The new Bernabéu, looking to help generate over €1,000M profit for Real Madrid
In order to boost the income of the newly renovated stadium, Real Madrid have teamed up with Sixth Street and Legends to help maximize profit.
The new Santiago Bernabéu, barring no last minute hiccups, is expected to be fully operational as of the 2023-24 season with the war in Ukraine having impacted on certain supply chain issues relating to materials. Real Madrid hope that the new stadium will be instrumental in seeing the club generate more than one million euro in revenue and this alone would mark a significant uplift to the club’s finances after their last (non covid impacted financial year) which saw the club generate €822,000.
To help in achieving this goal the club have enlisted the services of Sixth Street and Legends. The first is an investment fund that owns 51% of the second, with Legends being a company specializing in the operation of large-scale sports venues. Madrid received 360 million euro after concluding the deal with Sixth Street and in exchange, the LaLiga club will give Sixth Street 30% of the profits generated by the new Santiago Bernabéu thanks to the work of Legends during the next 20 years.
“Hallowed ground in world football”
Upon concluding the agreement with Sixth Street, Madrid president Florentino Perez stated: “The transformation of the Santiago Bernabéu Stadium will be a turning point in the history of Real Madrid. This alliance with Sixth Street and Legends, world leaders in their respective disciplines, will be fundamental in providing unique experiences in a stadium where multiple events can be hosted throughout the year.”
“Real Madrid’s Santiago Bernabéu is hallowed ground in the world of football, and we are honored to be joining this partnership to invest in the innovative, long-term strategic vision that has guided the Club’s consistent success over its storied history,” said Alan Waxman, Co-Founder and CEO of Sixth Street.
Earlier this summer Sixth Street facilitated one of the famous ‘levers’ or plancas activated by Barça, by exchanging 207.5 million euros for 10% of the Barça television rights for the next 25 years.
Legends now boasts Real Madrid as one of their official partners on their corporate website and the company also oversee the likes of the So-Fi stadium in Los Angeles, the Tottenham Hotspur Stadium, and Allegiant Stadium in Las Vegas. The company also works as a partner with diverse sporting institutions as baseball’s NY Yankees, NFL team Dallas Cowboys, UFC and England Rugby.
Florentino Pérez’s aim is to turn the new Santiago Bernabeú into a unique space, with events taking place 365 days a year (concerts, basketball games, NFL games...). and it’s felt that the triple alliance with Legends and Sixth Street should be the ideal springboard to make this a reality.