Levi's Stadium: 49ers made commitments to FIFA for World Cup 2026 without Santa Clara's consent

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Sep 28

As Santa Clara prepares to host several matches for the 2026 World Cup, city leaders are accusing the San Francisco 49ers of going "beyond what is normal and customary" in making commitments to FIFA on the city's behalf — without their knowledge.

FIFA announced last year that the city-owned Levi's Stadium would be one of 16 U.S. venues to host the 2026 World Cup. But planning for the event has been challenging for the city.

For the past year, the city's fought to get access to the necessary documents from the 49ers — who manage non-NFL events for the stadium and have been leading the charge to host the games. In April, Mayor Lisa Gillmor even suggested the city subpoena key documents Santa Clara had yet to obtain.

But while City Manager Jovan Grogan on Tuesday evening told the Santa Clara City Council that in it's role as the stadium authority board, the city has made progress with FIFA, he noted the recent document dump unearthed revelations that the Niners signed contracts around 2017 or 2018 that made "significant commitments" for the World Cup.

Those commitments, which Grogan said could pose "significant risk" to the city, included giving FIFA full discretion for stadium improvements as well as branding and signage rights for the worldwide soccer organization.

The city manager said that it was unclear what improvements FIFA may make and how much it would cost. Measure J — which voters passed in 2010 and signed off on the construction of the taxpayer-funded stadium — stipulates that the city isn't on the hook for the stadium's maintenance and operating costs. Grogan, however, said the city will continue to move forward in working towards a resolution that protects the city's interests.

Mexico national soccer team players practice a day before their friendly game against Iceland at Levi's Stadium in Santa Clara, Calif., on Thursday, March 22, 2018. The Mexico U.S. Tour is part of the preparation for 2018 FIFA World Cup in Russia this summer. (Ray Chavez/Bay Area News Group)

In a statement, a spokesperson for Levi's Stadium said they intended to comply with Measure J for the 2026 World Cup.

"Any required costs for the city of Santa Clara to host the World Cup will be reimbursed in accordance with the stadium agreements, as they have been since the stadium opened," the statement said. "There has also been a proposal in front of the Santa Clara Stadium Authority for months which would officially relieve them of any financial burden."

FIFA's request for branding and signage rights, specifically, sparked concerns among city officials and the council. In 2013, the city and the 49ers scored a $220.3 million deal with San Francisco-based jeans company Levi Strauss for the naming rights to the stadium for the next two decades. At the time, the deal was the fourth-biggest stadium deal in NFL history.

"We should be taking them into confidence and talking to them about what happened and how we can resolve that basically," Councilmember Raj Chahal said of Levi Strauss. "That's a pretty big chunk of money that we don't want to lose."

However, Santa Clara's naming rights agreement with Levi Strauss states that during "certain significant events," the stadium authority has the "right to obscure" any naming signage.

Though Grogan criticized the NFL team for its overreach, he told the council that it was the city's "understanding" that nearly every other stadium selected in the U.S., as well as others that were bidding for a spot, "signed a very similar agreement."

Fireworks are launched into the air during the playing of the national anthem before the NFL game at Levi's Stadium in Santa Clara, Calif., on Thursday, Sept. 21, 2023. (Jose Carlos Fajardo/Bay Area News Group)

"If you did not commit to that agreement, you would not have been considered," he said.

When asked by Councilmember Anthony Becker what the consequences would be if the Niners did exceed their authority as stadium manager, Grogan responded, "I don't think that this is appropriate for this venue."

City attorney Glen Googins called the dealings for the 2026 World Cup "highly favorable to FIFA."

"This is clearly FIFA used to dictating terms to people who want to host these events," he said. "They have reservation of rights to determine requirements of sole discretion really late into the process."

At the meeting, questions were also raised about how some of the FIFA documents handed over to the city were highly redacted.

"Our board, our council has gotten confidential information for decades, years, hundred years or so but now it's different?," Gillmor said.

In response, Grogan said that during conversations about the documents, "there's been a question about confidentiality and specifically if we provide documents to the city of Santa Clara will they be confidential?"

The fight over the 2026 World Cup is just the latest battle between the city and the 49ers. Over the years, the two parties have been locked in litigation and disputes over everything from stadium management to unpaid rent.