The cost of renovating the Santiago Bernabeu now stands at €1.76billion ($1.91bn, £1.51bn), Real Madrid’s interim accounts for the 2023-24 season have shown.
The stadium is expected to be paid off by 2053, representing an average annual cost of €66million ($71.5m, £56.6m).
The accounts provide the average fixed interest rates for the stadium work for the first time, which stands at 3.2 per cent.
The cost of the renovation before interest is €1.17bn ($1.27bn, £1bn), but this comprises of three separate loans, each with a different interest rate, resulting in the €1.76bn total.
Madrid are currently only re-paying the interest on the second and third loans, so as it stands their annual repayment cost is less than €66m.
A new €370m (£322m, $391m) loan to cover further spending was taken by Madrid in October, motivated by the project overrunning and the rising cost of materials. This has a 30-year repayment period, but the interest rate is unspecified. As a result, the total cost of the stadium could continue to rise. This third loan has a fixed annual cost of €26m ($28.3m, £22.3m).
A second loan for €225m ($243.9m, £193m) was taken in 2021, in part to fund works on a new retractable pitch system that was not part of the original redesign. This has a fixed interest rate of 1.53 per cent to be paid over 27 years, with a three-year grace period, so full repayment will start in June 2024. This has a fixed annual cost of €10.5m ($11.4m, £9m).
A first loan of €575m ($623.2m, £493.2m) was taken in 2019, with a fixed interest rate of 2.5 per cent payable over 30 years, again with a grace period of three years, so full repayment will start in November 2027. This has a fixed annual cost of €29.5m ($32m, £25.4m).
These first two loans were granted at interest rates considered favourable by industry expertsthe interest rate for this new loan will likely be higher due to market conditions.
During the Assembly of Compromisarios (Members), club president Florentino Perez assured members the annual costs would be “less than half of the annual profits that we plan to obtain after the completion of the works”.
Works on the stadium redevelopment began in 2019 and are expected to be completed in the spring. An official inauguration is planned to take place between the end of May and early June. Work had initially been expected to complete by the end of 2023, but this was pushed back.
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The renovation has included the introduction of the retractable turf, the retractable roof and a 360-degree video scoreboard.
Thanks to the retractable turf and roof, Madrid expect to bring in more revenue by hosting other sporting events. It was confirmed last month the stadium is set to host a regular season NFL game in 2025.The Athletic understands the agreement with the NFL includes the possibility of playing more games in the years following the first event.
(Florencia Tan Jun/Getty Images)
Guillermo began his career covering Real Madrid and the sports industry for Diario AS. He later moved to London and became AS and Cadena Ser correspondent. He has since returned to Madrid and joins us at The Athletic where he will deliver Real Madrid news, interviews, stories, and more.
