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Earlier today, the 49ers and Levi Strauss & Co. announced an agreement that would name the 49ers new Santa Clara stadium "Levi's Stadium". The deal has been in the works for a while now, and one more piece of the stadium financing puzzle is complete.
The San Jose Mercury News was first on the scene with financial details, as they have had a leg up on the stadium news. I'd imagine their proximity to the new stadium is a pretty big deal, even as the team will remain the "San Francisco" 49ers.
The reports indicate the deal is worth $220 million over 20 years. Levi Strauss will have the option to extend the deal five years for $75 million. It is reportedly less than the team was hoping for, but it is still greater than the combined naming rights deals for all the other Bay Area sports facilities. And considering Jerry Jones continues to hold out for naming rights on the Cowboys' stadium, the 49ers had to get what they could.
According to the Merc, the revenue will be split 70/30 with the stadium authority getting the larger chunk, and the 49ers getting the remaining amount. The stadium authority will get $154.2 million over the 20-year term, starting with $5.7 million in 2014 and increasing three percent annually to $10 million in 2033.This money will go toward paying off the $850 million loan taken out to help pay off the $1.2 billion project.
The 49ers will received $66.1 million over the next 20 years to help pay off their own portion of the stadium debt. Additionally, the Merc is reporting that the 49ers are working an additional sponsorship deal with Levi's on top of the naming rights. Levi's will reportedly be the exclusive non-sportswear apparel partner of the 49ers and the stadium.