The San Francisco 49ers have reportedly filed for arbitration with the city of Santa Clara, claiming that the city failed to negotiate lower rent for the 49ers home, Levi’s Stadium.
Ramona Giwargis of the San Jose Mercury News detailed the specifics of the team’s claim.
“The NFL team had been in negotiations with the city since November to lower rent for the remainder of a 40-year lease at Levi’s Stadium, which opened in 2014. The team argues it is entitled under its lease contract to a reduction of more than $4 million a year because of better-than-expected financial performance.”
Giwargis also quoted team president Al Guido, so said “We’re disappointed that this has to be the next step but unfortunately it’s the only option we have left. It’s not the greatest use of time, money and energy.”
An NFL team having such issues with its host city only two years into such a long term lease is definitely not a good sign. Let’s hope the dispute doesn’t foreshadow a long-term rocky relationship with the host city.