49ers File Arbitration with City of Santa Clara over Levi’s Stadium Rent Dispute

May 4, 2016   ·   Scott Polacek   ·   Jump to comments

The San Francisco 49ers reportedly filed for arbitration with the city of Santa Clara on Tuesday because they could not lower the rent on Levi’s Stadium during negotiations.
Ramona Giwargis of the San Jose Mercury News reported the franchise has been negotiating with Santa Clara since November in hopes of lowering the rent on the rest of the 40-year lease it holds at the stadium. Giwargis noted “the team argues it is entitled under its lease contract to a reduction of more than $4 million a year because of better-than-expected financial performance.”
Levi’s Stadium opened in 2014.   
49ers president Al Guido addressed the situation with Giwargis, saying, “We’re disappointed that this has to be the next step, but unfortunately it’s the only option we have left. It’s not the greatest use of time, money and energy.”
The key crossroads with the arbitration is the one-time rent reset that was in the contract...

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