49ers New Santa Clara Stadium: Team, City Reach Agreement With Banks For $850 Million In Loans
by David Fucillo on Dec 3, 2011 8:00 AM PST
in 49ers Stadium
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PrintThe San Francisco 49ers and the city of Santa Clara have taken a huge step forward in their attempts to get a new football stadium built for the 49ers down near Great America. Word got out last night that the 49ers and Santa Clara have reached an agreement with Goldman Sachs, U.S. Bank and Bank of America in which the three banks will loan the 49ers and the city $850 million to pay for much of the construction costs of the stadium.
The stadium will cost approximately $1.02 billion and will go up across the street from the 49ers current facilities on 4949 Centennial Boulevard in Santa Clara. The cost originally was approximately $987 billion million, but naturally that estimate has increased. Add in potential cost overruns and I suspect this $1.02 billion figure will not be the final number, either.
The city is taking on more of the debt load than previously anticipated, but the 49ers are paying a greater amount of rent to cover that debt load. If the 49ers go under the city is screwed, but given the financial state of the NFL, this seems like a safe bet for the city. As long as they have strong legal documents, they should not have any problems.
Most of the loans will be paid off using ticket sales, naming rights and the 49ers rent to the city of Santa Clara. That ticket sales will include the seat builder licenses (a.k.a. personal seat licenses). The rent is set to be $30 million per year. Additionally, the 49ers will be looking for upwards of $150 million from the NFL now that the new CBA is settled. There will also be $40 million from the Santa Clara redevelopment agency and $35 million from a local hotel tax.
Both sides are optimistic the stadium will become a large enough revenue source that they will be able to pay the loans off early:
But city and team leaders are betting the stadium will create so much profit that they will be able to pay off the loans in about 25 years using only money generated by the stadium. If their estimates don't pan out, the 49ers would be on the hook to pay the difference through higher rent payments to the city. The team would also fork over any extra construction costs that may come up. The city's general budget can't be touched, according to the deal.
On top of the $850 million in loans, the 49ers are expected to contribute $150 million primarily through suite sales already accomplished.
The two sides are hoping to get construction started in the middle of next year so that the stadium can open in time for the 2014 season. A more conservative approach would have construction start in early 2013 and have the stadium ready to open for the 2015 season.
If you live in or near Santa Clara and are curious about what will happen with all this, there will be three public meetings at the Santa Clara City Hall. The first is this Tuesday and will feature Goldman Sachs making a presentation to city officials. The second meeting is this coming Thursday, at which city officials will review stadium progress. The third meeting is the following Tuesday, at which the Santa Clara Stadium Authority will vote on legal relationships, a framework for stadium operations and a preliminary finance plan.
The 49ers have plenty of season tickets and PSLs to sell in order to pay this deal off, but it is a significant step in the right direction. I know some folks are a little pissy about the team living the city limits, but given how many teams play outside their respective named city, I don't think it's the end of the world.
It will be interesting however to see how the pricing structure is at the new stadium. Will the middle class and lower class fan (from a financial standpoint) be priced out? I'd like to hope not, but we'll have to wait and see.
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2015
I always planned to come out for my 40th and watch a game at the Stick. That’s in 2016. I’ll just have to make sure I get out before 2015 to see a game at the Stick, then come out after 2015 to see a game at the new stadium. Would be a shame if I never get to Candlestick.
Well they're saying 2014 now... so you'll be good.
I just can’t believe how fast they got that funding. It’s crazy.
That is alot of money
I bet the bathrooms will be nice.
They need to share this with the Raiders , it only makes sense ...
… get the Raiders to Pony up and with my back ground in building mega resorts , we could have this done for the 2012 season …!!
I'm your " Huckelberry "...it's just my game ..( .AleX ) was asked , what do you think about all the game manager talk ... AleX i guess i just managed myself a VIctory ... Extend the Man ...!!
NO thanks..I would rather they do something like in AZ where you could slide in a baseball field and share it with the Santa Clara A’s
Founder of team Omté Caspeen
nice
"You know whats funny? I always thought uhm dogs lay eggs and I learned something new today" Peter Griffin
by HUNGRY HUNTER on Dec 3, 2011 5:06 PM PST up reply actions
Nope
Baseball and Football don’t mix. Not one multipurpose venue that hosts both has ever been good for either. Candlestick and the Coliseum included.
