American Company Legends agrees to pay Real Madrid €400 million a year
Real Madrid and Florentino Perez have looked to guarantee a new stream of cash flow for the next 25 years. According to a report from MARCA and with details cited from Voz Populi, US based company, Legends, an expert in sport and event based experiences, has guaranteed Real Madrid €400 million a year in return for 20% of the new Santiago Bernabeu profits. It is expected that the agreement is for all non-football related events and experiences at the soon to be remodeled stadium.
The deal will see Real Madrid bring in €250 million more on annual basis vs the figures they were bringing in from the Santiago Bernabeu in pre-pandemic environment. Legends has guaranteed the miscellaneous events will bring in €400 million a year, and if not, will pay Madrid the difference. The US based firm believes they can guarantee the figure because they expect profits far in excess of €400 million a year.
This is not the first deal between Real Madrid and Legends. The US company already has an agreement in place to oversee the retail and digital strategy of the club and will launch a new club store as part of the Santiago Bernabeu renovations.
Legends is a company that has worked with the New York Yankees and the Dallas Cowboys and is owned by an investment firm, Sixth Street, who were early investors in AirBnB. Both Real Madrid and Legends work together to “create innovative, profitable and fan-focused experiences ”. One of the club’s highest priorities for the new stadium is to create an immersive experience that draws consumers and generates income outside of the general matchdays.
The goal of Florentino Perez is to see Real Madrid become the first club to generate 1 billion euros in revenue.
