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Experiential services agency Legends has struck a 25-year commercial partnership deal with Spanish soccer giants Real Madrid to manage non-sporting events at the club’s Santiago Bernabéu stadium.
Legends is excepting to bring in annual revenues of between US$447 million to US$491 million through the agreement, of which the agency will receive 20 percent.
Real Madrid, the LaLiga leaders, had been earning US$168 million annually from this area before the pandemic.
The deal reportedly lets Legends stage various events, including music concerts, business trade shows, and conferences at the Bernabéu.
Based on Legends’ revenue projections, Real Madrid will receive a net of U$11 billion throughout the contract.
Real Madrid’s stadium is in the middle of a major redevelopment to make the property a major revenue generator beyond matchdays.
The project includes a retractable roof, premium hospitality zones, and a retractable pitch with work expected to be complete at the end of this year at the earliest.
Real secured an additional US$251 million loan to fund the redevelopment in December after obtaining an initial loan of US$642 million from JP Morgan and Bank of America in 2019, according to El Confidencial.