Why would they share with the Raiders?
Whole point of getting the Raiders involved was because they thought they needed them for the funding. Turns out they don’t. So screw em. They’ve been playing coy thinking they had leverage over the Niners, so now they’re left out in the cold to either rent from the Niners at the Niners discretion or move to LA.
Guess you haven't been keeping up on the state of the economy in this country ...
… Cali in particular , maybe the Banks that are willing to help fund this project , could actually turn some of that money that won’t be needed if the Raiders helped out , to fund the truly needed housing market and help the hundred of thousands that are about too lose their houses …!!
I'm your " Huckelberry "...it's just my game ..( .AleX ) was asked , what do you think about all the game manager talk ... AleX i guess i just managed myself a VIctory ... Extend the Man ...!!
Yeah because they'd actually do that
If the money weren’t going to a stadium the banks would just sit on it as they have been. The idea they’d give it to home owners is laughable.
anybody that thinks the Raiders would come down and play across the street from the 49er offices is dreaming
or smoking the really good stuff. Much more likely they go back to L.A. and play in a new stadium there.
"It's impossible to hide the fire inside" - Bob Seger
Have you been to a shared stadium before?
Doesn’t matter what teams, it is terrible.
Anyone that has been to the new stadium in the Meadowlands would understand. Most Jets/Giants fans can’t stand it. It is just a huge grey monstrosity with nothing affiliating it with either team. Certain areas are changed to green or blue based on the team. It doesn’t give you the feel of going to your team’s home stadium at all, there is nothing personal/endearing about it in the slightest.
I understand it financially, but that is the only advantage and it isn’t worth giving up all the other intangibles.
Attack this day with an enthusiasm unknown to mankind. ~ Jack Harbaugh
Well I have a feeling
That since the Raiders would be nothing but minor contributors or even more likely just renters, that the stadium will be Niners optimized and they’ll cover over stuff for the Raiders. Kinda what they used to do at old Giants Stadium for the Jets games. And this again assumes the Raiders don’t take the easy out and partner with Roski or Anschutz down in LA where they have a giant fanbase just waiting for them to come back.
and raiders fans will vandalize all the 49er
signs and statues and everything else that anything to do with the niners.
by Sigelvictory on Dec 3, 2011 10:14 AM PST up reply actions
I live by the Meadowlands...
Jets/Giants have been doing this for YEARS so the fact that they can’t stand it is moot. They understand in these financial hard times both teams were better off coming to an understanding of sharing a stadium for the cost benefit for everyone in the area. As for the ‘monstrosity’ you call it I have been to a night game and its illuminated to whomever the home team colors is for the night which is pretty impressive
Niners,Nets,Reds & USC!!!
The Most Interesting Man In The World---->Mikhail Prokhorov!!!
by Kidd2Petrovic on Dec 3, 2011 1:12 PM PST up reply actions
After the preseason shootings, there is no chance this happens.
And then God created Saturn ... and he liked it, so he put a ring on it. ... Always a ninja
SaberCats Examiner | SB Nation Bay Area | Niners Nation | Twitter
that was perfect timing
"You know whats funny? I always thought uhm dogs lay eggs and I learned something new today" Peter Griffin
by HUNGRY HUNTER on Dec 3, 2011 5:09 PM PST up reply actions
I hate how everyone around the league calls the Stick a dump
Its like having a younger sibling, they only one who can talk trash about them is you.
The new stadium is going to change everything. and honestly i’m a huge fan of teams who have the stadiums & main offices/practice field in the same area
The 49ers winning at the Stick will change the way it looks
it’s been awhile since it’s been lit up but watch what happens when it is.
"It's impossible to hide the fire inside" - Bob Seger
That is definitely true
I’m gonna be at the game tomorrow so i’ll get the chance to see what thats like
by Lok on Dec 3, 2011 9:23 AM PST up reply actions
It's still a dump
Even when they’re winning. However it’s lasted so long it’s now unique because of it. The last baseball stadium that’s still hosting football in the NFL.
