Santa Clara's Stadium Authority (SA) is responsible for raising $330 million for stadium construction, but the 49ers are pretending that they're paying for that $330 million. 

See Council Member Will Kennedy on video explain at a debate how the 49ers are pretending to pay for most of the stadium.

What is Santa Clara's Stadium Authority?

• The Stadium Authority will be a joint powers agency between the City of Santa Clara and its Redevelopment Agency.
• The Stadium Authority will own, operate, and maintain the stadium.
• The stadium will have NFL, non-NFL, and civic events.
• The stadium will be on city-owned land.
  

The Stadium Authority's $330 million comes from the following sources:

(Term Sheet Section 7, Term Sheet Exhibit 14)

• stadium builder's licenses (personal seat licenses)
  
• naming rights
  
• pouring rights (rights to pour beverages)
  
• corporate founding partners
• concessionaire equity, and
• ticket surcharge (tax).

The Stadium Authority will sell high interest rate BBB-rated bonds (one step above junk bonds):
(From a 12/18/2007 Agenda report and Term Sheet Section 12.2)

• There will be short terms bonds taken out during construction that will have an esimated $21 million in interest due.
• After construction is over, the SA will take out long term (20 and 25 year) bonds backed by Naming Rights and Ticket Taxes.
• $330 M - $185 M = $145 M is supposed to be covered by PSLs and pouring rights/concessionaire contracts.
• $206 million in bonds will be sold against future naming rights and ticket surcharge income.
• $221 million in estimated total interest over 25 years on the SA bonds.
• The annual bond debt will be more than $20 million/year for decades.
  
• The 49ers will not be responsible for the Stadium Authority's bond debt. (Term Sheet Section 12.2)
  
• The 49ers have requested that the first bonds issued by the SA go to repay the 49ers $25.7 million for their stadium studies dating back to 2005.
  

The 49ers Stadium Company will not reimburse the Stadium Authority for:

(Term Sheet Sections 12.1 and 12.2)

• debt service on bond financing secured by NFL ticket surcharges and/or naming rights revenue,
  
• capital expenditures not included as reimbursable expenses,
  
• or Stadium Authority discretionary expenses.

The 49ers Stadium Company will NOT pay for all operating expenses of the SA:

• "The 49ers Stadium Company will, as part of the annual rent payable under the Stadium Lease, reimburse the Stadium Authority for the Net Operating Expenses applicable to such year, provided that, each year, the 49ers Stadium Company will have the right to reasonably identify the costs and expenses in the Annual Stadium Operating Budget that will be included in Reimbursable Expenses and, therefore, be subject to 49ers Stadium Company reimbursement." (Term Sheet Sections 9.1 and 9.2)
• According to our Council Members Kennedy and McLeod, "The deal could get even worse because the 49ers get to say how much they will pay for stadium operations and maintenance.  The city cannot require them to pay more if the maintenance is insufficient.  Although the city is not obligated to make up the difference, who else will?" (from "49ers stadium is not a good deal for Santa Clara, SJ Mercury News, April 7, 2010,
• http://www.mercurynews.com/fdcp?1270617097211 )

The Bond debt is so risky that Santa Clara's bond consultant says the bonds will be BBB-rated (one step above Junk Bond status):

http://www.youtube.com/watch?v=kXTm7RbCJiA

Sources of information for the Stadium Authority:

• pg 16-18, City Council Agenda Report on Stadium Project Financing, Dec. 18, 2007
• The Term Sheet Article 7 (SA funding sources - description)
• The Term Sheet Article 9.1 and 9.2 (Reimbursable expenses)
  
• The Term Sheet Article 12.2 (49ers not responsible for SA's bond debt)
  
• Term Sheet Exhibit 14 (table of construction costs)
• Term Sheet Presentation Slide 34
• Term Sheet Presentation Slide 35
  

http://santaclaraca.gov/ftp/csc/pdf/49ers-Term-Sheet-Presentation.pdf

See Slide 34 and #35 - and note that the 49ers contribute NOT ONE PENNY to the "Stadium Authority" share of construction costs.