Real Madrid signs $380m deal with Sixth Street for Santiago Bernabeu management
Real Madrid have signed a contract to manage the Santiago Bernabéu stadium worth 360 million euros ($381 million), the club announced on Thursday. (More football news)
The deal was with investment firm Sixth Street and “experience company” Legends, which specializes in hosting sporting and other events and is partly owned by Sixth Street.
The US-based deal comes with Madrid set to sign Paris Saint-Germain striker Kylian Mbappé, who would arrive as a free agent but will be on a club-record salary. One of football’s biggest stars, 23-year-old Mbappé’s contract with PSG expires at the end of this season.
Real Madrid have said the money from the deal can be invested in “any club activity”.
Madrid haven’t signed any of the top players in recent transfer windows and currently hold the league’s highest spending limit at 739 million euros ($783 million).
The club won a record 35th Spanish league title this season and will be looking to lift a record 14th European trophy when they face Liverpool in the Champions League final on May 28 in Paris.
Sixth Street has acquired the right to participate in the operation of certain new Bernabéu businesses for 20 years, Madrid said. The exact stake the company will have was not immediately disclosed by the club.
Legends, meanwhile, “will bring its experience and knowledge in the operation of large stadiums and leisure centers, allowing the optimization of the management” of the stadium.
“This alliance with Sixth Street and Legends, world leaders in their respective disciplines, will be fundamental in providing unique experiences in a stadium where multiple events can be held throughout the year,” Madrid said in a statement. “This agreement reinforces our goal to continue to significantly increase stadium revenue from both sporting events and other types of events.”
Sixth Street said it manages more than $60 billion in assets worldwide and is also linked to the NBA’s San Antonio Spurs, as well as Airbnb and Spotify. Last year, he invested a majority stake in Legends, which was formed in 2008 from affiliates of the New York Yankees and Dallas Cowboys.
“Real Madrid’s Santiago Bernabéu is a sacred place in the world of football, and we are honored to join this partnership to invest in the innovative, long-term strategic vision that has guided the club’s consistent success throughout its storied history. “, said Alan Waxman. , co-founder and CEO of Sixth Street.
The Bernabéu is undergoing a major renovation, with a new roof, modern video screens and a retractable pitch in a project that was expected to cost nearly one billion euros ($1.05 billion). The goal was to complete it by the end of the year. Last season, the team played at the small Alfredo Di Stéfano stadium in the club’s training centre. Renovation work was accelerated as fans were not allowed due to the coronavirus pandemic.
Madrid rivals Barcelona will also renovate their Camp Nou stadium. He recently struck a naming rights deal for the venue with streaming company Spotify, estimated to be worth 400 million euros ($424 million) over 12 seasons.
Barcelona and Madrid have not signed up to the Spanish league’s deal with private equity firm CVC, which will yield around 2 billion euros ($2.1 billion) in investment for Spanish clubs. They say the deal gives CVC too much power over clubs’ television rights deals for the next five decades.