Oakland still actually does both still.
extrabaggs
"Just your typical Giants scoring rally: A faceburger on the basepaths, two errors from the second baseman and a bases-loaded balk."
by Badly Browned on Dec 3, 2011 9:33 AM PST via mobile up reply actions
True, but Oakland isn't a baseball stadium, neither is Miami
Oakland is a multipurpose donut that was built to host both. And Miami is a football stadium that had a diamond shoehorned into it out of convenience (which as you point out has now come to an end). Candlestick was built as and remains primarily a baseball park that had a football gridiron shoehorned into it. Which is ok, it’s in some heady company being so. Classic ballparks like Fenway, Yankee Stadium, Milwaukee Co. Stadium, Anaheim Stadium, Shibe Park, etc… all had football gridirons shoehorned into their confines at one time or another in their histories. Candlestick is the last remnant of that era.
During the MNF game in a couple weeks
The Stick will be beautiful
by js82 on Dec 3, 2011 10:06 AM PST via mobile up reply actions
but it IS a dump....
extrabaggs
"Just your typical Giants scoring rally: A faceburger on the basepaths, two errors from the second baseman and a bases-loaded balk."
by Badly Browned on Dec 3, 2011 9:32 AM PST via mobile up reply actions 2 recs
A boatload of great memories
I had season tickets for first year the 49ers played there and kept them for many seasons. Everyone was so excited to be leaving Kezar (talk about a dump). Concrete bench seating. It held something just short of 60,000 but only 12,000 or so were between the goal lines. The smell of whiskey was thick and the seagulls were crapping on our heads in the second half.
The current field at Candlestick is certainly better than it ever was. At one point they had the hardest astroturf ever. The players said it was like playing in the parking lot. Then all those years of playing on an infield in the early part of the season.
The change to Santa Clara will be great but there simply is no substitute for having a good team.
"It's impossible to hide the fire inside" - Bob Seger
I'll sound like a broken record, but
I hope that the 49ers tweak the design to make it more visually appealing. The open feel and the exposed steel frame might be “green” not to mention the asymmetric design but couldn’t they find a way to make an architectural wonder within a $1 billion budget.
I'm glad we will the super bowl they move n i would probably be done with them
before they become the santa clara niners uugh that even sounds nasty or maybe they could have a earthquake n knock it down n the stick is the only stadium standing ?
by Jayubb415rebirth on Dec 3, 2011 9:29 AM PST reply actions
Ummmmm, what?
They won’t take the Santa Clara name. Try to learn all the facts before saying things…
ClaYton Kershaw, Giant Killa | KeMVP #BEASTMODE
"If the 49ers success offends you, so be it." - Jim Harbaugh
by mikeinsp on Dec 3, 2011 11:37 AM PST up reply actions 1 recs
Regardless what they name they take they won't be in S.F so i call them what i want
to call them i’m born n raised in S.F n used 2 work at the stick so to me they won’t be the same 49ers your team represents your city n with S.F 49ers be in S.F or is that what we call santa clara now so is that a fact!!!!
by Jayubb415rebirth on Dec 3, 2011 2:30 PM PST up reply actions
Not really no.
If that were true there would be no New York Giants, New York Jets, Dallas Cowboys, etc…
They’re the San Francisco 49ers and they’ll remain the San Francisco 49ers. They still play in the San Francisco Bay Area even in Santa Clara and still represent the SF Bay Area just as they always have…
you're entitled to that
Personally, as long as they remain in the Bay Area, I’m fine with it.
by David Fucillo on Dec 3, 2011 3:21 PM PST up reply actions
I have no idea what you just said.
ClaYton Kershaw, Giant Killa | KeMVP #BEASTMODE
"If the 49ers success offends you, so be it." - Jim Harbaugh
Disappointed they are leaving SF
Growing up in SF, I’m actually pretty disappointed to read about this. I was really hoping SF would make a better effort to retain the 49ers in San Francisco. I thought with the recent success, more privatized firms would be willing to invest in building a stadium right by AT&T Park on the Embarcadero. I’ll always be a fan till I die, but it’s unfortunate to see my team move the South Bay.
Why is our off-season more exciting than our regular season?!
