On Thursday, Spanish club Real Madrid revealed that it had signed an agreement with the Sixth Street investment fund and the American company “Legends” to develop the Santiago Bernabeu stadium, at a value of 360 million euros (about 380 million dollars) in order to make it more profitable.
The Royal Club said in a statement published Thursday afternoon about the agreement concluded on Wednesday, that this long-term strategic agreement provides Real Madrid with approximately 360 million euros that the club can allocate to any of its activities.
“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 Bernabéu.”
And according to the American newspaper “Financial Times” and the Spanish specialized press, Real Madrid will waive 30% of the income for future concerts and events that will be organized at the Bernabeu.
A new company will also be created to split this revenue, with 70 percent of Real Madrid and 30 percent of the Sixth Street investment fund, to which Legends is linked.
“The goal is to make the Santiago Bernabéu stadium a unique space and a global standard for entertainment and entertainment,” Meringhi said.
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.
And 30 percent to the Sixth Street investment fund, to which Legends is linked.
“The goal is to make the Santiago Bernabéu stadium a unique space and a global standard for entertainment” Meringhi said.
And the Spanish press had announced at the end of January that Real Madrid was negotiating a contract worth 400 million euros over 25 years, but the duration of the contract and the amount were modified.
Legends Hospitality is a member of the Sixth Street Fund and specializes in sports stadium management.
This company operates the Sofi stadiums in Los Angeles, AT&T in Dallas, Allegiant in Las Vegas, and the Los Angeles Galaxy football stadium.
That company was established by the “New York Yankees” and “Dallas Cowboys”, and the investment fund bought 51 percent of its shares in early 2021.
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.
