Florentino Pérez's ambition to make the Santiago Bernabéu the most modern and profitable stadium in Europe has turned into an economic nightmare. According to ABC España , the total cost of the renovation project is now approaching €1.163 billion , nearly three times the initial estimates. The venture, which began in 2019 with a budget of €575 million, quickly spiraled out of control with two additional loans of €225 million and €370 million taken out to complete the work. The objective was clear: to transform the Bernabéu into a cash cow, open 365 days a year, capable of hosting concerts, events, and lucrative VIP areas. But the reality has been quite different. After only sixteen concerts, noise complaints from local residents forced the club to suspend events, depriving Real Madrid of a crucial source of revenue.
Faced with this budgetary crisis, Florentino Pérez activated what the Spanish press calls a "financial lever ," namely the sale of 20% of the stadium's future revenue (concerts, parking, commercial space) to the American companies Sixth Street and Legends . In exchange, Real Madrid received €360 million in advance, a sum paid directly into the club's coffers. But according to ABC España , this sum should have been recorded as a debt, not as revenue. This accounting treatment would have allowed Real to present an artificially healthy balance sheet and avoid a reduction in the salary cap imposed by La Liga . A former club employee confides that, without this sleight of hand, Real would have recorded losses of over €40 million that year. This financial arrangement is now fueling criticism of the transparency of the Madrid president's management.
A giant with feet of clay
In this tense context, Florentino Pérez is reportedly considering a radical measure: transforming Real Madrid into a public limited sports company (SAD ), a status that would allow private investors to acquire a stake in the club. According to sources close to the management cited by ABC España , this idea, still taboo for many club members, is being studied to attract fresh capital and alleviate the colossal debt associated with the stadium. Real Madrid, owned by its members for over a century, would thus lose part of its identity, adopting a model closer to that of English clubs. Pérez knows that such a decision could cause an institutional upheaval, but faced with the financial crisis, he has few alternatives. The possibility of opening up the capital to American or Middle Eastern investment funds is already circulating in Madrid's business circles. As if the financial crisis weren't enough, Real Madrid is also going through a period of institutional turbulence. The general assembly scheduled for November 23rd could be suspended following a petition filed in the Madrid provincial court by a club member. This member contests the legitimacy of the current electoral list, claiming it includes up to 20,000 ineligible members.
In a document revealed by ABC España , the plaintiff claims that holding the General Assembly would "consolidate potentially void situations ," compromising the legality of the board's decisions. The court, which initially dismissed the complaint, has finally agreed to examine an appeal, threatening to paralyze the meeting intended to approve the 2024-2025 accounts. Such a suspension would be an unprecedented blow for Pérez, already weakened by the growing discontent of some of the club's members. Despite impressive operating figures, the club finds itself caught in a web of debt, litigation, and potential losses. The parking lots surrounding the Bernabéu, expected to generate €320 million over 40 years, have been suspended following legal action by local residents, even threatening the stadium's bid to host the 2030 World Cup final. Concerts, intended to be the club's new cash cow, have been abruptly halted. And the illusion of a self-financing model is crumbling as economic reality sets in. Behind the facade of luxury and trophies, Real Madrid is going through one of the most perilous periods in its modern history. With debt piling up and revenue streams drying up, the question remains whether Florentino Pérez can still save his dream, or if he will have to hand over the keys to the Madrid temple to foreign investors. In any case, the empire built by Florentino Pérez is faltering.
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