For years, the city of Santa Clara has clashed with the San Francisco 49ers football team over financial disputes. The 49ers manage Levi’s Stadium in Santa Clara. According to the 49ers, the city of Santa Clara owes them millions in dollars in losses from non-football-related events that were held in the stadium. However, the city of Santa Clara argues that the 49ers owe them millions in dollars in public safety costs.
In October 2020, a group of officials ruled that city officials can oversee the 49ers’ finances using new financial management software. The software will offer greater transparency and help the city see where the money is going. However, the city also claims that the 49ers should pay the $260,000 that will be required to install the software.
To make matters worse, the 49ers have also been embroiled in wage disputes. In 2019, Santa Clara officials accused the team of not paying stadium contractors their hourly wages. In response, the 49ers claimed that they couldn’t access their financial records due to the complicated and outdated financial software. The city claims that the 49ers owe up to $85,000 in unpaid wages.
The new software aims to separate the 49ers’ and the city’s financial records, which had been mixed together with the previous software. This software might prevent financial disputes in the future. However, since there’s no way to separate the financial records from the past 10 years, the rest of the financial disputes will have to be settled in court.
The 49ers had petitioned for funds to buy a new payroll software for $13,000. However, the authorities denied that request, citing wage disputes and a poorly written contract. One official claimed that the contract removed the 49ers’ requirement to comply with local laws. In response, the 49ers denied the claims and said they were a misinterpretation of the facts.
As this story shows, wage disputes can often be complicated and involve a lot of legal issues. This is why businesses generally retain legal counsel to help manage such problems.