The Santa Clara Convention Center continues to see recovery after two dismal years during the pandemic.
On Sept. 24, the convention center manager, Oak View Group (OVG), released its third quarter financial report. That report shows that the convention center is on pace to net a little more than $2 million this year.
Heading into the year’s final quarter, the convention center has seen $1.56 million in profit. In 2022-2023, the center netted $2.45 million. However, $1.19 million of that money was in the final quarter of the year, more than $1 million than projected, according to reports.
If performance mirrors last year’s, the center could surpass last year’s profit.
The divide between expected profit last year and the actual profit is likely a sign that the trying days during the pandemic, where convention center performance floundered, have sunset.
Since 2018, OVG has managed the convention center. In 2018, Santa Clara City Council fired the former operator, Silicon Valley Chamber of Commerce. Citing poor financial performance and a lack of transparency, the council — led by Mayor Lisa Gillmor — gave the chamber the boot in the middle of the year.
Over the course of the 20 quarters OVG has managed the convention center, it generated $2.93 million in profit, an average of $146,939 per quarter.
A look at reports dating back to 2013-2014 (the oldest available) shows that the chamber generated $7.51 million in profit during the 22 quarters it managed the convention center prior to being fired, averaging $341,363 per quarter.
Recent Performance
During the chamber’s tenure, especially toward the end, it regularly gave the council reports, presented as action items. That council held the chamber’s feet to the fire, claiming it had dropped the ball on making the convention center financially viable.
However, the most recent report, for 2024’s third quarter, simply appeared on the consent calendar, voted on with a bundle of other routine items without discussion.
In the third quarter, which ended April 30, the convention center hosted 52 events, generating an average of $7,252 profit per event, according to the report. For context, the last quarter the chamber managed the convention center, the center hosted 126 events, generating an average of $10,503 profit per event.
Requests for interviews with OVG, through the city’s spokesperson, Janine De la Vega, resulted in a lengthy statement after more than two weeks.
“Despite the ongoing impacts of the tech industry’s fluctuations, the Convention Center has exceeded its revenue projections, thanks to successful event bookings and strategic financial management. OVG’s ongoing focus on high-priority events and the ability to adapt to market conditions will be an important factor in meeting the Convention Center’s goals,” De la Vega wrote.
The report drew attention to a few of events it hosted in the most recent quarter. The Aspire Tour, a new client. is an event aimed at motivating business leaders and entrepreneurs to pursue their goals. The center also hosted the California Conference for Women and the US Futsal Northwest Regional Championships.
Events in the third quarter saw 126,606 attendees.
Looking Ahead
Understanding OVG’s plan moving into 2026, when Levi’s Stadium will host multiple FIFA World Cup games and the Super Bowl, has been challenging. Nothing in De la Vega’s more-than-1,700-word response detailed plans for the two marquee events.
Similarly, since the quarterly report only details events that have already taken place, it too is useless in forecasting a comprehensive strategy.
The only mention of the sports juggernauts in the city-provided material is in a quote attributed to Kelly Carr, OVG’s general manager. However, it is devoid of insight.
“Oak View Group (OVG) is thrilled to be part of the preparations for major world events like the Super Bowl and the FIFA World Cup in 2026,” the quote reads. “We’re fully committed to making sure these events are executed to the highest standards.”
Capital improvements at the convention center are also ramping up.
Completed improvements include an HVAC replacement, an interior renovation — including new carpet, polished concrete floor, and a fresh paint — roof and electrical assessments, security camera updates and skylight-repair plans.
Other improvements in the works include revamping signs and AV technology, kitchen and bathroom upgrades and replacement of the grand ballroom airwall system — a series of partitions on tracks that make it possible to divide larger areas into smaller ones.
The revised bond measure plan complicates improvements at the convention center. Gillmor and Council Member Kathy Watanabe insisted that none of the $400 million the bond would levy from property owners go toward improvements near Levi’s Stadium.
That specification ensures that bond money cannot be used for infrastructure improvements at the convention center, given its proximity to the stadium.
Toward that end, the city is seeking sponsorships to help fund such improvements.
In July, the council approved a contract with Oak View Group Global Partnerships, a subsidiary of OVG, to secure corporate sponsors for the convention center.
How these capital improvements and sponsorships play into drawing profitable events to the convention center was unclear from the city’s response. Without more insight into OVG’s plan, residents will have to wait to see whether those efforts will draw big-ticket events to the center leading up to — or during — the Superbowl and FIFA World Cup.