November 19 – The Nou Mestalla may finally be closer to competition after it was announced that a new long-term corporate financing agreement has been finalised between Valencia CF and its investing partners to complete the stadium.
Construction began on Valencia’s new home in 2007, but work was halted due to financial reasons and the site became known as the ghost stadium. In 2011 the club stated that a contract had been negotiated with Bankia, but that deal collapsed. In 2013 an updated redesign was floated by Fenwick Iribarren Architects, however, that never came to fruition.
Now, 17 years after ground was broken, the club has completely transformed its capital structure. Two complex large-scale financial transactions have secured the club and stadium. Firstly, a long-term corporate facility loan of €121 million, and secondly, a short-term bridging loan facility of €65 million.
With the closing of the two arrangements, Valencia CF have repaid all their existing corporate debts, and the restructuring has substantially improved the club’s capital structure, providing it with sufficient liquidity, solvency, and financial depth for the coming years.
Club president, Layhoon Chan said: “The completion of the debt restructuring exercise marks a milestone in our journey, one that many of us have worked tirelessly to reach. The successful completion of the corporate financing agreement, alongside the bridging loan, has strengthened our financial position. This allows us to confidently move forward with the financing for the Nou Mestalla Stadium Project. The new stadium project represents our commitment to growth, to innovation, and to the vision that will be propelling us forward.”
It was hoped that the Nou Mestalla Stadium, would be a venue included in Spain’s 2030 World Cup bid, however, it was removed from the list in July of this year. The club currently sits at the foot of the La Liga table 3-points from safety. Any relegation would certainly put more financial stress on the club.
Singaporean owner Peter Lim has for some time been the focus of fan anger and calls for him to exit the club. Instead he has steadfastly hung on to the club’s ownership. Despite the club finances now looking healthier, and the Nou Mastella looking like a reality, only a return to winning ways will truly win favour.
Contact the writer of this story, Nick Webster, at moc.l1734846531labto1734846531ofdlr1734846531owedi1734846531sni@o1734846531fni1734846531