Los Blancos Renovations…

The renovations of the Santiago Bernabéu Stadium, home of Real Madrid, began in 2019 with the goal of modernizing the iconic venue while preserving its historic essence. Originally opened in 1947, the Bernabéu has long been a symbol of football excellence. The renovation project introduced major upgrades, including a retractable roof, a fully retractable pitch, a new 360-degree video scoreboard, expanded seating, improved VIP areas, and updated exterior design featuring a sleek, futuristic look. These changes aim to transform the stadium into a state-of-the-art sports and entertainment hub, ensuring it remains one of the world's premier football venues.

​JPMorgan Chase played a pivotal role in financing the extensive renovation of Real Madrid's Santiago Bernabéu Stadium. The financial arrangements unfolded in multiple phases to support the ambitious redevelopment project.​

The Finance…

In April 2019, Real Madrid secured a €575 million loan led by JPMorgan Chase and Bank of America Merrill Lynch, with additional participation from Banco Santander, Société Générale, and CaixaBank. Key Capital Partners served as the financial advisor and coordinator for this deal. The loan was structured in three tranches disbursed in July 2019, July 2020, and July 2021.

Key Terms:

• Loan Term: 30 years, maturing on July 30, 2049
  

• Interest Rate: Fixed at 2.5%
  

• Grace Period: 3 years on principal repayment
  

• Annual Debt Service: €29.5 million starting July 30, 2023
  

Collateral: No mortgage guarantees or financial covenants affecting club operations

Why Project Financing was beneficial for Real Madrid

Project financing was favorable for Real Madrid during the Santiago Bernabéu renovation (starting in 2019) for several key reasons:

1. Low Interest Rates:
   At the time, Europe (and much of the world) was experiencing historically low interest rates. Borrowing large sums of money was relatively cheap, making it a smart time to lock in long-term financing.

2. Separation of Risk:
   Instead of tying the debt directly to the club's main operations (like player transfers or day-to-day expenses), project financing isolated the loan to the stadium itself. This meant the risk was linked to the stadium’s future revenues — not the club’s balance sheet — protecting Real Madrid’s core business.

3. Projected Revenue Growth:
   The new Bernabéu wasn’t just going to be a better stadium — it was designed to create massive new income streams:

   • More VIP and hospitality areas (high-margin revenue)

   • Hosting concerts and non-soccer events because of new features. A state-of-the-art multi-layered system stores the retractable grass in climate-controlled chambers, allowing the stadium floor to quickly transform for different events.

   • Stadium tours, events, and retail year-round

   • Naming rights and sponsorships tied to the upgraded stadium

   This made lenders like JP Morgan confident that the stadium could generate enough revenue to pay off the loan comfortably.

4. Maintaining Competitive Edge:
   Clubs like PSG and Manchester City were being heavily funded. Real Madrid needed to modernize their facilities to stay competitive — not just on the field, but as a global brand. Financing allowed them to move quickly without sacrificing squad investment.

5. Control and Ownership:
   By using debt financing (instead of selling equity stakes or partnering with outside investors), Real Madrid kept 100% ownership and control of the stadium and the club.

In Summary

The renovation of the Santiago Bernabéu represents much more than just a stadium upgrade — it’s a strategic blueprint for the future of Real Madrid. By securing smart project financing led by JP Morgan, alongside key European partners like CaixaBank and Banco Santander, the club protected its core operations while positioning the stadium itself as a major revenue-generating asset. Innovations like the multi-layered, retractable pitch allow the Bernabéu to host a wide range of global events year-round, while new hospitality spaces, commercial zones, and a retractable roof turn it into a true multi-use entertainment hub. In the end, Real Madrid’s vision wasn't simply to modernize a historic stadium — it was to build a financial engine that ensures the club’s dominance on and off the pitch for decades to come.