Real Madrid sign agreement to renovate stadium worth 360 million euros

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Real Madrid has signed a 360 million euro deal with investment group Sixth Street and the American sports entertainment group Legends Hospitality to organize concerts and other events at its Santiago Bernabeu Stadium and diversify its revenues.

The deal, which will be announced on Thursday, brings fresh money to Spain’s most famous football club as it recovers from the financial damage caused by the pandemic.

It also demonstrates how football clubs are trying to increase revenue as the cost of buying and paying the best players continues to rise.

Real Madrid is in the process of installing a sliding roof and a field at its 81,000-seat stadium. It will be completed next year and will allow for concerts and other events on the venue.

Legends was created in 2008 by the owners of the New York Yankees professional baseball team and the Dallas Cowboys American football team to help host live events. Sixth Street, which manages more than $ 60 billion in assets, took a majority stake in business last year.

The Bernabeu Stadium lags behind major U.S. sports venues in the amount fans spend per visit. “Legends” will work with “Real” to try to improve this, including by increasing VIP hospitality and the club museum.

As part of the deal, a new company will be set up to run the stadium, and the proceeds from the new business will be shared by 70 percent for Real Madrid and the rest for Sixth Street. The agreement will be valid for 20 years.

The transformation of the Santiago Bernabeu Stadium will be a turning point in Real’s history. This union. . . will be fundamental in providing a unique experience in the stadium, where several events can be held throughout the year, “said Florentino Perez, a billionaire tycoon who is president of Real Madrid.

Real Madrid endured the pandemic better than many of its European rivals, earning a combined net profit of around 1.2 million euros in the 2019/20 and 20/21 seasons.

Next weekend he will play with English football club Liverpool in the UEFA Champions League final, the most prestigious club competition in Europe, with a guarantee of 15.5 million euros regardless of the result and another 4.5 million euros, at least for the winner. In total, each club can earn in the region at least 100 million euros from the entire tournament.

This year, “Real” has already won the Spanish championship.

The club has repeatedly faced the Spanish top league due to the financial future of the sport. Perez is among the chief defenders a new European Super League for the region’s best teams, although the project quickly fell apart after its opening in April 2021 due to resistance from rivals, fans and politicians.

Peres too tried to get off track deal between CVC Capital and La Ligaunder which La Liga transferred to a private investment group part of its future rights to broadcast and media for 50 years in exchange for 2 billion euros.

Real Madrid advises Key Capital, and Sixth Street collaborates with JPMorgan.

Source by [author_name]

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