Still Attracting Investors, Barcelona Seals $1.3 Billion For Espai Barça Makeover

Continuing its bold ambitions and daring business despite remaining heavily in debt, Football Club Barcelona has secured €1.45 billion ($1.3 billion) in financing to cover its grand infrastructural redevelopment project, Espai Barça.

Drawing the money from 20 investors, including Goldman Sachs and JP Morgan, the funds mean the long-awaited construction on its stadium and the surrounding area—in the offering since 2014—will get underway once this season ends.

Barcelona anticipates the redevelopment will eventually make Spotify Camp Nou—the highest capacity arena in European soccer but fit for a revamp—a money-making centerpiece with over 100,000 seats. Indeed, Barcelona sees the stadium as a crucial pillar in forging much-needed revenue streams in the future.

Restructuring its finances and working towards longer-term repayments has helped Barcelona secure investment for this adventurous plan. Lately, the club has activated economic levers (selling club assets to generate funds) in return for income to compete on the field. However, this project—approved by club members—does not appear to follow quite the same model.

Instead, the club looks set to receive various payment installments over the next 24 years, with a grace period attached. And it’s confident about returning the money when the stadium renovations are finished, with it alone forecast to bring in around €247 million ($273 million) after completion, according to the club.

“Assets were not used as a guarantee, and a mortgage was not taken out on the stadium,” Barcelona confirmed in a statement on the milestone agreement and the logic behind it.

It added, “The project is essential in keeping FC Barcelona at the forefront of the sports world, is one of the foundations for the club’s economic recovery and future viability, and is a tool to enable the continuation of the governance model, whereby the over 146,000 Club members (who approved the motion) are its owners.”

The update coincides with arch-rival Real Madrid still refreshing its Santiago Bernabéu ground. But unlike Real, Barcelona will be moving to a new, temporary base at the Monjuic Olympic stadium next campaign as construction begins on its home—a fortress in Spain this season. Barcelona is due to move back in late 2024.

Regarding its brand, the developments come amid ongoing turbulence surrounding the club’s image due to the Negreira case, in which it made payments to ex-refereeing chief Enriquez Negreira between 2001 and 2018. Yet with further conclusions still to arrive, this is no concrete hindrance to its goals.

For all Barcelona’s financial headaches, its methods are enjoying some success. Having shaken off disappointment in European competition, it’s on course to win La Liga for the first time in four years and overcoming economic restraints by raising funds to spend its way from trouble—often on high-end players. Now it’s banking on even better days through borrowing and building big.

Barcelona still has to follow some rules, however. To return stronger, it must sell players and potentially more club assets to third parties for La Liga to authorize its transfer spending—perhaps even on legend Lionel Messi this summer. That will be hard enough for a team sometimes struggling to register its existing gems, like 18-year-old midfielder Gavi. Then again, this is Barcelona, and normality rarely applies.