Investment in stadium renovations could impact how Real Madrid approaches the transfer market.REAL MADRID
Real Madrid President Florentino Pérez "has decided that renovations to the Santiago Bernabéu will go forward despite the withdrawal of the project's sponsor," according to Orfeo Suárez of EL MUNDO. His decision means the club will initially assume the cost of €450M ($553.6M) -- which could rise to €500M ($615M) with a 10% diversion from the budget -- according to club sources. This "challenge will force the club to concentrate its investment in the coming years on the stadium, which could affect player signings and contract renewals." Real Madrid is, however, "continuing to search for a new sponsor to replace IPIC" and will ask the new sponsor to provide long-term financing to diminish the impact of amortization on the budget and "divide the renovations into independent phases." Real Madrid is seeking either a total or partial sponsor of the project, "which means it is possible the stadium's name could be changed in the short or medium term." The renovation work "will not begin before the end of the year" (EL MUNDO, 3/21).
