Real Madrid have been dealt a significant blow for their earning potential over the future, as one of the key projects concerning the redevelopment of the area around the Santiago Bernabeu has been halted by due to legal reason. Los Blancos had agreed a deal with the Madrid Council to build a four-storey underground carpark.

The deal would have provided access to around 500 parking spots to the general public out of the 1,500 built, and included a bus stop next to the ground, as well as direct access to the stadium from the underground carpark. It required reducing a double-lane road to a single lane though, and the Council were due to fund the €70m construction costs.

Real Madrid Estadio, a subsidiary of the club, had won the contract to manage the parking spaces, which they would lease for €6m over a period of 40 years. However the projected earnings from the parking places over that period are €561m. Just days before the bidding process for the contract, which featured Real Madrid Estadio as the only bidder, the value of the contract was adjusted from €561m to €6m.

Judge rejects appeal to continue with construction

However the project has been challenged by a union of local residents, who maintain that the project is not in the public interest, claiming that both the use of the parking spaces, and the use of the money were not justified by the Council. The allegation is that the project would private interests, Real Madrid Estadio in this case, more than the public.

As per Cadena SER, the Madrid Supreme Court of Justice have ruled against Real Madrid and the Council’s appeals to restart the project, after it was halted due to the above allegations in the Regional Courts.

“Florentino Perez, who is the only one giving orders, built a business model that is based completely on illegality,” Enrique Martinez de Azagra, Head of the union of residents, commented.

Mayor of Madrid doubtful over appeal

Los Blancos and Madrid Council do still have a final appeal they can launch in order to try and save the project, but Mayor Jose Luis Martinez-Almeida sounded doubtful about the prospect. He told Diario AS that the Council’s legal department considered it ‘likely unviable’ to launch a further appeal, but that they would study the ruling in detail first.

“If it is viable, it will be appealed, and if it is not viable, it will not be appealed,” Almerida explained. “[We will] try to find a solution for that structure that is already implemented and where money has already been invested, which should not be considered lost.”