A recent article by the San Francisco Chronicle that outlined a potential $38 million loss to the City of Santa Clara for hosting the FIFA World Cup may be premature. Several sources with insight on the negotiations told The Weekly they’re not sure how the Chronicle arrived at its numbers.
In an article posted last week, the news agency had detailed information about the costs. It outlined up to $50 million in expenses for hosting six FIFA World Cup games, including up to $14 million in police fees. According to the article, the City might only receive $12 to $14 million in ground lease rent, leading to a potential $38 million loss.
The Chronicle cited a source within the City but would not name that source. When asked to confirm the numbers, the City did not offer as much detail.
“No, we cannot confirm this information at this time. Any communications on this subject between Mr. Googins and the Council/Stadium Board were confidential attorney-client privileged communications,” said Santa Clara Chief Public Information Officer Janine De la Vega.
The term “confidential attorney-client privileged communications” was used several times by the City in response to The Weekly’s questions.
Negotiations Continue Between City and BAHC
One of the reasons the City was not forthcoming with information is that there is no agreement in place between the City/Stadium Authority and the Bay Area Host Committee (BAHC).
Right now, all numbers are simply speculation because until that agreement is in place, it can’t be determined what costs will be absorbed by the City and what will be absorbed by other agencies, whether through upfront payments or reimbursements.
In a statement to The Weekly, Santa Clara City Attorney Glen Googins said City staff is still working out the terms of the agreement with the BAHC to make sure that Santa Clara is made whole.
“At the center of these negotiations is an agreement with the BAHC that commits them to assume the costs for World Cup events to be held at Levi’s Stadium,” said Googins. “This will include the obligation to reimburse the City for all necessary public safety costs. The BAHC understands and has agreed to this premise, with the details for this, and many other terms, still under negotiation.”
A spokesperson for the BAHC also reaffirmed its commitment to making sure the City’s finances are protected.
“The Bay Area Host Committee is committed to ensuring the success of FIFA World Cup 26 for Santa Clara residents, businesses, and government agencies,” said a spokesperson for the BAHC. “In fact, we’ve spent the past 13 months working diligently with City of Santa Clara staff on an agreement that would protect the city’s finances consistent with Measure J, as has been the case for other major events. We look forward to finalizing that process soon.”
Googins says once the proposed terms of the agreement are identified, it will be presented to the Council/Stadium Authority Board and everything will be made available to the public.
“At that time, the details of such proposed terms, along with projected event revenues and costs, will also be available for review and input from the public,” said Googins. “Unless the City Council/Stadium Authority Board directs otherwise, the legal analysis that my office conducts regarding the risks associated with Stadium Authority/City involvement with this event will continue to be provided to the Stadium Authority Board and City Council on an attorney-client privileged, confidential basis.”
He did not offer a timeline for when the issue might appear on the City Council agenda.
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