49ers issued letter warning breach of contract by Santa Clara city leaders

On Tuesday night, the Santa Clara City Council voted unanimously to issue a 30-day warning letter to the 49ers stating the team is in breach of contract of their management agreement. According to the mayor, it gives the team 30 days to cure its breaches and if the team doesn't, the city could pursue taking control of Levi's Stadium.

At the city council meeting, Mayor Lisa Gilmor was unrelenting in demanding the 49ers, acting as the stadium management, physically hand over its financial documents.

"At this point we are supposed to be making decisions about this stadium and and we haven't seen a single document that's required in this agreement in two and half years," said Mayor Lisa Gilmor.

She claims city funds may have been used to subsidize NFL games, mainly staff time for police. If that's true, it would violate voter-approved Measure J, which protects the city's general fund. Representatives from the 49ers fired back and said the team is in compliance with its management agreement.

"To say none of these documents have been provided for two and half years is just wrong. It's misleading, it's inaccurate," said 49ers Outside Counsel Harry O'Brien. "It's not fair and it's not right."

49ers President Al Guido, who was at Tuesday night's meeting, said auditors were at the stadium for most of the day. Guido said the team is willing to let the city review its budget documents but will not hand them over. He said if the documents go public, it could hurt negotiations with non NFL events.

"We're no different than any other venue and we believe that is critical to maintaining a successful business for the City of Santa Clara," said Guido.

"As a resident, long-term resident of Santa Clara and someone who is very much for the stadium," said Burt Field of Santa Clara. "We are upset on how this whole thing has played out."

Field is among dozens of Santa Clara residents who wore green arm bands and had signs that read "follow the law" supporting the mayor's stance.

"They are a business no different than any other business in Santa Clara," said Field. "When the city council or stadium authority asks for certain pieces of information they need to comply."
   
 

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