Stadium Authority Review: 49ers No Show (Again) So Board Passes its Own Revised Budget; 49ers Warned They’re in Violation of State Wage Laws

By Robert Haugh

The Stadium Authority (SA) discussed the budget and marketing plan. But the 49ers/Manco were no shows again, even though it was their budget and marketing plan. Wow.  

Maybe the team didn’t want to discuss their lack of documentation or the 20,000 free tickets they’ve allowed a promoter to give away to a Taylor Swift concert.

The 49ers/ManCo presented no new info since last week even though the SA asked for it.

So the SA Board passed a budget that keeps net revenue to the SA at $4 million. That’s what was projected until a few weeks ago. That is until the 49ers/ManCo just reduced it to $750,000.  And they didn’t give any explanation or documentation. So the SA Board is telling 49ers/ManCo that they’re expecting an extra $3.25 million.

The SA Board wouldn’t budget the 49er/ManCo’s request for $929,000 for “other expenses” without any detail. So the staff put in $110,000. That’s the amount spent in prior years for bank charges.

The SA Board did not pass the 49ers/Manco marketing plan. They said it was too vague and too weak.

Other Really Important Stuff

The 49ers/Manco received a Notice of Breach of Agreement from the SA. Executive Director Deanna Santana said that the team can’t demonstrate compliance with proper bidding and adherence to California Prevailing Wage Statutes. Wow.  

She made a long-winded explanation about this issue. And dropped one interesting piece of info. Santana said that last Thursday she was explaining things to the Stadium Manager/49er exec Jim Mercurio. But “there just wasn’t that knowledge base to even know how to comply.” Double wow.

You can watch it at the 1:22:45 mark.

The 49ers/ManCo have 30 days to cure their breach. And the SA staff is starting an audit and have requested all contracts.

The SA Board passed a resolution that no SA payments will be made unless the 49ers/ManCo can document that they have followed proper bidding procedures and have followed state laws. This could be a big problem for the team.

All the votes were 6-0 with SA Boardmember Debi Davis absent.

Chahal and Curfew

SA Boardmember Raj Chahal wanted to put on the table the idea of dropping the curfew for 2-5 weekdays. That’s what the 49ers/ManCo want. He said a city survey suggested residents are open to it.  But Santana corrected him saying that Chahal and the 49ers/ManCo are misreading the survey.

Chahal tried to change the topic by saying that both sides need to provide more info. But Santana corrected him again saying that the team agreed to the curfew when the stadium opened.  You can watch the exchange from 46:66 to 52:55.

SA Board Chair Lisa Gillmor then spoke and asked: “Do we want to change the curfew really for the benefit of the 49ers and stadium promoters at the expense of our residents?”  She also reminded Chahal that this issue has come up before and the SA clearly said no.

Then, SA Boardmember Kathy Watanabe who represents the Northside also corrected Chahal. “Taylor Swift doesn’t live in the Northside. U2 doesn’t live in the Northside. They all get to go home. But the people are still there and the people have to deal with the repercussions of events going until 11 o’clock at night, families trying to go to sleep, dealing with traffic, helicopters, all kinds of issues.”

Looks like Chahal has homework to do. Or he’s going to hear a lot more strong “womansplaining.”

5 comments

  1. This is a tough problem for any Council member. I would have been happier if we never had the stadium at all, but we do have it and all of the financial obligations that come with it. We still have on the order of $340M of stadium debt (plus several hundred million more in interest) that somehow must be paid off over the next 20 years. Well-run concerts are among the better ways we have to contribute to paying down that debt.

    That said, I understand the very legitimate concerns of the nearby residents re noise, traffic, alcohol abuse, etc. I’m very glad I live far enough away that I’m not affected much by that.

    Money aside, there are consequences to adjusting event days/times. Start events too early or on the “wrong day” and there are major ripple effects into rush hour traffic, public transit, etc. Things like fireworks shows don’t work before dark. Fans with jobs or kids may not be able to attend events if days/times change. It may be harder to get enough extra public safety officers or other event workers at certain times than others.

    While the effects may be overblown in arguments from the 49ers, there is at least some truth to the claims that event days/times have ripple effects for the entire tour of concert groups. It’s not practical for them to play in Baltimore one night, Santa Clara the next, and New York the night after that. In that sense, trying to schedule concerts for only weekends may not always be practical.

    I’d like to see more discussion of what could be done to address concerns about noise, etc. while not ignoring the reality that the debt must somehow be paid off. For example, maybe certain types of events are less offensive to neighbors while still being suitably profitable. More attention to avoiding events that actually lose money is of course also key. Every Council member I have spoken with seems very open to constructive suggestions about this. If you have good ideas, please don’t be bashful about sharing them..

  2. Did Chahal sell the Montague residents a bill of goods? WTH? He represents US not the frickin’ niners!!

  3. Again with curfew. Who stands to benefit the most from an extended curfew? Who, exactly, is he representing? It is not the residents of Northside/District 1 for either. Aside from the suspicious 49r support, this is another reason why Our city should not be artificially divided – Us & them instead of we.

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