Madrid economic lever amount used for the new stadium
Madrid economic lever amount used for the new stadium
Madrid economic lever amount used for the new stadium
Barcelona came under fire this summer, for using ‘economic levers which were actually asset sales, but it has now been revealed that Real Madrid did the same.
Over the next 25 years, Barcelona sold just under 50% of Barca Studios and 25% of their La Liga television rights. The latter was a collaboration with the American investment firm Sixth Street.
Florentino Perez confirmed Los Blancos’ agreement with the same company during Real Madrid’s General Assembly, as reported by Diario AS.
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“In economic terms, the pandemic cost us €200 million in income.” We were able to close the accounts in the black for the 2019-20 season thanks to everyone’s generous and drastic salary reduction.”
“It was nearly the same in 2020-21, given that we could only rely on normal attendance at the stadium, which was already reduced for stadium work, beginning in late February.” We recently reached an agreement for the next 20 years worth €360 million with Sixth Street and Legends, the best stadium manager in the world.”
According to Sport, who obtained the information from Swiss Ramble, the agreement was in exchange for 30% of the revenue generated by the new Santiago Bernabeu stadium. Los Blancos would have made a €127 million loss rather than a €13 million profit last season if not for that deal.
Naturally, this should be interpreted in context. Real Madrid will claim that a part of the agreement with Sixth Street and Legends allows a company with expertise in stadium management to manage the stadium and extract the most revenue overall.
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In the meantime, that is not the case with Barcelona’s TV rights deal, and there is no doubt that their actions this summer were motivated by a desire to increase their salary margin and recruitment options.
Joan Laporta, on the other hand, can argue that in the case of Barca Studios, the Blaugrana will be able to improve their output from a subsidiary that was previously losing money.
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