Real Madrid President Florentino Pérez "will have to use his imagination to finance the team's massive renovation of the Santiago Bernabéu," according to Agustín Marco of EL CONFIDENCIAL. Pérez "has had to turn down an issuing of bonds with which he was going to cover half the cost of the remodeling of the stadium." This "happened when the club was unable to guarantee its solvency to investors." Sources from banks that Real "had contacted" hoping to issue €200M-€250M ($271M-$339M) in bonds indicated that "this option has now been ruled out." The "root problem" is that Real is not an Anonymous Sports Society (SAD), a "business with shareholders." It is "not that Real Madrid lacks financial solvency -- but the doors to capital markets only are open to businesses that are classified differently." A "good example of this is Pérez's construction company, ACS, which cannot issue bonds either" (EL CONFIDENCIAL, 6/16). In Madrid, Pablo Polo reported Real's idea is that the stadium "will in the future become a bigger source of revenue." The club's objective is to "close the stadium and create an infrastructure and services that will generate extra revenue." The stadium renovation project aims to increase revenue by €52M ($70M) per season thanks to "a hotel, a wider offering of VIP boxes and an unprecedented sponsorship offer." The renovation, which is expected to be completed by '17, "will convert the stadium into not only an architectural icon, but also a retail center with shops and restaurants" (MARCA, 6/17).
