Real Madrid and Madrid City Council have reached an agreement over the €400 million renovation of the Santiago Bernabeu -- with the Spanish Primera Division club accepting a court decision and modifying the construction plans now set to begin in 2017.
Madrid president Florentino Perez first announced a rebuild of the stadium back in 2004, with a major step made in October 2014 when he detailed a €400m partnership with Abu Dhabi-based IPIC (International Petroleum Investment Company) to finance an expansive project which included a futuristic silver skin, a retractable roof, luxury hotel and new retail area.
This plan, however, was challenged by the local council and blocked by the Tribunal Superior de Justicia de Madrid.
Following months of discussions, a new amended version of the development has been agreed -- which will still include the roof, and may also feature a hotel, but will retain the current footprint of the structure alongside the city's Paseo de la Castellana.
Speaking at a joint news conference alongside Madrid Mayor Manuela Carmena, the Blancos club chief said that a consensus had been found with the local authorities to move on from the court's objections to the project.
"Today is a very important day for Real Madrid, its socios, fans and also for our city," Perez said. "I want to thank the mayor and all the others responsible within the town hall and government who have made possible this agreement we are presenting today.
"We have found a consensus to resolve the restrictions that the court imposed, allowing us to transform the stadium into one of the best stadiums in the world, in a balanced and sustainable way for all the city."
Perez said that the approximate cost of the rebuild remained the same as before, and once the official permits were secured work could begin next year.
"The cost is approximately €400 million," he said. "The agreement with IPIC is for this cost. We will start as soon as we can, when we have all the paperwork done, but during 2017."
Presentado el acuerdo entre el #RealMadrid y Ayuntamiento para impulsar el proyecto de remodelación del Bernabéu.
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- Real Madrid C. F. (@realmadrid) October 11, 2016
Perez confirmed previous reports that the Bernabeu would now get a "surname" paid for by a commercial partner, saying such sponsorship was standard now in football and would not change how the stadium was referred to in practice.
"The stadium will still be the Bernabeu, but it could have a surname, as all stadiums now have, to help to pay for the structure," he said.
The idea of including new shopping space or a luxury hotel within the stadium had not been completely forgotten, Perez said, as the club could make better use of space within the footprint of the existing structure.
"We've not said there is no new commercial centre or hotel," he said. "We've agreed not to extend the size of the buildings, the footprint.
"The Real Madrid offices can move to [our training ground at] Valdebebas, freeing up 8,000 square metres. There is also 10,000 square metres in the [current] commercial centre. And 5,000 metres squared not now used.
"So we can fulfill the court decision with a better use of the space we have. We will do what is best for Real Madrid, working with the town hall. The stadium will have the same capacity as before -- some seats will be redistributed throughout the structure."
Perez said that June's European Commission order that Madrid pay the council €18.4m due to a previous land-swap involving the Bernabeu site was not a factor in this new agreement with the local authorities.
"We have appealed that fine with the EC and I am convinced we are right and we will win," he said.
Madrid's annual members' meeting takes place on Oct. 23. During his introductory comments Perez said that "Madrid has no owner, it belongs to its members."
But later during questions from reporters, he appeared to confirm that no vote would be required at this meeting for the stadium rebuild project to progress or for the Bernabeu's new "surname" to be accepted.