Real Madrid, a European footballer, signed a deal in which US-based investment company Sixth Street, which will buy a 30 percent stake in the team’s stadium operations.
The announcement on Thursday came amid speculation among managers that Real Madrid, the 13-time European champion, could complete a deal to sign Kylian Mbappé, one of the most sought after players in world football, as a free agent for a contract that could land him. he is the highest paid athlete in Real history.
Under the terms of the contract, Real, who went on to win the 35th Spanish title this month, will have no restrictions on how they spend their money. The capture of Mbappé will be a coup for Real, who have been chasing him since failing to persuade his current club, Paris St.-Germain, to accept a $ 200 million offer from him last summer.
The deal between Real and Sixth Street, for which the team will receive approximately $ 380 million, also includes Legends, a US sports and hospitality event management company that is partly owned by Sixth Street. The joint venture will last for 20 years and will be run by a joint venture that will have all the revenue within Real Stadium, with the exception of season ticket sales.
The investment is part of Real’s latest attempt to boost new sources of revenue from its famous $ 1 billion stadium, where games will be played on a viable stadium.
“The transformation of the Santiago Bernabéu Stadium will be a turning point in the history of Real Madrid,” Real president Florentino Pérez said in a statement. “This agreement strengthens the club’s goal of continuing to increase stadium revenue from sports and other types of events.”
While Real remains a major player in Spanish football and will take part in the Champions League final once again next week, it has been under increasing pressure to continue making changes in the world of football. Despite generating more wealth year after year than any other football team, the team has struggled to compete for the best talents with clubs backed by Arab states and pocket-sized billionaires. Turning the Bernabéu into what club officials have compared to the Madison Square Garden version could help keep muscles in the market.
The deal also marks the Spanish domestic league, La Liga, signed by another investment fund, CVC Capital Partners, which Real rejected and sued. CVC agreed to part with more than $ 2 billion in compensation for nearly 10 percent of the league’s advertising revenue for 50 years, a price that Real – and another major league-sponsored team, Barcelona, as well as members owned by Athletic Club Bilbao. , the thoughts were very steep.
True officials have stated that unlike the plan, the layout with Sixth Street, which also owns the NBA portion of San Antonio Spurs, is limited to an investment fund sharing profits, not revenue, from the project.
“Real Madrid’s Santiago Bernabéu is a sacred ground in the world of football, and we are honored to join this partnership to invest in the long-term strategic vision innovation that has guided the club’s consistent success over its historic history,” Alan Waxman said. . , co-founder and chief executive of Sixth Street.
Real benefited from the tragedy by moving to its training ground when supporters were barred from attending public events. It returned to the field this season although construction work is underway. Renovation of the stadium is expected to be completed on time for the start of the 2023-24 season.
The team’s finances are largely controlled even though the stadium debt is around $ 1 billion. Services cost about $ 40 million a year. Revenue from Sixth Street will mean the club’s short-term debt will be scrapped and replaced with $ 260 million available to use.
The money could allow Real to add more if they can get Mbappé. The striker said recently that he is close to announcing his plans for next season. PSG, his current club, have offered him an offer to add a deal worth more than an offer from Real. But Mbappé has made several comments expressing his desire to play for Madrid, the center and team that has been attracting the best talents of the game.