Santa Clara has rejected the San Francisco 49ers’ “best and final” offer that would have resolved a legal battle over public safety and food buffet costs and mark the end of years of litigation between the two parties over Levi’s Stadium.
On March 20, stadium Compliance Manager Larry MacNeil sent a letter to the Santa Clara Stadium Authority Board — a governing body made up of members of the Santa Clara City Council — with a settlement proposal that he said would “deliver $18 million to the city’s general fund in the next 24 months.”
While the letter didn’t outline specifics of the proposed deal, which was rejected by the stadium authority board on Monday night, the 49ers were hoping to remedy the two years-long dispute.
The first debate is over public safety costs — the city has said the team needs to foot the entire bill. According to the lease agreement for Levi’s Stadium, any dollar that the Niners pay for cops over a certain threshold will be given back to them in the form of a rent credit.
In the letter, MacNeil said their offer “significantly increases the public safety cost threshold and creates a system which, based on the future cost estimates provided by SCSA staff, is projected to prevent the build-up of future rent credits.”
The other issue revolves around food buffets that are provided to Stadium Builder’s License holders and who pays for it. These are individuals who paid a one-time fee in order to have the exclusive right to purchase 49ers season tickets and get first access to tickets for other events at the stadium.
The stadium lease agreement says that while the 49ers are responsible for providing certain amenities, including a buffet, to the members at NFL games, the Stadium Authority is responsible for reimbursing the team.
A statement from the Santa Clara Stadium Authority Board released Tuesday afternoon said that the board has “provided direction to our staff and legal team on a counteroffer.”
“We encourage the Forty-Niners to engage with our staff and legal team on this proposal to achieve a mutually agreeable resolution that meets with board approval,” the statement said.
In response, a 49ers spokesperson said that their “offer remains the only way to fast track $18 million to the city’s general fund, which is facing a $9 million deficit. Beyond that, we cannot comment on ongoing confidential settlement discussions.”
Santa Clara’s rejection of the offer is the latest tangle in a battle marked by years of litigation and fighting with the NFL team. In 2022, Santa Clara and the 49ers settled one of their biggest legal disputes that let the team continue managing the publicly-owned stadium.
