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Committee advances SFO lease amendment to add sporting-event advertising with percentage rent
Summary
The committee voted 3–0 to forward an amendment to SFO's airport advertising lease with Clear Channel that adds locations for large sporting events and a 65% percentage rent split for those spaces; staff estimated about $1.3M in revenue over two years.
The Budget & Finance Committee unanimously forwarded an SFO-requested amendment to its airport advertising lease with Clear Channel. The amendment would add advertising premises intended for promotion of major sporting events (e.g., Super Bowl, FIFA World Cup) and establish a percentage rent structure for those locations, with 65% of gross revenue going to the airport for the designated spaces.
Diana Volek, representing SFO, outlined the change and the airport’s need to add desirable welcome-messaging locations. Cheryl Brennan (Revenue Development & Management) said the current Clear Channel lease expires in October 2027, the airport plans to issue an RFP in Q1 2026 and the future procurement will include a financial structure that is the greater of a mag or percentage rent. The department estimated $1.3 million in revenue over the next two years from the amendment and noted 15% of that would go to the general fund.
Committee members discussed timing for reprocurement and how percentage rent could affect future design and installations; the Budget & Legislative Analyst recommended including percentage rent in future procurements. The committee voted 3–0 to forward the resolution to the full Board with a positive recommendation.
Ending: The item goes to the full Board for final action and SFO plans an RFP next year to replace or renew the advertising concession.
