Club will not seek naming rights partner for the revitalization of the Bernabéu Stadium; Has “great opportunities” in business without changing the name of the stadium.
Miami, Fla. (Thursday, July 25, 2019) – Kenneth Russo
What’s in a name? In the case of a famous one, a reason not to alter it.
One of the world’s most iconic football stadiums will not be adopting a corporate name. This news came from Real Madrid Club de Fútbol’s Global Head of Partnerships, David Hopkinson.
As reported in Spanish publication ReasonWby.Es, Hopkinson had been interviewed and asked about this ahead of the World Football Summit 2019. It was believed that Real Madrid would seek a stadium naming rights partner. He commented, “Anything is possible, but to put a corporate name on the stadium probably would be incorrect. There are places around the world that are iconic and must be respected.” (“Hay lugares en todo el mundo que son icónicos y deben respetarse”) He also added that Real Madrid enjoys an extraordinary assortment of income-generating opportunities that do not involve adopting a corporate name for the home of Los Blancos.
While the stadium’s name is not changing, many aspects of the stadium will be. The club is planning a complete transformation of the Estadio Santiago Bernabéu, which is expected to take until 2023 to finish.
Madrid’s ambitious plans for a “digital stadium of the future,” were made possible after securing loans totalling €575 million (£497 million/$641 million USD) in April, 2018 from two US-based financial institutions: Bank of America Merrill Lynch and JP Morgan. They will start repaying the loans in 2023 at a fixed 2.5 percent interest rate through 2049. The club will service an annual debt of €29.5 million per year on the project throughout the period.
Hopkinson, a Canadian, (and graduate of McGill University) was hired in summer of 2018, after having worked with Maple Leaf Sports and Entertainment (MLSE), where he was the Chief Commercial Officer. MLSE is the parent company of Toronto Football Club (MLS), the Toronto Maple Leafs (NHL) and Toronto Raptors (NBA). Explaining the overall business strategy of Real Madrid, Hopkinson said that Real Madrid believes the more it is able to internationalise its business, reputation, and fan base, in the process making the club a global enterprise, the more opportunities the club will have with sponsors around the world.
“Cuanto más podamos internacionalizar nuestro negocio, nuestra reputación, nuestra base de fans, para globalizar este negocio, más oportunidades tendremos con patrocinios en todo el mundo”, detalló.
The renovation will include a retractable roof, new services and experiences designed for fans, taking advantage of the latest in digital stadium technology.
While a football club can expect millions of dollars to have a corporate name on its stadium, in the case of Real Madrid CF, Hopkinson believes the benefit of not changing outweighs the increased revenue. Reaching that conclusion was probably also made easier by the fact that Real Madrid was looking for a naming rights sponsor but actually had difficulty attracting one. Potential sponsors were cautious to invest given the status of the stadium as one of the most famous in the world. It was thought, and altogether realistic to believe, that people would still refer to the stadium as the Estadio Santiago Bernabéu no matter what corporation sponsored the venue.
Photo Gallery (credit: Real Madrid CF)