49er Five Approve Sole Source Contract at 49ers’ Request for Non-NFL Merchandise at Stadium 

By Robert Haugh

The 49er Five approved a sole-source contract with Fanatics Retail Group for merchandise concessions at non-NFL events at Levi’s Stadium.  The 49ers lobbied the City Council, acting as the Stadium Authority Board, to approve the contract.

Fanatics already handles NFL merchandise at the stadium. The decision allows the company to expand its role. 

The new agreement links Fanatics’ compensation to merchandise sales, promising a boost in stadium revenue.

49er general counsel and registered lobbyist Jihad Beauchman told the Council that the Stadium Authority would gain an additional $150,000 to $250,000 in net revenue in 2025/26.

Beauchman said that there would be efficiencies gained because Fanatics already has operations in the stadium working for the 49ers on NFL events.

“I’m trying to understand the motivation behind this,” said Councilmember Suds Jain.  “It seems to me you guys are pushing us into going with Fanatics.”

But Jain, who argued against sole-source contracts just a few weeks ago, eventually voted for the 49ers’ sole-source contract request last night.

So did the rest of the 49er Five who have received millions of dollars in independent expenditure campaign contributions from the team:  Raj Chahal, Albert Gonzalez, Karen Hardy, and Kevin Park.

Mayor Lisa Gillmor and Vice Mayor Kelly Cox voted against the sole-source contract. 

“What I’ve learned over these years is that – and the Grand Jury has pointed it out – the lack of transparency with the stadium Authority and Manco, and what goes on in the financial dealings,” said Gillmor. 

“I think that we owe it to our public to go out for a competitive bid.”

A competitive bid process would have allowed Fanatics to compete for the contract with other similar vendors to ensure that the City gets the best deal possible. 

But the team lobbied against the competitive process.

7 comments

  1. The more important question is how does the Stadium Authority entering into this contract affect the 49ers contract? Do they get a better percentage? A finder’s fee (kickback)? Did our staff even ask? They seem to have had quite a bit of motivation to push this non competitive deal. Very fishy.

  2. I agree with the competitive bid process. Why would the “five” not want that?
    This is another deal that raises suspicions by a lack of transparency and a good process for the city.
    If Fanatics turns out to have the best deal for all parties then I’m fine with that. But to just blindly hand out a contract without knowing if this was the best deal for the city is another bad look and lack of transparency.
    But we have come to expect this.

  3. Funny but sad. Suds Jain is corrupt and intellectually dishonest. Not even Caserta was this bad. You should write a whole story on all the times that Suds openly lies and deceives people. He’s an example of the type of person who should not be in public office.

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