2. Subsidizing the San Francisco 49ers, One Year Later: How to Lose a "Municipal Stadium"

Dear Santa Clarans:


When the 49ers' paid "stadium boosters" wanted your vote on Measure J last June, they went through some tortured verbal gymnastics to persuade us that this stadium was somehow "ours."  Now, a year later, we can finally see how untruthful that really was. 

The City Council formed the Santa Clara Stadium Authority to own and run the stadium for the team - and to protect the interests of Santa Clarans in the stadium deal.  That Authority was originally charged with selling subsidy bonds to get the stadium built.  We were also told that the Authority would be getting the naming rights sold and the concessionaire agreements signed.

This city Agency is even stuck with selling the very same Personal Seat Licenses, or PSLs, that left behind such a stink in Oakland.

Now, we learn that the original foundation of the Santa Clara Stadium Authority is built on sand:   Not only is it exceedingly unlikely that the Santa Clara Stadium Authority can possibly raise the $330,000,000 needed for the stadium's construction - it's not even clear that the Authority could possibly operate a Santa Clara Stadium for the $20 million to $30 million every year that will cost.

In violation of the Term Sheet itself, the 49ers have even taken control of the naming rights negotiations.

In fact:  For the first time last Tuesday, we actually heard that the Stadium Authority - this same City Council - is planning on borrowing money from the 49ers just as the Redevelopment Agency will be forced to do.  Any such cash advance to the RDA will have to be paid back at an interest rate of up to 8.5% per annum.  Wait until we find out what the Stadium Authority will be charged for the loans it takes from the 49ers.

But it gets even worse:  The "solution" to our problems, apparently, is now a "triple-net" lease which puts the stadium under the control of the 49ers themselves six months out of the year - and which actually includes periodic options for the Stadium Authority to hand the stadium over to the team for the entire year, every year.

Back in February, Mayor Matthews actually tried calling the 49ers' stadium a "municipal stadium." 

Last Tuesday evening - almost exactly a year after Measure J - our city's elected officials admitted that it's no such thing. 

That's how you lose control of a "municipal stadium" - a stadium they told us was "ours."

Next:  "Sign here - we'll tell you how much you're paying sometime next year!"

Thanks for all of your support,

Bill Bailey, Treasurer,
Santa Clara Plays Fair.org 

-=0=-