Athletic Club de Bilbao New San Mames

Portland staff members advised Athletic Club de Bilbao on raising private sector finance for the development of the New San Mames stadium, including advising on stadium configuration, corporate boxes, categories of season tickets, and possible naming rights to build up the revenue line for the stadium which in turn would determine debt capacity. Once calculated this would then determine the level of equity required.

The assignment included:

• Evaluation of alternative sources of finance
• Building the stadium finance model
• Developing the project structure for Stadium Co Club Co
• Helping the stadium marketing consultants determine the optimum configuration for the stadium; corporate boxes, season tickets, on-the-day tickets
• Developing the revenue line for the stadium including alternative uses
• Determining revenue streams which could support the proposed level of debt and would be ringfenced from the club financial requirements
• Determining the optimum debt and level, and from it the required equity
• Determining the club’s annual transfer budget and contribution from the stadium post debt service
• Transfer budget covenants in the early years
• Consideration of stadium naming rights

Following the analysis and feasibility study, the project was eventually largely funded by the Basque government and municipality of Bilbao