Real Madrid secure €360m investment via partnership with US firm Sixth Street

Real Madrid have accepted a 360 million euro ($381 million) investment from US firm Sixth Street in return for the right to participate in commercial ventures at the redeveloped Santiago Bernabeu stadium, the club announced on Thursday.

The deal was ratified by the Real Madrid board on Wednesday. In a statement, the club said the deal was aimed at “making the Santiago Bernabeu stadium a unique place and a global benchmark for leisure and entertainment”.

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The €360m could ‘be invested in any club activity’ which would include transfers to strengthen the first team, although the club did not provide details on how and when. the influx would come.

In return, Sixth Street – a San Francisco-headquartered global investment firm that has previously invested in Spotify, Airbnb and the NBA’s San Antonio Spurs – will be involved in tapping new businesses at the Bernabeu over the next few years. next 20 years.

Work on the new Bernabeu, which cost around 800 million euros ($847 million) and will include a retractable roof and pitch, is expected to be completed by the end of 2022.

The clubs Promotional material included footage of the stadium hosting NBA and NFL games, as well as tennis tournaments and concerts, as it seeks to significantly increase the Bernabeu’s revenue streams.

Since January 2021, Sixth Street has been the majority shareholder of the “premium experiences company” Legends, which has already been working with Real Madrid on its merchandising since 2018 and “will bring its experience and knowledge in operating large stadiums and leisure centres,” the club said.

Legends was founded in 2008 by affiliates of the New York Yankees and Dallas Cowboys, and has already entered into partnerships with numerous sports teams and venues, including Manchester City and LAFC.

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