FC Barcelona has closed a financing deal on its $1.6 billion Espai Barça renovation project, which will expand and upgrade the landmark Camp Nou stadium and other installations.
The financing comes from a total of 20 investors, according to the statement issued by the club. The club’s assets were not used as a guarantee, and a mortgage wasn’t taken out on the stadium.
The club’s board of directors and executive teams have been working on the planning and execution of the project with key partners, such as Goldman Sachs, JP Morgan, JLL, Pérez-Llorca, DLA Piper, Key Capital Partners, IPG 360 and Legends.
The renovation will kick off in June, once the season is over, and be carried out by the Turkish construction company Limak. With almost 100,000 seats, Camp Nou is already the largest stadium in Europe and the 12th largest in the world, but the project will raise the stadium’s capacity to 105,000, making it the fifth largest, and a roof will cover the structure. Last year, music streaming service Spotify acquired the naming rights to the stadium for the next four years in a deal worth $310 million.
Last year the blaugrana began the construction of a new stadium for its youth and reserve teams at the site of its training ground. The project also includes a new arena for the club’s basketball team and green spaces around the stadium for the public.
Barcelona will repay the loan once work has been completed using income generated by the stadium. The project is forecast to wrap by November of 2024 and produce roughly $271 million (€247 million) per year thereafter. The loan will be repaid in tranches at “five, seven, nine, 20 and 24 years, including a grace period,” the club said.
Espai Barça project is the most important renovation and modernization project carried out in Catalonia since the 1992 Olympic Games, according to Limak president Nihat Ozdemir. The renovation’s 2024 completion date will coincide with the 125th anniversary of the club. The renovation will cost $414 million (€360 million).