The San Francisco 49ers are planning to borrow $120 million from the NFL’s stadium fund to upgrade premium seating and scoreboards over the next three years before Levi’s Stadium stages 2026 World Cup games — and the team could try to host Super Bowl 60 that year, too.
NFL owners are expected to vote on the funding Tuesday at the annual meeting in Scottsdale, Ariz., according to a copy of the agenda obtained by The Athletic. The owners are also voting on stadium funding for renovations to the Cincinnati Bengals’ Paycor Stadium.
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Why is this important?
- The move signals that the 49ers want their stadium to be a destination for major events, which increasingly require an upgraded VIP experience.
- The profits from the move will further solidify the team as one of the top two or three revenue teams in the NFL.
- The NFL may announce in May the sites for Super Bowls 60 and 61 in 2026 and 2027, respectively. The former is when Levi’s will host World Cup games, so the club is believed to want the NFL title tilt for that year.
What kind of upgrades are the 49ers planning?
Levi’s is entering its 10th season since opening, so the upgrade of premium seatings comes as many of the 10-year terms of suite licenses are expiring (some are 20-year terms). There are 170 suites at Levi’s, but that number should rise to 179 as the team is adding nine additional ones to its highest category called owner’s suites, of which there are currently 24.
The 49ers are already one of the top revenue teams in the NFL, but this upgrade should push the franchise further into the top echelon. The team is not only looking to take advantage of big events, but also the planned 300-acre retail development adjacent to the stadium organized by the developer Related.
“We’re in the heart of Silicon Valley and the heart of the second largest concentration of Fortune 500 companies,” said Brent Schoeb, the team’s chief revenue officer. “Based on that segment’s feedback, they want a top tier VIP entertainment for their customers, and then also coming out of COVID for their employees, as well. So we certainly think we can increase the value proposition with all these renovations, which in turn will certainly help generate more revenue.”
The suite renovation will entail the installation of custom and lockable wine fridges, a custom and lockable liquor cabinet, upgrading the seating, and custom shelving to display the license holders’ products and services. Schoeb envisions the suites becoming mini executive briefing centers versus “just using it as a suite because a lot of them are using it for board meetings.” Each suite seats 20 people.
The renovation will begin after next season, and soon expand to include the scoreboard and digital advertising signs.
What is the NFL’s stadium fund?
The NFL’s stadium fund helps finance teams’ stadium projects, whether that be new venues or renovations. The clubs essentially don’t have to repay 34 percent of the money back by being allowed to hold back shared revenues (money that otherwise would be diverted to a pool shared with the other 31 clubs). The remainder is a low-interest-rate loan.
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The Bengals did not reply to a request for comment. Renderings of a proposed Paycor Stadium renovation were released last year.
(Photo: Stan Szeto / USA Today)
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