Santa Clara officials authorize enforcement for 49ers’ alleged failed stadium rent payments

Peter Snarr

5 years ago

FILE - In this Jan. 11, 2020, file photo, San Francisco 49ers quarterback Jimmy Garoppolo (10) hands off to running back Tevin Coleman (26) during the first half of an NFL divisional playoff football game against the Minnesota Vikings at Levi's Stadium in Santa Clara, Calif. The current collective bargaining agreement expires in March 2021, but NFL owners are eager to get a new contract in place as soon as possible. That would enable them to begin looking toward new, lucrative broadcast deals, with a decade of labor peace assured. But the players don't appear to be in a rush to approve the new agreement that is the result of 10 months of negotiations between the sides. Indeed, several player reps last Friday night were adamant that more negotiating is needed. (AP Photo/Tony Avelar, File)

SANTA CLARA, Calif. (KRON) – In a closed session, the Santa Clara Stadium Authority unanimously approved a claim for arbitration on Tuesday to force the San Francisco 49ers to pay alleged owed rent for Levi’s Stadium that went unpaid at the beginning of the month.

In July the 49ers notified Santa Clara that they were going to reduce the facility rent by 20 percent based on an interpretation of lease provisions sighting “untenantable conditions.”

The Stadium Authority, made up of the Santa Clara mayor, city manager, city attorney and the city council, rejected the notice, claiming that rent reduction was not allowed because the cancellations were based on the NFL’s decision to cancel the pre-season, not based on any condition of the stadium.

To use the stadium, the 49ers pay over $24.7 million a year in monthly installments to repay public debt the Stadium Authority incurred to build Levi’s Stadium. The alleged amount owed for September is $2.7 million.