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49ers file for arbitration in Levi's Stadium rent negotiation with Santa Clara

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A month ago, we wrote about the dispute that was arising between the San Francisco 49ers and the city of Santa Clara over Levi's Stadium rent. The stadium lease provides for a one-time adjustment to the rent after the first year if expenses and/or revenues are higher or lower than expected. Fan complaints aside, the stadium has been a financial success, and the 49ers believe the rent should be decreased from $24.5 million to $19 million. Certain members of the city disagree.

The lease includes language that requires arbitration if the two sides cannot agree on the number. The stadium authority voted no on the proposed dollar figure, and so the 49ers have filed for arbitration. My guess is the 49ers end up winning this based on the numbers being thrown around, but it will be interesting to see what else the city brings to the table in the process.

The 49ers published a letter regarding the process. I think it hits on some useful points, but also has a few pieces of fluff. They point to the rent other teams are paying for their stadiums. I understand that the 49ers are paying a lot more than most teams, but they negotiated this and any adjustment now is based strictly on what is going on at Levi's Stadium, not at other stadiums around the country.

For now, we'll wait and see what the arbitration process brings.