Real Madrid can begin renovations on its 71-year-old Santiago Bernabeu stadium this summer after securing approval for the project’s funding.
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The Spanish giants announced in a press release that the Real Madrid board of directors approved a $650 million loan to finance a massive renovation project to the club’s home stadium in the heart of Madrid. It’s unclear in the press release when the renovations will be completed.
Starting in 2023 until 2049, Real Madrid will pay $33.4 million in debt payments to pay back the loan with a very low, 2.5 percent interest rate. The low interest rate was part of the reason why Real Madrid president Florentino Perez pushed for this deal, Perez remarked in the past. In addition, Real Madrid projects the new renovations will bring in an additional $170 million in revenue, which would more than cover the debt costs.
Originally announced publicly in September 2018, the renovations will add a new steel facade around the stadium, a retractable roof over the field plus a permanent roof over the fans in the seats, as well as other technological upgrades. The club will also be able to expand its club shop and club museum.
Part of Real Madrid’s motivation to complete the renovations was likely, along with good financial conditions, the fact that Barcelona is undergoing its own renovations at the Camp Nou which will also bring that stadium into the 21st century. In addition, Atletico Madrid just opened across town the brand-new Wanda Metropolitana Stadium.