Penal Madrid

DonAK

President of FC Barcelona
NBA and NFL games, there won't be that many, just a handful at most. Concerts and everything else, sure, but still, paying 400m a year? Are they expecting to make at least 1 billion a year of revenues from hosting these events to justify paying Real Madrid that much a year?

I don't think the 400m report is true.

The NFL are planning to hold more games overseas in the future. We'd be smart to get into that btw.
 

Luftstalag14

Culé de Celestial Empire
I don't think the 400m report is true.

The NFL are planning to hold more games overseas in the future. We'd be smart to get into that btw.

Yes, hence my disbelief we won't get the retractable pitch. :banghead:

Anyways, I read that Germany and England are NFL's priorities now, Spain is down the road. I wonder how may games they can really hold outside of the US. Won't be that many I think.
 

DonAK

President of FC Barcelona
Yes, hence my disbelief we won't get the retractable pitch. :banghead:

Anyways, I read that Germany and England are NFL's priorities now, Spain is down the road. I wonder how may games they can really hold outside of the US. Won't be that many I think.

16 games.

With the NFL negotiating an extra game in their CBA I bet that extra game will eventually become a neutral one for both teams down the road where it?ll be played in Mexico City, London, Munich, Madrid and possible other venues.
 

Luftstalag14

Culé de Celestial Empire
If I understood the following 2Playbook article correctly, the deal with Legends seeks to double Real Madrid's revenues generated from activities from Bernabeu from 200m per year currently (including revenues from match day, hospitality and other activities) to 400m to 440m a year, not getting 400m or of new money a year from Legends. Very ambitious goal already. Otherwise, 400m a year of new/additional revenue for 20% of Bernabeu's business would mean they estimate the new Bernabeu alone would generate 2 billion a year or revenues? That makes no sense.

https://www.2playbook.com/clubes/re...-20-negocio-bernabeu-en-25-anos_6692_102.html

Camp Nou generates around 200m for us as well and our goal with the Nou Camp Nou and the Nou Palau is to get an additional 150m or so of new revenues. If both are successful, we will be a bit behind Real Madrid but I think we have room to grow to eventually catch up.
 

Joan

Well-known member
Sounds very fishy to me. 400m a year to Madrid just to hold events? Will Legends even be able to recoup half of that money, even if they hold an event for every single day of the year?

I just glanced over it but if I got it right, Legends guarantee that the total revenue from holding events will be at least 400m per year. The expenses are deducted and they share the profit (20% to Legends, 80% to Madrid).

In the same article I read the 400m figure is mentioned alongside usual Bernabeu revenue and I didn't understand if the deal with Legends takes match day revenue and other activities in account.

If 400m is total revenue, there are costs (let's say 25% for the sake of the argument), 80% of 300 is 240m.

My madridista friend tends to see it this way: additional 400m from non-Real related activities, 100m deducted for costs, additional 240m. This way Real's total Bernabeu revenue would be close to 400m and I don't see that happen.

Did you happen to find the right explanation of the deal?
 

Luftstalag14

Culé de Celestial Empire
I just glanced over it but if I got it right, Legends guarantee that the total revenue from holding events will be at least 400m per year. The expenses are deducted and they share the profit (20% to Legends, 80% to Madrid).

In the same article I read the 400m figure is mentioned alongside usual Bernabeu revenue and I didn't understand if the deal with Legends takes match day revenue and other activities in account.

If 400m is total revenue, there are costs (let's say 25% for the sake of the argument), 80% of 300 is 240m.

My madridista friend tends to see it this way: additional 400m from non-Real related activities, 100m deducted for costs, additional 240m. This way Real's total Bernabeu revenue would be close to 400m and I don't see that happen.

Did you happen to find the right explanation of the deal?

No, I haven't seen any clear explanations so far, at least not from the Spanish media outlets that I have seen.

I can't imagine Legends or anybody being able to generate 400m extra revenue out of Bernabeu, in addition to the 200m Bernabeu is already generating currently (matchday, hospitalities and hosting events). I mean, sure, potentially hosting a few NFL and even NBA games a year (they won't all be in Madrid), some concerts, conferences etc. and retail stores, how can they generate 400m extra? I doubt a venue that is dedicated full-time to those stuff all year round, without the interruption of football games will generate 400m of revenue a year. There won't be enough events for Bernabeu to host every single day and other than tourists (which are not that many in Madrid), who wants to go shopping at Bernabeu? I remember it is located in the middle of a street surrounded by some office buildings, kind of in the middle of nowhere. Of course I could be wrong here.

After reading that 2Playbook article, I thought Legends promises to generate 400m to 440m a year in total out of Bernabeu and they will charge 20% of it, which means Real Madrid get to take home between 320m to 352m a year, which is great for them already. If it is an additional 400m or so a year on top of the 200m it is already generating for them, then Real Madrid will blow every other club out of the water in Europe and around the world. I wonder if it is that great, why other clubs have not hired Legends to deliver this type of income.
 

Luftstalag14

Culé de Celestial Empire
He went full Barto back in the day with Galacticos.

He learned from his mistakes though.

So Barto back please?

No, not that, I am referring to generally how well Florentino manages his club all-around, exploiting business potentials to bring in revenues to beef up their position and solidly their lead. Transfer-wise, they have been going after a lot of younger players and some started paying off already, like Vinicius.

He is a real business mogul who knows what he is doing to build a club.
 

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