By Robert Haugh

Former Santa Clara City Attorney Brian Doyle is raising new questions about possible financial misconduct at Levi’s Stadium. It follows the arrest of former 49ers executive Jim Mercurio in an alleged $1.4 million kickback scheme in San Mateo County.

Doyle is also sharply criticizing the five former and current Santa Clara City Councilmembers who ended the City’s legal battle with the 49ers before investigators could examine the team’s financial records.

In a statement shared with Santa Clara News Online (SCNO), Doyle revealed details about a controversial stadium construction contract investigated by Santa Clara’s legal team while he was City Attorney.

Doyle says the team discovered a contract awarded by Mercurio to paint concrete floors inside Levi’s Stadium. The price exceeded half a million dollars, and City staff found problems involving California’s prevailing wage requirements.

“Looking at the line items, we just couldn’t understand how painting even a very big floor could cost so much,” Doyle wrote.

Doyle now wonders whether the new criminal allegations raise questions about what happened in Santa Clara.

“Well, if Mercurio had set up the contract for him to get a big kickback, that would explain a lot,” Doyle wrote.

Doyle offered no evidence that Mercurio received kickbacks from the Levi’s Stadium contract. His statement raises questions.

Mercurio Faces $1.4 Million Kickback Charges

According to news reports, Mercurio and his childhood friend Michael Joseph McLennan were indicted by a San Mateo County criminal grand jury.

Prosecutors allege Mercurio used his position as construction project manager at the San Mateo County Event Center to steer publicly funded contracts to McLennan in exchange for approximately $1.4 million in kickbacks.

The alleged scheme was uncovered when a construction company complained it wasn’t being paid.

Both men have pleaded not guilty. Bail was set at $750,000 each.

Santa Clara Previously Challenged Mercurio’s Contracts

In 2019, Santa Clara officials challenged a roughly $650,000 stadium flooring project involving Mercurio.

According to previous reporting by the San Francisco Chronicle, City auditors alleged Mercurio failed to obtain City approval, seek competitive bids and comply with prevailing wage requirements.

The 49ers denied wrongdoing, but refunded the public funds spent on the project and assumed its cost.

SCNO also broke a story in 2019 that Mercurio owned stock in two companies doing business at Levi’s Stadium, VenueNext and Visual Labs.

The 49ers maintained that Mercurio had not violated conflict-of-interest laws. He subsequently sold his interests, and the team reimbursed Santa Clara $52,000 related to one vendor contract.

In 2022, California’s Fair Political Practices Commission fined Mercurio $2,000 for failing to timely disclose a source of income.

The 49ers dismissed Mercurio in March 2023 during layoffs involving approximately 30 employees. The team never publicly explained his departure.

Doyle Blames the 49er Five for Ending Investigation

Doyle places responsibility for ending Santa Clara’s scrutiny of the 49ers squarely on five Councilmembers: Anthony Becker, Raj Chahal, Suds Jain, Karen Hardy and Kevin Park.

The group known as the “49er Five,” fired Doyle in 2021 and also removed City Manager Deanna Santana.

In August 2022, the Council majority approved a settlement restoring the 49ers’ control over stadium management.

Doyle argues the settlement prevented Santa Clara from discovering the full extent of questionable financial practices.

“There was never any disclosure of the books; legal discovery was cut off prior to any real revelation of what the 49ers had been doing,” Doyle wrote.

In additional Facebook comments, Doyle said the City had strong evidence against the 49ers and had recently won an important arbitration.

“We had tremendous evidence against 49ers management and a very good shot at making the termination stick,” Doyle wrote.

Instead, according to Doyle, the Council majority negotiated with the 49ers while the City went nearly nine months without a permanent City Attorney.

“Don’t blame city staff for allowing the 49ers to continue their illicit management; it was the council members that they bought that did all the damage to Santa Clara,” Doyle wrote.

That accusation reflects Doyle’s opinion, not an established finding that Councilmembers accepted bribes.

However, the 2024 Santa Clara County Civil Grand Jury documented more than $4.5 million in 49ers-affiliated political spending during the 2022 election, including substantial support for Becker, Chahal and Hardy.

The Grand Jury also reported that more than $804,000 flowed into three 49ers-sponsored political committees shortly after the stadium settlement vote.

Becker was subsequently convicted of felony perjury for lying about leaking a confidential Civil Grand Jury report to the 49ers.

Hardy and Park are now running for Santa Clara Mayor. Chahal and Jain remain on the Council.

Should Santa Clara Reopen an Investigation?

Doyle believes the new criminal case provides an opportunity to revisit the stadium’s financial controversies.

He suggested Santa Clara County District Attorney Jeff Rosen contact San Mateo County prosecutors to determine whether Mercurio has information about his previous work for the 49ers.

Doyle also urged Santa Clara’s City Attorney to examine whether the 49ers committed fraud during negotiations leading to the 2022 settlement.

Doyle believes Santa Clara residents deserve answers about what the City might have uncovered had the Council majority continued its investigation.

“Let’s see which public officials are willing to look out for the residents of Santa Clara,” Doyle concluded.