Spain: Construction of Nueva Romareda turns out more expensive than expected

source: StadiumDB.com; author: Paulina Skóra

Spain: Construction of Nueva Romareda turns out more expensive than expected The construction of the Nueva Romareda stadium is set to cost more than initially projected, with an additional €72 million needed from two of the three partners of the La Nueva Romareda SL group to keep the project on track.

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Funding the project without external assistance

The City Council of Zaragoza and the government of Aragon will each cover half of this additional investment, while Real Zaragoza is not currently expected to contribute beyond its initial share. The total estimated cost of the new stadium, as laid out by La Nueva Romareda SL, stands at €168,845,917. This figure, highlighted in a recent report, prompted both the City Council and the government of Aragon to up their financial contributions to ensure a December bid for construction can proceed.

A document signed by Martín Fuica, managing director of the firm, emphasizes that evidence of secured funding is a non-negotiable requirement for awarding the contract. As La Nueva Romareda SL operates as a public-private partnership with an established budget, it’s essential for public partners to include relevant expenditures in their budgets to comply with legal requirements.

Relying on capital increases and participatory loans, instead of external financing, reduces the financial burden anticipated in the original scenario and lowers the risk of the company accumulating debt with the City Council of Zaragoza. With capital needs totaling €168,645,917, both the City Council and the regional government must each cover half of the additional €72 million. However, costs could fluctuate, depending on potential withdrawals from bidding companies and any cost increases during the process.

Design of Nueva Romareda© IDOM

What’s currently covered in the budget?

The €150,375,500 budget covers the execution of the project, demolition of the current stadium, earthworks, foundations, structure, partition walls, enclosures, and mechanical, electrical, plumbing, and telecommunications systems. It also includes costs for the transformation center, construction project management, security and health coordination, and general construction work. Another €15,264,125 has been allocated for the construction and maintenance of a temporary stadium in the North Parking area, with an additional €3,206,292 earmarked for operational expenses.

Real Zaragoza’s share reduced… for now?

If the capital increase proceeds, each public institution will contribute €20 million (for a total of €40 million). Through participatory loans, each will also add another €16 million (totaling €36 million). This additional funding will make the City Council and regional authorities majority stakeholders in La Nueva Romareda SL, each holding a 37.5% share, with the club’s share reduced to 25%. Previously, all parties held a roughly equal share, with the City Council owning a symbolic 33.4%. However, Real Zaragoza aims to eventually restore its equal share in the partnership.

Design of Nueva Romareda© IDOM

Where will the money come from?

The urgency in adjusting to this new financial plan is driven by the fact that most of the contract (worth €138 million for the La Romareda’s demolition and reconstruction) is scheduled for award by year-end. For Zaragoza, this adjustment must be approved at a City Council meeting on December 23.

The City is considering an annual allocation of €3.1 million for La Romareda through 2028, adding €8 million in 2026 and 2027, and another €4 million in 2028. This funding will allow the City to cover its €20 million share. As a result, one major project—Smart Sports City—will be shelved for this term. The remaining amount will come from participatory loans: €100,000 has been allocated in the current budget, €6 million is earmarked for 2025, and €9.9 million for 2026. Approval of these amounts is essential to the new plan, but regional authorities anticipate no major obstacles.

Design of Nueva Romareda© IDOM

Up to 15 years to recoup loaned funds

The City expects to recover the loaned amounts, with interest, as Nueva Romareda begins to generate revenue. Since the City Council is a co-owner in the public-private company, repayment terms will be favorable, but the process may take 10 to 15 years. With the new capital structure, both the regional government and the City Council are committed to funding €152 million in public funds for the project by 2028 (€76 million each). Adding €40 million from the club brings the total to €192 million (excluding VAT, which is deductible). Of the City’s €76 million, €51.5 million will be provided in cash, with the remaining €24.5 million in land rights, as the grounds of Nueva Romareda will be transferred to Real Zaragoza for 75 years, granting the club the right to profit from the property in return for an annual fee.

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