The cost of the new Santiago Bernabeu

Real Madrid announced via its official channels that it has approved the financing for the remodeling of the Santiago Bernabéu.

The agreement was closed for 575 million, with a term of 30 years and a fixed interest of 2.5%. In addition, Los Blancos reported that they will have to pay a fixed annual fee of 29.5 million from 30th July 2023 until its expected date of completion 30th July 2049 (27 installments).

In other words, as 'AS' has published, if we multiply the annual instalment by the 27 instalments of the loan, the new Bernabeu will cost the club a total of 796.5 million euros.

This is Real Madrid's official statement on the agreement reached:

"The Board of Directors of Real Madrid, meeting this Friday 12th April 2019, in accordance with the authorization received from the Ordinary General Assembly of Commitments held on 23rd September 2018, has approved the financing for the remodeling of the Santiago Bernabéu Stadium for a total amount of 575 million euros, with a term of 30 years and a fixed interest of 2.5%", the statement begins.

"This financing has been structured through a loan with three tranches, July 2019, July 2020 and July 2021, which coincide with the needs foreseen for the payment of the works. The loan also includes a 3-year grace period for repayment of the initial amount, which will see Real Madrid pay a fixed annual instalment of 29.5 million euros, starting on 30th July 2023 and ending on 30th July 2049. Real Madrid has closed this deal without having to provide any type of mortgage guarantee or financial limitation on the management or indebtedness of the club, so that it can carry out its normal activity without being affected by the payment of the works", he adds.

"Thus, this reform will produce new income that will serve not only to finance the works, but also to significantly increase recurring income to maintain the sporting and economic leadership of the Club in the coming decades. This financing is the definitive step to set in motion real architectural innovation in our stadium, in the heart of Madrid, which will also improve the urban environment. A Santiago Bernabéu Stadium that is going to become a great avant-garde and universal icon, a reference in the 21st century, for more modern, more comfortable, safer designs for entertainment, with modern shops and the most advanced technology. It will be the great digital stadium of the future," it continues.

"The current Museum in the area of La Castellana will be expanded. A new interactive museum will be created with the latest virtual reality technologies. The experience of the Bernabéu Tour will be extended with the creation of a new panoramic perimeter tour around the whole stadium where there will be new leisure and restaurant opportunities, which will become one of the main tourist attractions for all those who visit Madrid", it continues.

"The financing has been structured by J. P. Morgan and Bank of America Merrill Lynch with the collaboration of Banco Santander and Société Générale. CaixaBank will act as agent for the operation", the statement confirms.

April 12, 2019