The club from the popular region of Spain will allocate 80 out of nearly € 121 million for its new stadium. This will be possible thanks to the transfer of money to the club as a result of the conclusion of the La Liga agreement with CVC. This does not mean, however, that the outlays for the completion of works will be increased only by this amount.

During the general meeting of shareholders, Valencia confirmed that it is to receive € 120.7 million from the La Liga Impulse project thanks to an agreement with the CVC Fund. Out of this amount, as much as € 80 million will be allocated to the completion of works at Nou Mestalla. These are scheduled to start in September 2022.

Certainly, the aforementioned budget will not be sufficient to fully implement the works. For now, due to various concepts, the Spanish club has not specified exactly how much additional funds will be spent on the construction and development of the facility. It is also unknown what the financing path for the remaining part of the investment will be.

 © Valencia CF 

The new venue is to be the center of attractions and will be available 24 hours a day all year round. Ultimately, in addition to its sports function, it will turn into a place serving to integrate the fan community centered around the team. Moreover, it will be used as an entertainment spot for residents and visitors of the Valencia region who are not particularly interested in football.

A question arises: why does the club not allocate the full € 120.7 million to work related to the construction of the new arena? The amount given is the sum of three business components: 15% is the mitigation of the effects of the pandemic / debt repayment, another 15% of funds is intended to cover the costs related to player registration, and the remainder is infrastructure expenses (the aforementioned proportions may change).

© Ravave

However, it is not entirely clear why the club's representatives announced to the public the amount of € 80 million, and not almost € 85 million (70% of € 121 million is nearly that much). The answer to this question may be that Valencia CF plans to acquire, among others, two plots of land for the construction of a medical center. What’s more, € 4 million is to be invested in digitizing and promoting the club's brand.

Recently, reports have emerged that as much as € 180 million is needed to complete the stadium and that means looking for new investors to cover the missing € 100 million.

Author: Miłosz Magrzyk