Real Madrid sells training ground to wipe out debt
MADRID, Spain -- Real Madrid has sold its training ground to the local government in order to wipe out its estimated 46,000-million peseta (US$245.4 million) debt.
The value of Monday's sale was not made public but it had been reported in the Spanish media to be worth up to 75,000 million pesetas (US$400 million).
However, the operation has been condemned by politicians from opposition parties who accuse the Madrid Regional Council of utilizing public finances to rectify what they claim to be Real Madrid's financial mismanagement.
Mayor Jose Maria Alvarez del Manzano, president of the Madrid Regional Council Alberto Ruiz Gallardon and Real Madrid president Florentino Perez all signed the agreement.
Perez took charge of the club last July, undertaking to eliminate the club's heavy debt which had steadily increased during the 1990s.
"I have been working for this from the very day I became president. Today is very important for Real Madrid because we have removed a terrible burden and will soon have a new training ground which will be even better than AC Milan's Milanello training complex," Perez said Monday.
"From now on we can live without anxiety or financial difficulties. Real Madrid has not only to be a sporting leader, it must also be a financial leader too."
Under the terms of the agreement, the club is expected to vacate the 110,000 square meter (133,100 square yard) Ciudad Deportiva training ground in 2004 and relocate to a new state-of-the-art complex ten times the size.
Undeveloped land in the northeastern outskirts of the city has been provided by the Council.
The sale still requires ratification from Real Madrid's club members' committee in a vote on May 27th, though it is not expected to present an obstacle.
On the site of the old training ground, situated in the northern stretch of the city's main artery, Paseo de la Castellana, the Council plans to construct four office blocks of up to 45 stories, making them among the tallest buildings on the city skyline.
Two of these will be managed by the club itself, the Regional Council will take over another while the fourth will be shared between the two.
The Council also expects to construct a new 20,000-capacity sports pavilion which will be central to the city's bid for the Olympic Games of 2012. There will also be parking lot for 6,750 cars.