Real Madrid assembly approves an additional $ 255m for stadium renovation

Real Madrid’s Santiago Bernabeu stadium undergoes renovations in Madrid, Spain on November 18, 2021. REUTERS / Susana Vera

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MADRID, November 20 (Reuters) – The general assembly of Spanish football club Real Madrid on Saturday approved a new loan of 225 million euros ($ 255 million) to complete the renovation of its Santiago Bernabeu stadium.

As Reuters reported on Thursday, Real Madrid will increase the size of its structured finance deal with JP Morgan and Bank of America, originally agreed in 2019 for € 575 million. Read more

The deal will now be worth 800 million euros and will allow the club to add a state-of-the-art retractable hybrid pitch that can be moved underground to a greenhouse 24 meters deep so that the site principal can be used for other purposes. generate additional income without wasting the grass.

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Club president Florentino Perez told the assembly that the underground greenhouse was the only solution the club found to preserve the playing field so that the stadium could be transformed from a purely football site into an events center and an attraction all year round.

“The Santiago Bernabeu stadium will be an architectural icon and an avant-garde international symbol that will become one of the most attractive places in Madrid and in Europe,” he said.

The project is expected to increase the club’s income from the Bernabeu operation alone to € 400m per year, from € 150m currently, a club source said.

Perez did not say how much interest the club will pay on the new loan, but in a meeting with a group of club members on Wednesday he said it would be less than 2%, a source present at the meeting.

Real Madrid have increased their revenues seven-fold over the past decade, and the club ended 2020 with an overall surplus of € 900,000 despite the COVID-19 pandemic.

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Reporting by Fernando Kallas; Editing by Hugh Lawson

Our Standards: The Thomson Reuters Trust Principles.

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