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REAL MADRID

New Bernabéu expected to generate €1 billion in revenue

Real Madrid estimate that under normal conditions and with the rebuild complete, the new Bernabéu will generate over €1 billion per year.

Update:
New Bernabéu expected to generate €1 billion in revenue

Real Madrid have so far borrowed €100 million of the €570 million requested to build their brand new Santiago Bernabéu stadium. Another €270 million will be borrowed next July and the last €200 million in July 2022. Shortly after that date, the new arena in the Spanish capital should be near completion. "In 2022, the stadium will be finished," president Florentino Pérez assured club members at the AGM held on Sunday.

New Bernabéu expected to generate €1 billion in revenue

Without a pandemic and with the new stadium at full capacity, the club has forecasted an increase in its income by about €200 million, according to Spanish outlet ABC. But for this to occur, Madrid plan to request a new loan related to the rebuild at the cost of an additional €160 million.

In order to construct the new stadium, Madrid have requested €575 million for a 30-year loan, at a fixed interest rate of 2.5%, which will mean a total cost (including interest) of €796.5 million. The loan also includes a three-year repayment period, which will see the LaLiga giants pay a fixed annual fee of €29.5 million from July 30, 2023 up until July 30, 2049.

The construction of the new stadium has coincided with the global coronavirus pandemic, which, due to the absence of spectators in the stadiums, may mean that the club will meet its deadlines and therefore lower potential costs.

Madrid estimate that the pandemic has reduced this year's expected revenue by a total of €300 million. The new stadium, which will be a multipurpose facility for concerts, commercial events and restaurant spaces, is expected to generate over €1 billion per year.