and revenue waterfall calculations.
Board members raised questions about a line item called “SPL sales and service” (the stadium manager’s sales and service staff). Staff described a proposed staffing allocation that pulls multiple employees’ time toward stadium authority activities; city staff recommended adoption while reserving the right to return with adjustments. The board added a direction for staff to complete a deeper review and return with findings no later than September 16, 2025.
Board members also asked for more transparency on business and tenant activity at the stadium and whether privately held comparative financial data used in benchmarking could be shared with board members under confidentiality. Staff said they would provide additional information where permitted and continue quarterly engagement with the stadium manager and Statco.
The board voted to adopt staff’s recommendation with modifications (excluding funding for the stadium operator’s off‑site office rent and directing the sales/service review) and recorded a unanimous approval among members present.
