The club seeks funds through private debt issues, according to Bloomberg
Florentino Pérez’s club assures that the renovation of the Bernabéu accumulates an investment of 893 million euros
Real Madrid will go to the financial markets again to request another 370 million euros that must contribute to solving the last section of the remodeling of the Santiago Bernabéu, according to information collected by the specialized agency Bloomberg. And the works at the Madrid venue continue to accumulate delays over time and have required different additional financial items to be carried out.
The Bloomberg portal assures that this economic operation consists of a private debt issue that will be returned with a percentage of the income derived from ticket sales in what is called a waterfall payment structure. It is a formula that has spread in the majority of clubs that have gone to different markets to face all types of investments.
The Santiago Bernabéu undergoes a profound remodeling which allows for an increase in capacity, the installation of a retractable roof and a removable playing field that should allow it to diversify its functions beyond football matches.
This new credit must resolve one last formal obstacle before being executed. The 370 million euros will be put to a vote during the Assembly which will be addressed on November 11.
A problematic remodel
The remodeling of the Santiago Bernabéu is far from the economic and calendar parameters designed at the time. The Real Madrid board of directors started the project with an initial loan of 575 million euros. This starting budget was evident and shortly after a second financial injection arrived, set at 225 million euros. In the last economic balance, Real Madrid confirmed a total investment of 893 million euros.
It must be remembered that FC Barcelona has requested a credit line of a maximum of 1,500 million euros to carry out the renovation works at the Camp Nou.