So as to not distort the accounts presented to the club’s members Real Madrid didn’t include a loan for the renovation of the Santiago Bernabeu in their annual financial report according to Diario AS.
Either way, they have still only taken €100m of the €570m they asked for the renovation. Another €270m will be taken next July before the last €200m is taken the following summer, around which time the works should be near completion.
The loan conditions agreed when they requested the renovation of the Santiago Bernabeu was €575m for a term of 30 years with a fixed interest of 2.5%, bringing the total cost to €796.5m.
The loan also includes a three-year grace period for its repayment, meaning that Madrid pay a fixed annual fee of €29.5m from July 2023 until July 2049.
The work has coincided with the financial crisis precipitated by the Coronavirus pandemic, but given the absence of supporters it can be expedited with tighter deadlines and lower costs.
Madrid claim that the pandemic has reduced this season’s income by €300m, with the budget being at €617m as agreed last Sunday. The new stadium, with its multipurpose potential, is expected to have the potential to raise annual revenue to over a billion each year.