The San Francisco 49ers have once again approached the city of Santa Clara, requesting payment for the lease of their business office space. This marks the second year in a row the NFL team has sought to have the Santa Clara Stadium Authority, which manages Levi’s Stadium, cover this expense. Last year’s appeal for $620,000 went unanswered as the Stadium Authority—comprised of Santa Clara City Council members—did not approve the payment.
The team relocated its business staff from Levi’s Stadium to a 52,000-square-foot office on Great America Parkway to centralize operations. Officials explained that this move was intended to increase efficiency and boost revenue for both the stadium and the city.
Lease Expense Returns During Budget Discussion
The issue reemerged at a recent Stadium Authority board meeting when the proposed $81.3 million budget for the 2026-2027 fiscal year was reviewed. The office lease was mentioned within a $1.7 million category described as “other expenses,” though no exact figure was disclosed. Jihad Beauchman, the 49ers’ executive vice president and general counsel, stated,
“new office in Santa Clara ensures enhanced collaboration, efficiency and productivity to the benefit of both the Santa Clara Stadium Authority and the 49ers. We also believe the Stadium Management Agreement is clear on this issue and will continue to work with the city on next steps.”
Despite requests, city officials have yet to provide a formal response. During the meeting, Finance Director Kenn Lee noted the matter remains unresolved and under review.
City Officials Express Financial Concerns and Call for Transparency
Mayor Lisa Gillmor reiterated her apprehension about the financial burden on taxpayers, reminding that last year she warned of
“financial consequences for years to come for our public.”
She questioned the approval process for the $1.7 million line item, demanding clarity on the move, explaining,
“Why are we asking to approve again this year this $1.7 million line item when we don’t actually know what’s in it? (The 49ers Management Company) operates at Levi’s Stadium and we own the building, when did (they) move, why did they move and who authorized them to relocate at the Stadium Authority’s expense?”
Councilmember Kelly Cox also voiced doubts about the governance process, emphasizing the need for decisions to be based on contractual obligations rather than informal relationships, stating,
“From a governance standpoint, I just want the reassurance that our decision making framework is structured with requests that are evaluated on contractual obligation and not relational dynamics.”
Future Discussions and Financial Outlook for Stadium Authority
Santa Clara officials are expected to revisit the office lease issue next month as discussions continue. This request coincides with projections of reduced revenues from non-NFL events at Levi’s Stadium. The Stadium Authority anticipates earning $4.6 million in the next fiscal year from these events, down from $10.2 million in 2024-2025 and $6.2 million in 2025-2026.
Additional concerns have been raised regarding the financial effects of the 49ers’ upcoming game in Mexico City on local ticket surcharge revenue. Although two international games are planned this season—including an opening game in Australia—the Mexico City match was initially scheduled to take place at Levi’s Stadium.
Implications of the Ongoing Lease Debate
The continued dispute over the San Francisco 49ers lease payment highlights tensions between the NFL team and Santa Clara officials about how stadium-related expenses should be allocated. The unresolved status of the office lease cost could influence upcoming budget decisions and impact both city revenues and public trust. As negotiations proceed, clarity on financial responsibilities will be essential for maintaining cooperative relations and ensuring transparent governance concerning Levi’s Stadium operations.
