The Spanish club Real Madrid announced Thursday that it has signed an agreement worth 360 million euros (regarding $380 million) with the Sixth Street investment fund and the American company “Legends” to develop the Santiago Bernabeu stadium and make it more profitable.
“This long-term strategic agreement provides Real Madrid with approximately 360 million euros that the club can allocate to any of its activities,” the Royal Club said in a statement published Thursday regarding the agreement concluded on Wednesday.
“Through this alliance, Sixth Street acquires the right to co-operate some of the new projects at the Santiago Bernabeu for a period of twenty years. Likewise, Legends will contribute its experience and know-how in the operation of large stadiums and entertainment centers, allowing for better management of the Santiago Bernabeu.”
And according to the American newspaper “Financial Times” and the Spanish specialized press, Real Madrid will waive 30 percent of the income for future concerts and events that will be organized at the Bernabeu.
A new company will also be created to split these revenues, with 70 percent for Real Madrid and 30 percent for the Sixth Street investment fund, to which Legends is linked.
Real pointed out that the goal is to make the Santiago Bernabeu Stadium a unique space and a global standard for entertainment and leisure.
The Spanish press had announced at the end of January that Real Madrid was in the process of negotiating a contract worth 400 million euros over 25 years, but the duration of the contract and the amount were modified.
For Real Madrid, the goal is to diversify the club’s sources of income through its stadium, as the Bernabeu currently generates income only on the days of Real Madrid’s matches at home, that is, on 29 days of each year.
Real Madrid launched renovations to its stadium in 2019, investing 525 million euros in the process. Work is scheduled to be completed in December 2022, coinciding with the 75th anniversary of the founding of the stadium, which opened in 1947.