The management of Real Madrid has addressed reports regarding the cost of its stadium's renovation, the Santiago Bernabéu. In a recent appearance, the 1.3 billion euros invested were clarified, a figure that has sparked public debate. The refurbishment, aimed at adapting the venue to host concerts and other events, has been partially affected by municipal regulations and judicial decisions.
“"Some say the stadium started at 600 million and ended at 1.3 billion. That's not true. The first Bernabéu contract was for the roof, and that cost 600 million. After that, we built the hypogeum, which cost almost 400 million. And after that, we did the stadium and seat decoration."
The club's management emphasized that the investment was made in distinct phases. Initially, the stadium's roof accounted for a 600 million euro outlay. Subsequently, nearly 400 million euros were allocated to the hypogeum, an underground system that allows the pitch to be stored and transformed into a surface for events. Finally, the decoration and seat installation were addressed, completing the venue's modernization.
The high cost of the renovation is crucial to understanding the debt incurred by Real Madrid and the need to generate additional revenue through event organization. To this end, the club signed an agreement with investment group Sixth Street and the American entertainment conglomerate Legends Hospitality, which, according to the Financial Times, brought in 360 million euros for the club. In return, Real Madrid committed to ceding 30% of the profits from concerts and other events. However, neighborhood complaints and judicial decisions have halted concert organization, frustrating some of the initial plans that envisioned an event every six days.
Despite setbacks with large-scale concerts, stadium exploitation remains a crucial source of income for the club. Revenue from this concept and commercial agreements, excluding transfers, is projected to reach 402 million euros in the current season, representing almost a third of the entity's total income. Given the inability to host major concerts, Real Madrid is exploring other options for large-scale events, such as Christmas fairs or significant gatherings, like a potential visit from the Pope to the capital, with the Bernabéu being considered as one of the venues.
