The Santa Clara City Council finally got several key documents with regard to the FIFA World Cup games Levi’s Stadium is set to host in 2026.
At a study session on Oct. 10, the council heard details from city employees on different aspects of what has been negotiated with the nonprofit hosting the event and FIFA. The stadium will host six games between June 13 and July 1.
The Bay Area Host Committee (BAHC) has agreed to reimburse the stadium authority/city for any costs associated with the games. Further, TeamCo, a 49ers entity, has agreed to cover any costs BAHC is unable to cover.
“Staff is confident that the presented terms will sufficiently insulate the city and the stadium authority from the associated costs and services associated with hosting the games,” said City Manager Jovan Grogan.
City Attorney Glen Googins said FIFA has “resisted” the stadium authority’s effort to get the necessary documents, making acquiring them an “odyssey.” The agreements were drafted to allow for “as little misunderstanding as possible” as to what the city will provide that will be reimbursed.
The council got mostly unredacted versions of important contracts, most notably the agreements that detail much of the event cost. BAHC estimates that the event’s cost will be between $40 million and $50 million.
Mayor Lisa Gillmor said she was highly skeptical the cost would be so low. She said she looked at estimates for other cities hosting games, and those costs were between $200 million and $380 million. She said “the devil is in the details” on the documents, but took issue with how city employees structured reimbursements to the stadium authority/city.
“This reimbursement process is nothing like I’ve ever seen,” she said. “It is mind-numbing. It is cumbersome, and it will paralyze our staff if we have to argue over every invoice. It will paralyze our staff. We are a small city. We can’t afford to take the time to do that.”
Chuck Baker, assistant city manager, said city employees have been working to track time spent for planning FIFA events. They estimate that city employees have accrued roughly $150,000 in billable hours preparing for the games.
A little more than $12 million of the event’s cost will go toward public safety, which includes police, fire, transportation and support. BAHC will pay half of those costs upfront. The largest cost is $25 million in upgrades to the field at Levi’s Stadium to accommodate the soccer pitch.
Googins repeated previous statements that the games were “highly likely” to lose money, so the stadium authority/city being shielded from the costs is preferable.
“Why did we even start doing this?” Council Member Suds Jain said. “What was the motivation for even asking to have FIFA come here if we knew it was going to be a loss event?”
The Forty-Niners Management Company (ManCo) bid on the games, and, in 2017, Gillmor sent a letter of support.
The permanent improvements at the stadium would allow it to host future soccer or even rugby games.
“That will leave the stadium in a better place than it is today, a more agile place, an ability to host events that you otherwise would not be able to do but for the capital expenditures we are making,” Zaileen Janmohamed, president and CEO BAHC.
In addition to the FIFA games, BAHC is also bringing Super Bowl LX and the NBA All-Star to the area. BAHC estimates that those three events will generate between $270 million and $360 million in direct economic benefit throughout Santa Clara County, much of which is in the city, Janmohamed said.
In addition to the improvements, a $6 surcharge, city employees estimate, will generate between $1.8 million and $2.1 million, which would be split evenly between stadium operations and its discretionary fund.
The agreement that lays out the responsibilities for the stadium authority/city will come back to the council at its Jan. 28 meeting for approval.
The next regularly scheduled meeting is 7 p.m. Tuesday, Dec. 17 in the Council Chambers at City Hall, 1500 Warburton Ave. in Santa Clara.
Members of the public can participate in the City Council meetings on Zoom at https://santaclaraca.zoom.us/j/99706759306; Meeting ID: 997-0675-9306 or call 1 (669) 900-6833, via the City’s eComment (available during the meeting) or by email to PublicComment@santaclaraca.gov.
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"The Bay Area Host Committee (BAHC) has agreed to reimburse the stadium authority/city for any costs associated with the games. Further, TeamCo, a 49ers entity, has agreed to cover any costs BAHC is unable to cover."
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This is a great milestone in the process and it should be conveyed to every adult resident in Santa Clara to both promote the event and reassure taxpayers of the economic benefit. The previous FIFA World Cup was held in Qatar with the Associated Press reporting FIFA's cash reserves increased to $3.97B in 2022 from $1.6B the year before. The 2026 North America FIFA World Cup is expected to add billions more to the organization's coffers.
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Historically, the FIFA World Cup has been profitable in economically developed countries. In 2002 Japan and South Korea realized a $4.3B profit between the two countries, equivalent to $7.3B 2024 USD. Germany spent $6B in 2006, saw $14.1B economic impact for a $8.1B profit which is about $12B in 2024 dollars. Russia spent a staggering amount, compared to their GDP, to host the event in 2018 but the Kremlin claims the $13B USD was money well spent to uplift their global image and let the world know they're open for tourism and business. Qatar takes the cake having spent an astronomical $220B in 2022. Like Russia, Qatar took the opportunity to build substantial national infrastructure and promote the country as more than just a petroleum producer.
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In "upper-middle income" developing countries South Africa (2010) and Brazil (2014), financial investment was questionable due to having to build brand new stadiums and substantial infrastructure that went largely unused afterwards. South Africa was hoping to establish a global futbol/soccer sporting presence and inspire a youth development pipeline but that effort has lagged and Brazil was trying to boost domestic production, corruption seems to have thwarted them again.
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The 16 North American host cities spread throughout the U.S. (11), Mexico (3), and Canada (2) don't need to spend money building new infrastructure and they are leveraging world class stadiums already in use by professional sports teams. Hotels, restaurants, retail, tourism sites, and employees will all benefit. Let's not forget about the visibility boost for Major League Soccer, the National Women's Soccer League, and youth sports in our own backyard. According to iSport360, youth soccer is the #1 team sport in the U.S. with 3,000,000 registered players nationwide so the excitement of FIFA will likely be something families look forward to.
• https://isport360.com/top-youth-sports-in-the-united-states/
• https://www.sjearthquakes.com/
• https://bayfc.com/
• https://www.santaclarayouthsoccer.com/
But CSC do you not understand that if Ms Gilmor does not like it then we as a city are not supposed to like it. Or it wasn't her idea then it is not for the city. or if she is not in control then we can't have these events. She will complain to the bitter end, twist the narrative and lie to the residents.
Everyday residents like me don't have the time to dig into details of these contracts. So I'm glad we have someone like Mayor Gilmor looking out for us. Some people will complain she is being unreasonable in her demands for details, but as a resident (district 6), I'm very appreciative of her efforts. I simply don't trust the "49er friendly" council members to do the same.