Notes

Real Madrid, Sixth Street and Legends seal ?360m Bernabeu deal
Real Madrid, the Spanish soccer giants and winners of this year?s top-tier LaLiga, have ratified a partnership with investment firm Sixth Street, along with with US sports marketing agency Legends, by which both firms will secure an input into any future activities and operations at the club?s iconic Santiago Bernabeu stadium, that is in the process of redevelopment.
Real Madrid, the Spanish soccer giants and winners of the year?s top-tier LaLiga, have ratified a partnership with investment firm Sixth Street, along with with US sports marketing agency Legends, through which both firms will secure an input into any future activities and operations at the club?s iconic Santiago Bernabeu stadium, which is along the way of redevelopment.

The partnership, by which Real will receive approximately ?360 million ($381.3 million), aims to ?elevate the Santiago Bernabeu as a unique venue and an internationally benchmark for leisure and entertainment?, in accordance with a joint announcement.

Sixth Street has secured rights to participate in ?the operation of certain new businesses of the Santiago Bernabeu for twenty years?, while Legends (where Sixth Street took many stake in January this past year) will ?contribute shervin mirhashemi in the operation of large stadiums, attractions and event spaces to optimize the management? of the 80,000-capacity arena.

The deal between Real Madrid and Legends ? which includes close ties to club president Florentino Perez ? was first reported in late January, with the reports at that time suggesting that Key Capital, a Spain-based private equity firm, was leading the negotiations with respect to the LaLiga champions.

The Bernabeu is currently being redeveloped in a project that the club is looking to complete next year and is costing between ?800 million and ?900 million.

Real already have an existing relationship with Legends and enlisted the agency in 2020 to run their merchandising operations.

Under the terms of that partnership, Real will launch a new online store, relaunch three official club stores in the Spanish capital, and develop a flagship megastore at the Bernabeu. The brand new megastore has been built within the ongoing redevelopment of the stadium.

Legends additionally reopened three official Real stores in downtown Madrid.

The firm spent some time working with Real since 2018 when it had been appointed to supply strategic insight and guidance into optimizing commercial opportunities in the renovation of the Bernabeu.

The deal in which Sixth Street took many stake in Legends last January, meanwhile, saw the investment firm snap up 51% of Legends, valuing the agency at around $1.35 billion in total.

Other investors in the Legends partnership group include co-founders YGE Holdings, an affiliate of Major League Baseball's NY Yankees, and Jones Concessions LP, a joint venture partner of NFL American football's Dallas Cowboys.

Perez has now said, commenting on the deal ratified yesterday: ?This alliance with Sixth Street and Legends will be fundamental in providing unique experiences in a stadium where multiple events could be hosted throughout the year ? This agreement strengthens the club?s goal of continuing to significantly increase the stadium's revenues from both sporting and other types of events.?

Real are hoping to recoup the huge outlay allocated to renovating their house by staging regular events at the Bernabeu outside of soccer matches with plans for the venue to most probably for use 300 days per year.

There will also be a skywalk around the stadium, with a few of Spain's biggest restauranteurs invited to make proposals for those spaces, while new VIP zones will also have over 25,000 square meters to create premium hospitality spaces.

The stadium will include a retractable roof to stage indoor events, as well as a retractable turf which means the playing surface for the club?s matches will never be affected.

The redevelopment will, in addition, expand the stadium?s capacity to around 100,000 for music concerts and other events with standing areas.

With these enhancements at heart, Real are projected to create in ?250 million more on an annual basis when compared to figures they were bringing in from the Bernabeu pre-pandemic.

Alan Waxman, co-founder and chief executive of Sixth Street, added: ?The flexible, solutions-oriented capital and comprehensive capabilities provided by our team at Sixth Street, combined with the deep expertise Legends offers in venue and sports brand operations, will support Real Madrid in its mission to compete and remain a leader in global sports for many years to come.?

Shervin Mirhashemi, Legends? leader, also commented on his firm?s continued relationship with Real Madrid, saying that ?with this long-term management relationship, Legends continues to grow its global footprint, while investing in regional expertise with best-in-class brands worldwide.?

Plus the Yankees and Cowboys, Legends, launched in 2008, is a partner of the likes of soccer giants Manchester City, NBA basketball's LA Clippers and Detroit Pistons, and SoFi Stadium, the house of the NFL's LA Chargers and LA Rams.

Additionally it is the sponsorship sales agent for the 2028 Olympic Games in LA.
Read More: https://www.sportcal.com/news/real-madrid-sixth-street-and-legends-seal-e360m-bernabeu-deal