San Francisco 49ers

Santa Clara Accuses Levi's Stadium Manager, 49ers of Contract Breach

City issues letter to team management requesting audit after receiving $643,000 bill for flooring maintenance

The Santa Clara city agency that oversees Levi's Stadium held a special meeting Wednesday to address a $643,568 bill from the San Francisco 49ers for flooring maintenance, which the city says it did not approve beforehand.

The city has issued a "breach of contract" letter to 49ers management for the bill and requested an audit of the Santa Clara Stadium Authority's spending.

The city owns Levi's Stadium and leases the venue to the team, who in return manages the Stadium Authority's finances. The City Council oversees the Stadium Authority, but taxpayers are protected from any losses.

In an email to 49ers president Al Guido on Friday, City Manager Deanna Santana said stadium manager Jim Mercurio did not provide documentation showing proper bidding and minimum wage practices in securing the flooring contract.

"Given the unknown magnitude of potential non-compliance with the issuance of public contracts with public funds as the Stadium Authority's agent, you must produce copies of all Stadium Authority contracts issued by the Stadium Manager no later than April 12, 2019," Santana said in the letter.

The 49ers government affairs division did not respond to a request for comment.

The scuffle comes after years of bad blood between the Santa Clara Stadium Authority and the 49ers over increased rent, a 10 p.m. curfew, and financial transparency.

The Santa Clara Stadium Authority won a legal victory against the team in August 2018, increasing the team's rent by $238,000 to $24.7 million after the 49ers requested a reduction.

The team has maintained that it is managing the venue at world-class standards, and the city continues to pursue frivolous disputes.

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