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49ers plan to borrow $120 million from NFL for Levi’s Stadium renovations [report]

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© Stan Szeto | 2022 Jan 2

As the 49ers prep to host the 2026 World Cup, the organization plans to borrow $120 million to make renovations to Levi’s Stadium, according to The Athletic. With the renovations, it could be possible that the 49ers host the Super Bowl in 2026 or 2027 as well.

The $120 million will be primarily invested to upgrade premium seating and scoreboards. Because the 49ers want their stadium to be a destination for major events, upgrading the VIP experience is considered a priority. Furthermore, the profits generated from the upgrades are expected to keep the 49ers as a top two or three revenue team in the NFL.

Here’s what The Athletic said regarding premium seating:

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.

For the average fan, the team investing primarily in premium seating won’t exactly be all that exciting, but the prospect of the stadium hosting more high-profile events is enticing.

The 49ers would get the money from the NFL’s stadium fund. According to The Athletic, “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.”