World Cup: FIFA Deal Appears to Put Santa Clara in the Black

Posted by Eticketing.co on February 11th, 2025

World Cup Tickets:  At first glance, it looks like the City of Santa Clara has done its best to insulate itself from the .4 million in expected costs associated with hosting the FIFA World Cup at Levi’s Stadium. At its Feb. 11 meeting, the council will discuss three agreements presented by the Forty-Niners Stadium Direction Company LLC and the Bay Area Host Group BAHC. If the city agrees to the contracts, the BAHC will take on all the costs and errands tied to hosting the World Cup and cover most of the city’s costs.

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The deal is designed to allay concerns from council members about the costs associated with hosting the event. The BAHC has agreed to reimburse the city for public safety and employee time connected to FIFA activities, and the 49ers’ Team Co has agreed to serve as a guarantor if the BAHC cannot pay. City’s Obligations for the FIFA World Cup:  According to the agreement, the city will be responsible for World Cup Support Services, similar to what is typically involved for any non-NFL event at the stadium.

FIFA 2026 Tickets: Security and Compliance for the World Cup in Santa Clara

Santa Clara will also be responsible for additional security services and standards required by federal, state, and regional agencies, as well as FIFA, for the World Cup. The city will create a Public Safety Plan with input from key stakeholders. This plan will include, among other things, an incident command system framework, risk duty, and plans for emergency communications, crowd management, and evacuation.

The Santa Clara Police Division will have final approval of the Public Safety Plan and will be responsible for its implementation during the World Cup. The city must maintain standard event insurance. The BAHC will pay for any specialty insurance. Hosting the FIFA World Cup comes with a hefty price tag. The document estimates it will cost million to million. This includes event costs, public safety costs, and capital improvement duties.

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About .4 million of that money is considered costs to the City of Santa Clara. Both sides understand the amount might change and have agreed to update expected expenses at least every two months. In the contract for hosting the World Cup, the BAHC promises to reimburse the city for all actual and reasonable qualified event expenses, even if the cost exceeds the final estimate. These expenses are broken down into three categories: planning and training, gear costs, and event costs.

FIFA World Cup 2026 Tickets: Planning and Training Costs

Planning and training activities leading up to the World Cup currently cost about .4 million. The budget includes 5,000 for equipment, such as a mobile incident command vehicle, crowd control and riot gear, and surveillance trailers. The BAHC prefers that the city lease equipment. If the city needs to buy something, it can lease it to the BAHC at market rates or give the BAHC the proceeds from the sale/salvage of the equipment.

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Event costs are the biggest price tag at more than .5 million. This will include things like public safety costs and city staff time for the World Cup. Both sides will work together to find public and private sources of income to help offset costs, including state and federal funding. If funding is not ultimately received, the BAHC has promised to reimburse the city. Repayment Structure and Repayment Disputes: Payments are not automatically approved.

The BAHC might ask for additional information, or reasonably dispute requested reimbursements related to the World Cup. Disputed amounts will be discussed, and if the amount is more than ,000, the money will be placed in an escrow account. If it exceeds 0,000, either party can request binding mediation. To ensure the payment of actual event expenses incurred during the primary event operations period from June 7, 2026, to July 4, 2026, the BAHC will make advanced payments.

World Cup Tickets: City’s Efforts to Expedite Permitting for Improvements

50% of the estimated actual event expenses, around .2 million, will be paid on May 1, 2026. The city must submit invoices before August 21, 2026, and final payment requests before September 18, 2026. The BAHC will pay certain amounts within 60 days of the final invoice. Any delinquent money owed to the city outside of the disputed amounts will be subject to 15% interest per year and 1.25% per month.

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Disputed amounts accrue interest at 3% per year and 0.25% per month from the original due date. As part of the deal, the BAHC will foot the bill for stadium improvements required by FIFA. This includes modifying the seating corners to allow seat removal and replacement for a larger playing surface, as well as enhancing the venting and drainage systems beneath the turf. ManCo will oversee the field improvements.

Santa Clara Makes Money from Hosting the FIFA World Cup. Preventing costs is just the first step for the city. It would also like to make money. In the contracts, there are two avenues for that to happen. The first is through the ticket extra. The Stadium Authority will receive to for every ticket sold. ManCo has promised to push for . If it cannot get that, the BAHC will develop a financial mechanism to assure that Stadium Authority will receive revenues that result in it receiving the equivalent of a surcharge.

FIFA World Cup Tickets: Additional Revenue Streams for Santa Clara

As with any non-NFL event, the stadium lease dictates the distribution of World Cup revenue, allocating 50% to the Stadium Authority General Revenue account and 50% to the discretionary fund. The lease also allows the city to direct up to 25% of the money into its general fund. The city will also generate revenue through normal tax avenues, including sales tax and transient occupancy tax, because the BAHC is taking on the expenses.

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The BAHC expects to receive approximately .5 million, earning .5 million for each of the six World Cup games at Levi’s Stadium and 0,000 for each non-match day. FIFA’s needs may adjust the estimated 30 non-match days. The BAHC will also receive revenues from the resale of allocated welcome packages, which are under contract with FIFA. The total potential income from these sales is not specified in the contracts.

Football World Cup Tickets: ManCo’s Accounting for World Cup Expenses

The BAHC reserve the Santa Clara Convention Center by April 1, 2025, and will pay the going rental rate. Access to the Youth Sports Park will remain. If it is limited, everyone will work to find alternative fields at equivalent rates or provide some other form of support. The city must approve any plans to use the Youth Sports Park. The Stadium Authority must buy tickets to each World Cup match as outlined in the stadium naming rights contract. The estimated cost is not to exceed .625 million.

ManCo will do the accounting and charge the BAHC. The Stadium Authority will not pay for this work. No ManCo or StadCo official will join on behalf of or in connection to BAHC in negotiations with the Stadium Authority. This will not apply to fundraising efforts. Santa Clara will not waive any local laws, taxes, or fees in joining with the World Cup events. The BAHC is raising a civic benefits program. ManCo will grow a greater selling plan for 2026-27 to address any revenue lost from non-ticketed or ticketed events.

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