Assessing the Importance of the Santiago Bernabéu Renovation

Yan Chit Andrew Song

Shanghai High School International Division, Shanghai, 200231, China

Keywords: Santiago Bernabéu Stadium, Real Madrid, Economic Impact, Stadium Renovation.

Abstract: The Santiago Bernabéu Stadium, home to Real Madrid, underwent a €1.17 billion renovation aimed at

modernizing its facilities while preserving its rich heritage. This study analyzes the economic, cultural, and

urban impacts of the renovations, using quantitative data from Real Madrid’s financial reports and qualitative

insights from urban development literature. Results reveal a 27% increase in total club revenue during the

2023/24 season, with stadium-specific income rising by nearly 120% to €310 million. Enhanced features,

such as a retractable roof, foldable pitch, and upgraded hospitality offerings, have transformed the stadium

into a multipurpose venue, hosting diverse events and attracting record fan engagement. Additionally, the

renovations have elevated the Bernabéu as a cultural and architectural icon in Madrid, boosting local

commerce and tourism. While construction faced cost overruns and delays, the long-term benefits underscore

the value of strategic infrastructure investments in the sports industry. The findings highlight the Bernabéu’s

success as a model for multifunctional stadiums, merging financial performance with cultural significance.

1 INTRODUCTION

Real Madrid’s Santiago Bernabéu stadium was

named Chamartín Stadium until the 1950s to honor

Club President Santiago Bernabéu. Since its

inauguration in 1947, it has undergone numerous

modifications and expansions (Bolz and Krüger,

2023). The stadium has served as the backdrop for

countless historic moments, including UEFA

Champions League finals and FIFA World Cup

matches. Over the years, its capacity and facilities

have adapted to accommodate the growing fan base

of Real Madrid. Today, the stadium stands firm as one

of football’s cathedrals, a modern landmark in

Madrid, to the most successful football club of all

time. From the late 2000s up until the early 2010s,

Real Madrid’s total income grew significantly while

stadium regenerated income stagnated. This meant

that the Bernabéu could no longer keep up with the

rest of the club financially. In response, club

President Florentino Pérez announced renovation

plans for a new stadium: a stadium suiting the greatest

club in the world. In 2014, the modernization project

for the Santiago Bernabéu Stadium was awarded to

the architectural firm GMP, working alongside

Spanish partners L35 and Ribas (Arquitectos, 2015).

As of 2023, Real Madrid announces and increasing of

renovation costs with the total cost reaching 1.17

billion Euros. The ongoing renovations aim to

modernize facilities while preserving the stadium’s

rich heritage, much like the analysis of stadium

developments that stress the importance of

adaptability in urban landscapes (Scott, 2015). This

study examines the economic, cultural, and urban

impacts caused by the Santiago Bernabéu

renovations. The study will highlight how the

renovations have enhanced Real Madrid’s revenue

streams, improved their fan engagement, and elevated

the stadium as a cultural landmark in Madrid, through

analyzing financial data from Real Madrid’s reports,

data from attendance statistics, and qualitative

insights from local commerce and urban development

literature. These findings contribute to the broader

discussions on the significance of multi-functional

sports venues in driving financial sustainability and

urban revitalization (Rilipe et al., 2022).

2 METHODOLOGY

Quantitative data were collected from Real Madrid’s

annual financial reports, tracking key revenue trends

before and after the renovation. Metrics included

stadium-specific operating income, total revenue, and

earnings from non-football events hosted at the

venue. Attendance statistics for the 2023/24 LaLiga

Song, Y. C. A.

Assessing the Importance of the Santiago Bernabéu Renovation.

DOI: 10.5220/0014085800004942

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on Applied Psychology and Marketing Management (APMM 2025), pages 123-126

ISBN: 978-989-758-791-7

123

season were also analyzed, focusing on average

attendance, total attendance figures, and capacity

utilization rates. These figures provide insights into

the extent to which the renovations have influenced

fan turnout and engagement.

The qualitative analysis involved several

complementary methods. Reports from local

newspapers and interviews with business owners in

the vicinity of the Bernabéu were reviewed to

understand the impact on local commerce. Finally,

cultural and urban development literature

contextualized the stadium’s role within Madrid’s

identity and urban fabric.

3 RESULT

3.1 Economic Benefits

The renovations of the Santiago Bernabéu Stadium

have resulted in economic benefits in enhancing Real

Madrid’s financial performance. During the 2023/24

season, Real Madrid made history as the first-ever

football club to generate over € 1 billion in total

revenue, marking a 27% increase from the €843

million earned the previous year. Notably, income

from stadium operations surged from €140 million

in the prior season to €310 million, a near 120%

increase, which alone matches the combined stadium

income of the previous three years (Madrid, 2024).

Beyond Real Madrid’s football matches, the

stadium’s new multipurpose capabilities have

expanded its revenue streams. The new Bernabéu

incorporates a retractable pitch that can enclose the

stadium, creating an incredible atmosphere, and also

a foldable pitch that can store the turf underground

when not used. These innovations significantly

enhance the stadium’s functionality, allowing the

Bernabéu to host concerts, corporate events, and other

non-sporting activities that increase its operational

scope. This shift reflects a broader trend in the

industry of sports infrastructure, where venues are

increasingly designed to function as multi-functional

stadiums that can be utilized during the sport’s

offseason in order to maximize income (Rossi and

Capasso, 2020). Future projections suggest that the

310 million Euro figure from above could reach up to

400 million in stadium income once the stadium

becomes fully operational. This increase can be

attributed to the improved hospitalities of the

stadium, as well as various technological

advancements. Real Madrid has also signed a €360

million deal partnership deal with investment firm

Sixth Street and Legends, which guarantees Real

Madrid 70% of revenues from new commercial

activities (Stadium Redevelopment, 2024).

