Real Madrid's financial problems? How Taylor Swift and Kylian Mbappe are involved

Taylor Swift at her (too loud) concert at Santiago Bernabéu Stadium in Madrid.Image: trapezoid

You are one of the biggest superstars in entertainment. But each brings trouble to the world's biggest football club in their own way. What Taylor Swift and Kylian Mbappe have to do with Real Madrid's concerns.

Stefan Wise/ch media

This Real Madrid story is about Taylor Swift. Not only that, but American pop superstars also play starring roles. Or at least, the American is in danger of testing Real FC.

At the end of May, Taylor Swift held a huge concert at the Real Santiago Bernabéu Stadium. What you need to know: The arena was rebuilt and expanded between 2019 and 2023. Just 1.15 billion euros.

Well, since construction was completed, the Bernabeu has become an ultra-modern stadium with all the bells and whistles imaginable. Have a closable roof, a tape that surrounds the arena, or a lawn that sinks into the ground. But one thing planners and architects failed to consider: The noise generated by the activity shouldn't pass almost unimpeded through the slats of the sleek new facade.

epa11711423 Players warm up before the La Liga football match between Real Madrid and Osasuna at the Santiago Bernabeu Stadium in Madrid, Spain, on November 9, 2024. EPA/Daniel Gonzalez

The expansion and modernization of the Santiago Bernabeu Stadium cost more than 1 billion euros.Image: trapezoid

Now this is a problem. Since the stadium is located in the upscale district of Chamartin, close to apartment buildings, the bourgeois neighborhood felt their sleep at night was disturbed by a Taylor Swift concert. Taylor Swift and 17 other concerts were so serious in breach of noise regulations that a citizens' initiative was successfully launched to ban concerts at the Bernabeu. For weeks, no concerts were allowed in the stadium until further notice.

This means Real Madrid are losing a lot of money. The Santiago Bernabeu Stadium has been renovated and modernized and can be used to host approximately 30 football matches per year. Real Madrid president Florentino Perez knows he can only fund the expensive team if the stadium hosts weekly concerts and other events.

Because Real Madrid originally expected to earn about 400 million euros in revenue from stadium operations every year, you can imagine how much money was lost due to the concert ban. A “Swift debacle” also carries the risk of legal ramifications. In order to market the Bernabeu, Real Madrid signed a 20-year agreement worth 360 million euros with the American investment company “Sixth Street” and its subsidiary “Legends” specializing in sports events. Real Madrid were unable to keep the deal as concerts were canceled for months.

Important games against Liverpool and Atalanta

All of this has put Real Madrid in a difficult financial situation. Because the amount of loans and loans that need to be repaid in the next few years is approximately 1.1 billion euros. That's because stadium renovations can't happen without the help of banks, even for Real Madrid, the first football club to surpass €1 billion in sales last financial year.

An uncertain financial situation coincides with a less than ideal sporting situation. Real Madrid won the title with a 3-0 away win over Leganes last Sunday, and beat Osasuna 4-0 at home before the international break. But these are required courses for Real Madrid stars. What is more important in the assessment is that the “El Clasico” against Barcelona at the Bernabeu ended in humiliation with 0:4, while in the Champions League the match against Milan disappointed its own audience with 1:3.

Speaking of Champions League. As the defending champion, Real Madrid's pressure suddenly increased. After two losses in four games, February's playoffs are likely to be a rough ride. Especially the next two opponents are tough. Today, Real Madrid will face the Premier League leader Liverpool in two weeks, and then play away against Atalanta Bergamo, the strongest team in Serie A. Without a victory, it will be difficult. Enough to advance directly to the top 16.

Kylian Mbappe disappoints – despite seven league goals

The slow progress on the field has a lot to do with Mbappe. Despite scoring seven league goals against back-seat sides such as Alaves, Celta Vigo or Leganes, the French superstar striker has yet to break into Real Madrid's squad. Quite a few people began to scoff at this, complaining that all the money – guaranteed money, wages, bonuses and insurance would total more than 300 million euros over the next five years – would be better spent on one strong defender and one player. The investment has been made to replace midfield strategist Toni Kroos who resigned.

epaselect epa11711707 Real Madrid's Kylian Mbappe reacts during the La Liga football match between Real Madrid and Osasuna at the Santiago Bernabeu Stadium on November 9, 2024 in Madrid, Spain. EP...

Kylian Mbappe’s time at Real Madrid hasn’t been great yet.Image: trapezoid

Spanish football portal Relevo smugly summed up the situation surrounding Real Madrid, asking the question: “Are Taylor Swift and Kylian Mbappe digging a billion-dollar grave?” Things It can't be that bad. But it shows that the association examines every source of revenue: at last Sunday's annual meeting, news broke that Perez was considering converting the membership cards of more than 93,000 “Socios” into shares. There won't be a billion dollar grave, but if this association is to become a corporation, at least one sacred cow needs to be buried. (aargauerzeitung.ch)

European football championship record

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European football championship record

Spain: Real Madrid – 36 titles, most recently in 2023/24. Number 1 follower: FC Barcelona – 27 titles.

Those: Keystone/Rodrigo Jimenez

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Mbappe receives grand reception at Santiago Bernabeu

Video: Watson

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