(Reuters) – Real Madrid have reached a 360 million euro ($380.95 million) agreement with Sixth Street to develop and operate new businesses at the Santiago Bernabeu stadium for 20 years, the LaLiga club said on Thursday.
The Spanish champions, who won a record-extending 35th LaLiga title in April, said the partnership included Legends, a premium experiences company that caters to sports and live venue organisations.
Sixth Street, which has more than $60 billion of assets under management, has experience in infrastructure and sports. It has invested a majority stake in Legends.
“As part of the long-term partnership, Real Madrid will receive approximately 360 million euros to be invested across any of the club’s activities,” Real Madrid said in a statement https://www.realmadrid.com/en/news/2022/05/19/strategic-agreement-between-real-madrid-sixth-street-and-legends.
“Through this alliance, Sixth Street acquires the right to participate in the operation of certain new businesses of the Santiago Bernabeu stadium for 20 years.
“In addition, Legends will contribute its experience and knowledge in the operation of large stadiums and leisure centers, allowing for the optimization of the management of the Santiago Bernabeu stadium.”
The agreement, which the club said would allow for multiple events to be hosted at the stadium throughout the year, was ratified at a meeting of Real’s board of directors on Wednesday.
“The transformation of the Santiago Bernabeu Stadium will be a turning point in the history of Real Madrid,” club president Florentino Perez said.
“This agreement strengthens the club’s goal of continuing to significantly increase the stadium’s revenues from both sporting and other types of events.”
The club’s general assembly approved a new 225 million euro loan in November, increasing the size of its structured finance deal with JP Morgan and Bank of America to 800 million euros.
That deal will enable the club to add a state-of-the-art retractable hybrid pitch that can be moved underground to a 24-metre deep greenhouse so the main venue can be used for other purposes, generating more revenue without spoiling the grass.
The Spanish club played last season at their Alfredo di Stefano training ground as the Bernabeu was refurbished, returning to the main stadium for LaLiga matches in September last year.
Real will be looking to secure a record-extending 14th Champions League title when they face Liverpool in the final in Paris on May 28.
($1 = 0.9450 euros)
(Reporting by Aadi Nair in Bengaluru; Editing by Ken Ferris)