SANTA CLARA (KRON) — The day after the City of Santa Clara sent a termination letter to 49ers’ executive management, the mayor spoke to KRON4 Thursday detailing how non-NFL events were allegedly being mismanaged at Levi’s Stadium.
Mayor Lisa Gillmor also revealed why the city decided termination was its best option.
The city has an agreement with the 49ers for the team to manage NFL and non-NFL events at Levi’s Stadium. That agreement is coming to a crashing end after a probe by the city uncovered evidence of misuse of public funds, conflicts of interests, failing to properly pay employees, and wasting opportunities to generate revenue for Santa Clara, according to city officials.
The city claims its suffered losses of at least $6-7 million.
Gillmor said, “The 49ers have violated state law, mismanaged and misappropriated funds for the stadium, and they have lacked any sort of transparency on providing financial documents to the stadium. But most of all they led us to believe that they had experience and expertise in management of a stadium of which they have none. “
The 49ers were informed Wednesday that the city was stripping its authority to manage non-NFL events, as of this November.
“This year we are making zero performance rent. Next year we’re making zero performance rent. That’s a huge hit on our general fund and the City of Santa Clara,” Gillmor said.
“They made a lot of promises to us with Measure J, and they’ve (broken) almost every promise, mismanaged our stadium, are currently breaking state law. We had no choice,” Gillmor said.
When asked if the 49ers had responded to the city’s decision, the mayor said the team resorted to personal attacks and other “unrelated type statements.”
“They have sent us nothing factual at all,” the mayor said.
According to Gillmor, the 49ers are planning to hold money-losing events this year that the team has financial interests in, and when asked to provide financial disclosures, the 49ers were allegedly uncooperative.
“The public owns the stadium, these are public dollars,” she said.
The city has 60 days to transition authority to an interim management agency.
“We will hit the ground running with a new, professional, and honest company and we will see a turn-around immediately,” the mayor said.