3.2 Impact on Fan Engagement

Transformative Impact on Fan Engagement: The

renovation has also had a transformative impact on

fan engagement. The Santiago Bernabéu recorded the

highest average attendance in LaLiga during the

2023/24 season, achieving a remarkable 92%

attendance rate and hosting the season’s peak viewer

count of 76,732 during a single game. Real Madrid’s

plans to expand the stadium’s seating capacity to

85,000 will further enhance its status as one of the

largest professional football venues globally (Prensa,

2024). In addition to increasing capacity, the

renovations have greatly improved the matchday

experience. Features such as a 360-degree scoreboard

and state-of-the-art VIP lounges cater to diverse

audience segments, from casual spectators to high-

net-worth individuals seeking premium hospitality.

These innovations not only attract a broader fan base

but also encourage repeat attendance, ensuring a

consistent revenue stream from ticket sales and

related activities.

3.3 Cultural Landmark

Culturally, the renovated Santiago Bernabéu serves as

a cultural landmark for the city of Madrid. Most of

the world’s major sports stadiums are located on the

outskirts of cities. The Bernabéu is an exception as it

is located adjacent to Madrid’s main artery. The

renovation has elevated the stadium’s architectural

significance with the L35 designers giving the

stadium an iconic, futuristic façade made of metal,

contrasting with the rest of Madrid (Bolz and Krüger,

2023). The renovated Bernabéu also makes it a

popular tourist destination. Real Madrid’s stadium

tour has attracted thousands of fans every week to

visit the newly constructed greatest stadium in the

world, showcasing areas such as the team locker

rooms, trophy displays, and the newly upgraded pitch

and facilities (Brochado et al., 2021). Stadium tours

are not only a cultural and fan engagement tool but

also an important revenue stream for football clubs.

Real Madrid generates significant income from

stadium tours that include ticket sales and

merchandise sales. The stadium has also transformed

the local neighborhood, by attracting tourists and

promoting local businesses. The stadium also appeals

to foreign visitors, which contributes to Madrid’s

greater economy. With the new Bernabéu, Real

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Madrid seeks to break the long standing belief that

sports stadiums typically offer limited returns as

investments for driving local economic development

(Charles, 2022).

4 DISCUSSION

The Santiago Bernabéu renovations highlight the

potential of large-scale infrastructure projects to

achieve financial, cultural, and urban development

goals simultaneously. Compared to other modern

stadiums, such as Premier League Club Tottenham

Hotspur’s Tottenham Hotspur Stadium and Bayern

Munich’s Allianz Arena, the Bernabéu is able to stand

out. As while these stadiums may succeed in revenue

generation and technological improvements, it cannot

also preserve their historical heritage and become a

city icon like the Bernabéu. This success is attributed

to a strategic approach that prioritized innovation,

sustainability, and fan-centric design.

However, the project was done not without any

challenges. The total cost of a staggering 1.17 billion

Euros far exceeded the initial estimates, construction

also faced delays due to logistical and financial

hurdles (Madrid, 2024). Despite these obstacles, the

long-term benefits appear to outweigh the drawbacks,

as evidenced by the immediate financial gains and

positive reception among many fans and

stakeholders.

Looking ahead, the Bernabéu’s ability to host a

diverse range of events positions it as a critical asset

in Real Madrid’s global branding strategy. Its role as

a multipurpose venue ensures a steady stream of

revenue even during the football offseason, providing

the club with a competitive edge in an increasingly

commercialized sports industry. Improved methods

for this research would be to wait and see the long-

term success of the Bernabéu and more data analysis.

5 CONCLUSION

The renovation of the Santiago Bernabéu Stadium

demonstrates how strategic infrastructure

investments can catalyze financial growth, cultural

prominence, and urban revitalization. The study

underlined the financial effects of the extensive €

1.17 billion renovation, noting an impressive 27%

growth in Real Madrid’s total income in the 2023/24

season and a close to 120% rise in lodging revenue in

the stadium itself. Moreover, state-of-the-art features

like a retractable roof and foldable pitch have made

the stadium a multipurpose venue, covering various

events across sports and entertainment. The study

also highlights the stadium’s new role as a cultural

and architectural landmark in Madrid, contributing to

the tourism and local commerce of the city.

However, there are some limitations present in

this research. The financial data examined in this

analysis, though drawn from the statements of Real

Madrid, does not consider the entire economic

ecosystem functional within the renovations,

especially concerning the larger urban development

metrics. It would similarly help the qualitative data,

such as the interviews with local business owners and

cultural literature reviews, to be qualitative by

introducing a quantifiable systematic method to

verify the outcomes.

Forthcoming studies may address these

limitations by utilizing longitudinal designs to assess

the sustainable effects of Bernabéu’s updates.

Furthermore, it would be too early to judge the

successes Real Madrid would gain from this

renovation. Further investigations may also involve a

comparison with other leading venues worldwide to

assess how the Real Madrid renovation model

translates on a bigger scale. Additionally, expanding

research to include the sociopolitical effects of urban

infrastructure on the scale of such a large

development may further enhance the understanding

of the convergence between sports, culture, and urban

planning. If anything, the Santiago Bernabéu is a

model in terms of innovation in sports infrastructure,

and lessons to be learned for clubs and cities around

the world.

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