Santa Clara continues to claim that the 49ers are hiding financial information from the city. A civil grand report from last year claims that the city of Santa Clara hadn't seen any revenue from…events in six years nor have they seen any money from…events from the stadium's most recent fiscal year. When it was announced last year that a report was being done by a civil grand jury, the 49ers responded with an unusual act of having a 49ers executive follow, investigate and harass the jurors.
Why are cities not making more money off this big event? Because they are paying millions upon millions in expenses mandated by the NFL. In 2016, local taxpayers in San Francisco paid the bill for hosting the Super Bowl and its many off-field festivities. The NFL, a multi-billion dollar company, pays nothing, let me repeat that, nothing during Super Bowl weeks because of a deal between the city and the NFL Host Committee. If you were wondering, local taxpayers did pay for the construction of the stadium in Santa Clara. There is a vast amount of evidence that suggests that the Super Bowl benefits are overstated and not worth the cost of hosting.
Did we mention that San Diego, the city who did win the expansion team, paid a $500 million expansion fee? That is three times what their proposed stadium was supposed to cost. Yikes. The mayor also seems to enjoy telling the public how much he is doing behind the scenes. He can't just tell us because...he can't. He told the Sacramento Bee that when it comes to whether Sacramento will get an MLS team, the mayor wishes that he “could tell you and the public everything, but I can't”. What about possibly getting an MLB team? The A's? He can't tell us this either but know that he talked “with people who are very involved in these questions”.
Sacramento's debt manager recently announced that at the end of 2024, a city assessment will need to be done to figure out how the city will pay off the arena's bond debt. The city may be forced to dip into their general fund to pay off the bonds that are due. Similar to what the city had to do in 2021-2022 when arena revenues were again down to a point where the revenues did not pay off the yearly bond payment.
The facts, however, show otherwise. Since 2002, the Anaheim Angels have spent $54 million on capital repairs/improvements with $12 million coming from the city. Additionally, a number of the so-called improvement projects were just upgrades that the team wanted, such as replacing their scoreboard to a newer model. Building permits show that the Angels were spending money from their pockets so that they could buy the cool, new gadget and not the contractually obligated maintenance.
The A's are trying to get at least $500 million in taxpayer money for the new ballpark. As the Independent points out, that alone is slightly lower than the total amount that the city of Las Vegas brings in YEARLY from gaming taxes. The Oakland A’s believe that they are worth this money because they will bring in “400,000 new tourists to Las Vegas”. This is crazy. The A's would not bring in anywhere near this number of visitors. Based on airline issues alone with Las Vegas, making half this number would be an achievement. But maybe the A's could pull it off, considering they were dead last in attendance last year and are the lowest so far in 2023.
The city assessed the property value where the arena was built along with surrounding developments at $1.7 billion for tax purposes. The Warriors are asking the city to lower that assessment by just a little.....a billion dollars, that is. The Warriors believe the property value is at $706 million for 2022, which is $1 billion less than the city's value and would save the team over $11 million in property taxes for 2022.
Recently, the San Francisco 49ers announced plans to renovate 170 stadium suites. The cost is expected to be potentially "eight-figure(s)" according to team officials and will include no public funding as the money will come from their capital expenditure budget. The team expects construction to be done over the next two years.