Getting to host a Super Bowl isn’t all about whether you’ve built a new enough stadium or are in a place where it’s sunny in February. No, the key to a successful Super Bowl bid is also about bribes, or as they’re called in NFL lingo, “financial demands.” The Santa Clara city council voted unanimously last night to accede to the NFL’s requirements by rebating a whole slew of fees and taxes, which were nicely summarized by newballpark.org:
- 10% NFL Ticket Surcharge – At a conservative set price of $500 per SB L ticket, the $50 surcharge would yield $3.75 million with an expanded capacity of 75,000.
- $0.35 Ticket fee – Meant to fund some senior and youth programs. A cap of $250,000 per year is imposed on this revenue source. If the 49ers play at least one home game, it’s likely that the 49ers would hit the cap, rendering additional collection of this fee moot.
- Hotel tax – A Mello Roos district was created to provide some stadium funding, backed by a hike in the transit occupancy tax from 9.5% to 11.5% in the stadium’s immediate area. The NFL asked for its share (350 rooms for an unspecified number of days) to be waived. Assuming that the NFL needs 350 rooms for the full two weeks, the City would forego some $70,000+ in hotel taxes. The City notes that it expects to make up this loss via taxes collected on additional room bookings.
- Off Site Parking fee – The City has imposed a $4.54 fee per space for event parking. That too will be waived. This appears to be for all Super Bowl activities, not just the game itself. The City notes that the fee is meant to offset the cost of traffic management.
Total cost of all this to Santa Clara taxpayers: Nobody bothered to ask! As newballpark.org continues, “Strangely, no estimates of this impact were disclosed, even as the City touts $300 million in additional economic activity for the region.” (Much of which would be taking place in the San Francisco part of the region, since S.F. would be the official “host city” for Super Bowl week events, even as Santa Clara would be the actual city hosting the game.)
We’ve been through before with Indianapolis, of course, so none of it should be any surprise. But it’s a reminder of how cities can host a major event like the Super Bowl and still come out of it with an operating loss. Good thing the Super Bowl brings in all sorts of ancillary economic benefits — oh wait.