Barcelona renegotiate deal to finance stadium revamp

MADRID : Barcelona are renegotiating the terms of a 1.5 billion euros ($1.59 billion) financial plan with Goldman Sachs to revamp their stadium and may have to repay the debt five years earlier than anticipated, according to a rating agency and a high-level club source.

Barcelona approved a 35-year debt plan in a referendum of club members in 2021 that would enable them to renovate their iconic but languishing Camp Nou stadium and its surroundings.

The preliminary debt structure has been revised, the Kroll Bond Rating Agency (KBRA) said in reports published on its website, with Barca to make a final repayment in 2047 instead of 2052 as previously agreed..

The original plan represented the only source of funding for the Nou Camp project. Under the amended structure, notes would be issued for 1.3 billion euros, with the remainder of the deal made up of a 200 million euros bank loan maturing in 2028, the KBRA report said.

KBRA said the revised structure included additional refinancing and interest rate risk and as a result it had downgraded the financing plan's rating from BBB+ to BBB, meaning it is less attractive to investors. 

A source at the club confirmed the revised debt structure but said the terms of the deal were still being negotiated with Goldman Sachs and that the definitive deal would be announced by March 31.

Goldman Sachs has not replied to a request for more information about the ongoing talks and the new terms.

Camp Nou is the largest football stadium in Europe and the fourth largest in the world by capacity with 99,354 seats but the club considers it no longer offers a full match-day experience for fans.

The club estimates the new stadium will allow Barca to generate 200 million euros of additional revenue