Real Madrid Announce €575m Loan Has Been Secured to Fund Redevelopment of Santiago Bernabeu
The Real Madrid Board of Directors have announced the funding plan put in place for the redevelopment of the Santiago Bernabeu.
Los Blancos' home currently seats 81,044 supporters when at full capacity, but has failed to undergo any significant renovations for a number of years.
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The club announced on their official website that they will loan a total amount of €575m over the next 30 years, at a fixed interest rate of 2.5%.
The key aspect of the agreement for fans of the club is that Real Madrid have completed the deal without having to provide any type of mortgage guarantee or financial limitation on the management or indebtedness of the club, so that it can continue to operate as normal without being affected by the payment of the works.
In simple terms, what this means is that the cost of the redevelopment will not affect Zinedine Zidane's transfer plans this summer with the manager, along with President Florentino Perez, aware that the club need a major overhaul of their playing squad.
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With reports that Los Blancos are attempting to sign the likes of Eden Hazard and Paul Pogba this summer, the cost of improving the Bernabeu was always thought to be a potential problem in their ability to finance these mega-money deals.
However, with Real now assured that their operational costs will not be affected, they will be able to continue their pursuits of the two superstars, along with other signings, this summer.
They do not have a limitless budget though and players will be moved on in the upcoming window to create space in the squad, and the club's bank account, for the new arrivals.
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Chief among those expected to leave is Gareth Bale, with Real reportedly putting a price tag of £113m on the 29-year-old.
Bale has been linked with multiple clubs across Europe including Manchester United, Chelsea and Bayern Munich and, with the Welshman not in Zidane's plans next season, getting a huge transfer fee for him, as well as clearing his €26m-per-year salary from the wage bill, is seen as crucial within the club to allow them to complete their work this summer.
The likes of Marcelo, Toni Kroos and Luka Modric are also due to be available this summer although France centre back Raphael Varane is now expected to stay with Zidane back in charge.
