On Friday, the San Francisco 49ers and the city of Santa Clara announced a deal that would pay for the proposed $1.2 billion stadium to be built in the parking lot of the Great America Amusement Park. The team hopes to have the stadium ready for the 2014 season.
The deal is for $850 million, which will be provided by Goldman Sachs, U.S. Bank and Bank of America. The banks are expected to be repaid for their loans in revenue from ticket sales, rent, suite sales, sponsorships and naming-rights deals.
The rest will come from the NFL, which is epected to give $150 million. The city's redevelopment agency will add on $40 million and a local hotel tax will also generate $35 million. All loans are expected to be paid off in 25 years.
Here's how the entire stadium is being funded:
- $450 million: Bank loan to the city's stadium authority
- $400 million: Bank loan to the 49ers, who pass the loan on to the city's stadium authority
- $150 million: 49ers' payments, mostly from luxury suite sales
- $20 million: City's stadium authority payments, from existing stadium revenues
The groundwork in advancing the construction of the stadium has already begun. Santa Clara has already broke ground on a parking facility that would stand across the street from the new stadium. The parking garage will be use for not only the stadium, but for patrons in the nearby Convention Center and hotels.
Even though the hope for the team is a 2014 season opener, it is hard to say that it will come to be. Constructing the stadium is at least a two-year project and there could be some financial speed bumps along the way. Until the construction actually begins to break ground, it's hard to keep hopes too high for a 2014 season opener in Santa Clara.
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