Cash-Strapped California’s $10M Announcement Gives 49ers Major Boost After Big Pledge

Last month, records show Gavin Newsom, the Governor of California, did not include any funding for the World Cup in his revised state budget. The reason being the state currently faces a $12 billion budget deficit. But per the budget deal that was reached between the governor and legislative leaders on Tuesday, spokesperson Tara Gallegos confirmed that the state has now found $10 million “in direct financial support for 2026 FIFA World Cup operations.” 

Santa Clara officials had previously estimated close to $50 million to stage the matches, excluding the costs that would be needed for tournament-related events elsewhere in the Bay Area. FIFA (soccer’s governing body) is only going to pay $13 million for the publicly owned stadium events, which left a gaping $37 million deficit.

In response, San Francisco 49ers pledged to “cover approved Santa Clara public safety costs for the games they’re hosting, if necessary” in February. But that wasn’t without its set of critics who argued that they only agreed to pay “approved” costs… that there might have been other disputes over additional payments. But with the revised state budget fronting a $10 million assist, nonprofit Bay Area Host Committee, as well as the 49ers may breathe a sigh of relief… Which leads one to ask: What is really stopping the buck at only partially settling this?

San Francisco Chronicle reported that nothing changes until the deal passes out of both houses of the State legislature by Monday. Only if it does will this become a law in time for the July 1 start of the new fiscal year. It is noteworthy that the $10 million in discussion will exclude the state-funded $7 million that the hosts have been allocated three years ago for security planning of the events. Furthermore, the tournament, which includes six matches at Levi’s Stadium in Santa Clara and eight at SoFi Stadium in Inglewood during this time next year, would see money unevenly split between both cities, considering Southern California and its privately funded host committee will host more matches than the Bay Area. 

But things don’t end here.

The Bay Area Host Committee and 10 other U.S. World Cup host cities have been lobbying to get federal money. With an aim to secure $625 million for security, per public records, the President has responded by creating a World Cup task force while the House Homeland Security Committee recommended placing World Cup money to this year’s federal budget. 

On the other side of the grind, Mayor Lisa Gillmor and Council Member Kelly Cox (who voted against the 49ers guarantee) remain wary and have advocated for more safeguards. Meanwhile, the 49ers’ deal was passed on a 5-2 vote (five council members in agreement with the NFL team). 

For the 49ers and Levi’s Stadium, the World Cup is more than just a massive soccer party. The global spotlight, the stadium upgrades already underway, the chance to showcase Silicon Valley’s tech-forward venue to the world, it could be legacy-building.