Follow me @eNNCity
SF Location would have helped to share with Raiders also
Moving to Santa Clara almost eliminates the idea of the 49ers & Raiders sharing a stadium together. If they would have stayed in San Francisco, I believe the Raiders (Especially now that Al Davis has passed. RIP) would have considered the option of playing in San Francisco. Wouldn’t the team receive extra funding from the Raiders being able to use the stadium? I think if they stayed in San Francisco, the 49ers wouldn’t have to heavily rely as much on the banks and taxpayer dollars.
Why is our off-season more exciting than our regular season?!
Follow me @eNNCity
There's no room on the embarcadero for a football stadium.
Only place to build it was out in Hunters Point, which location wise wasn’t much better than where they are now.
Thank i'm glad to see somebody else say that i'm born n raised in san francisco n i'm
scared i may not have that close relationship with the team once they leave n i wish i would hear more fans say that the .S.F Giants found some way to stay n i wish my 49ers would stay to but i do feel my 49ers will win a SB before they leave.
by Jayubb415rebirth on Dec 3, 2011 2:08 PM PST up reply actions
Just imagining...
but cool would it be if they put a brand new 49ers stadium at Treasure Island!?
Right inbetween the Bay Area, easy access from both ends of the bridge. But man, the traffic on Sundays would be horrid on the bridge!
Why is our off-season more exciting than our regular season?!
Follow me @eNNCity
treasure island
Given that Treasure Island is a man-made island, I’m curious how safe it would be if there was a big earthquake?
by David Fucillo on Dec 3, 2011 10:20 AM PST up reply actions
You couldn't pick a worse location
Can you imagine 68,000 people trying to exit I-80 at Yerba Buena Island? The Bay Bridge is already a parking lot most days. This would turn it into a nightmare.
by athletics68 on Dec 3, 2011 10:25 AM PST up reply actions 1 recs
Not to mention
cars single lining out of the parking lots onto the bridge. Would be kind of fun to have a bunch of ferries taking people to the game though….in a fantasy world.
Meant to say… * How cool would it be if they put a brand new stadium at Treasure Island!?
Why is our off-season more exciting than our regular season?!
Follow me @eNNCity
This is awesome!
The stadium will be 10 minutes away from my house :)
Affectionately,
Kareem Abdul-Jabbar,
NBA’s All-Time Leading Scorer
by afrikabamboodle on Dec 3, 2011 10:21 AM PST reply actions
This is both a good and bad thing
If you're watching a blowout, you can pass the time by counting the double teapots.
Samurai Champloo > Macross
by doubleteapot on Dec 3, 2011 10:38 AM PST up reply actions
Am excited about the new stadium
but a little bit apprehensive about ticket prices. With this new deal, they increased their rent to the city from $5 million a year to $30 million a year, which in my crude estimate comes out to a little under $40 per seat per game. Let’s say $20 for the cheaper and $60 for the pricier. That means tickets around the 50 yd line will probably be about $250-$300 per game, and the cheapest end zone tickets around $70-$80. Season tickets will be slightly lower, but not after adding on the PSL SBLs.
tickets
It’s hard to price out tickets at this point because so many things go into paying off the stadium bill. The team will sell things like pouring rights (Coke/Pepsi, beer company of choice) and advertising around the stadium among other things. There will also be parking revenue and other things, although I don’t quite know the revenue split on that stuff.
by David Fucillo on Dec 3, 2011 10:55 AM PST up reply actions
pretty sure you didn't mean
“The cost originally was approximately $987Billion” That’s up there in stimulus territory.
"It's impossible to hide the fire inside" - Bob Seger
That would be one heck of a stadium for $987 Billion! The top 1% could all go but no one else :-)
"Whether you think you can, or you think you can't, either way, YOU'RE RIGHT !"
stadium bill
Guess if they got a loan for $900 million (which I doubt they could get), the mortgage would be around $50-60 million a year, so they’re just getting Santa Clara as a financial partner/co-signor for half and then paying it back in rent so there’s no money out of pocket for the city. Wheeler dealers!
Does anyone know the going rate at other new stadiums for tickets?
