Spanish football club Real Madrid will increase the size of its structured finance deal with JPMorgan and Bank of America to 225 million euros ($255 million) to complete the renovation of its iconic Santiago Bernabeu stadium, sources familiar with the talks said.
The initial deal agreed in 2019 was worth 575 million euros and allowed the club to begin transforming the stadium from a purely football venue into a 365-days-a-year event center and attraction.
The club subsequently decided to expand the renovation, adding a state-of-the-art retractable hybrid pitch so that the central venue could be used for more purposes, generating additional revenue.
According to a club source, the project is expected to increase the club’s revenue from the Bernabeu operation to €400 million per year, which is now €150 million.
In a meeting with a group of club members on Wednesday, Real Madrid president Florentino Perez said the new loan could cost less than 2%, a cheaper interest rate than initial operations, a source present at the meeting said. told Reuters.
Real Madrid have increased their revenues seven-fold over the past decade, and they were around €800 million in 2019. The club called off 2020 wit ha surplus despite the COVID-19 pandemic.
One of the sources said the club’s assembly is due to vote on the new deal on Saturday. A second source said Real Madrid, which has created a wholly owned subsidiary to operate the renovated venue in a “professional” manner, will announce the deal on Sunday.
JPMorgan and BofA declined to comment. The club did not respond to various requests for comment.
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