As the construction of the new Santiago Bernabéu nears completion, Florentino Pérez and the Madrid executives must be rubbing their hands together as it could prove to be very lucrative for the Blancos. However, it seems that the realization of this gem has required much more funds than originally planned.
To finance this new stadium, the Merengues have already borrowed around €800 million. After obtaining a first loan of €575 million in 2019, repayable over thirty years, they obtained a second loan of €225 million in 2021 to build an installation that would allow them to keep the pitch in an underground area. However, this race for funding does not seem to be over, as our Spanish colleagues at AS and Marca announced on Thursday that the club is indeed planning to ask its Socios for permission to take out a third loan of €360 million to complete the work. In total, the capital club could therefore find itself indebted to the tune of €1.16 billion, not counting the interest, in order to enjoy this new multifunctional stadium. Fortunately, predictions suggest that it could generate as much as €300 million per year for the record holder of Champions League victories.
The situation at Real Madrid is a reminder of the financial challenges faced by football clubs, particularly in the current economic climate. Many clubs around the world have been hit hard by the COVID-19 pandemic, with empty stadiums and reduced revenue streams. This has led to many clubs having to cut costs, including player wages and transfer fees. However, clubs like Real Madrid, who have significant financial resources, have been able to continue investing in their infrastructure and facilities.
The construction of the new Santiago Bernabéu is a clear example of this. The stadium will be equipped with the latest technology and will have a retractable roof, which will allow it to host a variety of events, not just football matches. This will undoubtedly generate significant revenue for the club in the years to come. However, the level of debt that Real Madrid has taken on to finance this project is a cause for concern. The club will need to ensure that it can generate enough revenue to service its debt, while also investing in its squad and maintaining its position as one of the world’s leading football clubs.
The news that Real Madrid has more than €1 billion in debt is a reminder of the financial challenges faced by football clubs in the current economic climate. While the construction of the new Santiago Bernabéu is undoubtedly an exciting development for the club, it is essential that Real Madrid manages its debt levels carefully to ensure that it can continue to invest in its squad and maintain its position as one of the world’s leading football clubs.
📈Le Real Madrid avait initialement prévu un crédit de 575M d’€ pour le nouveau Bernabéu, cette troisième ligne de crédit va générer une dette totale de 1.175 milliard d’€ au club pour son nouveau stade.
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— LigActu 🇪🇸 (@LigActu) November 1, 2023
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