I wonder how long it would take before they hold a Superbowl there
or if Stanford or Cal would play games in the stadium. That would obviously help financially by holding more games there
hmm, can't see Cal or Stanford playing there
Cal moves into their brand new athletic complex next season (after playing their “home” games in AT&T park this year), and Stanford’s stadium is still only a few years old. Now, AT&T has been hosting a Bowl Game for the last few years, and I could easily see the new Niners stadium taking that over. I would think that having a bowl game in a gorgeous new football cathedral could tip the scales in that direction. It’s still only 1 game though…
Hmm I didnt know Cal was getting a new stadium but you do bring up an interesting point bout
holding the bowl game in the new Stadium but hold bout the PAC 12 championship game as well?
Also Cal & Stanford could easily play their annual game there much like they use Cowboys stadium when Texas & Oklahoma played their game last season
Again won't happen
The “Big Game” is the biggest ticket draw for both universities all season other than USC. They’re not going to surrender that game to a neutral venue. If the Pac-12 championship becomes a neutral site affair I can see this stadium being used in the rotation along with other sites, but as it is now it’s again an extra game the universities aren’t going to willingly give up.
Not new
just remodeled and improvements to Memorial Field
by Frisco_Kid on Dec 3, 2011 1:47 PM PST via mobile up reply actions
No it's really new.
If you look at what they’re doing to it, they gutted Memorial Stadium. The only thing left from the 1923 stadium is the outer facade on the southwest side of the stadium and the basic stepped slope of the northeast side on the hill. The rest of the stadium was completely torn out. All the seats will be new, new pressbox, new luxury suites, new guts underneath in the 2/3rds of the stadium that has an internal structure. You can see how thoroughly they gutted it in this photo which is from May after they’d just started the reconstruction.
A Superbowl would be played there within 5 years of opening
They’ve made that pretty clear. But Stanford and Cal won’t be playing games there. Stanford just spent 100 million dollars rebuilding Stanford Stadium with all the modern stuff they needed and a capacity more in line with their attendance 50k. Cal is in the middle of a complete renovation of Memorial Stadium that is costing them 321 million dollars. So both teams are going to want to make their investments in their own stadiums worthwhile. Only college that might be an option would be San Jose State if they’re willing to play there. But the size of the new stadium, 68,000 seats, will probably size them out. SJSU can’t even fill their 30,000 seat stadium which they just spent some $$ renovating as well.
That’s the only reason I think the Raiders MIGHT still get in on this eventually is the need to find someone else to fill some dates for this stadium.
3 - 4 years from now
Cal’s stadium will only be 3 years old and Stanford’s only 7. I just don’t see either wanting to pay rent at a new stadium when they have their own new stadiums they’re still trying to justify having built.
We dont know what kind of a deal the team & the schools (or even the conference) would workout
so the deal in the end could workout financially for both sides. & I wouldnt really consider it paying rent when they would be holding at the most 1 game there
They'd still have to pay to use the venue
That’s how using someone else’s stadium usually works in those contracts. I just don’t see the benefit for either school, but particularly for Cal.
This stadium is going to be 50 miles from their campus and has no transit access from their area of the east bay. Which means few students would be able to make it down. The team would have to play 50 miles from their locker rooms, training center, etc rather than 50 feet from them. And I don’t see the alums going for it. They were all perturbed about having to travel over to San Francisco this season for games. Going all the way down to Santa Clara will be a deal breaker even if only for one game.
Everything you are saying makes complete sense & in the end you could be right but it would make no sense to not even consider it as a possibility
seeing as it would be the 1st NFL stadium built in over 40 years
by Lok on Dec 3, 2011 1:31 PM PST up reply actions
I think he meant first new NFL stadium in CA
Last one “built” was when Candlestick was expanded in 1970. Every other NFL stadium or former NFL stadium is older. Qualcomm was built in 1967, O.co Coliseum was built in 1966, and the LA Coliseum in 1923. And Angel Stadium isn’t even a football capable stadium anymore.
Teams playing outside of their respective cities
Washington Redskins – Landover, Md
Dallas Cowboys – Arlington, Texas
NY Jets – East Rutherford, NJ
NY Giants – East Rutherford, NJ
Moral of the story, SF 49ers playing in a long awaited new stadium in Santa Clara is a good move by the team.
Niners,Nets,Reds & USC!!!
The Most Interesting Man In The World---->Mikhail Prokhorov!!!
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