Club owner Peter Lim commits to extended tenure as Valencia continues negotiations for $478 million funding of a larger, improved stadium.
Valencia Secures £€322M for New Stadium, Setting Sights on Future Glory
Singapore - Putting an end to whispers about tycoon Peter Lim offloading his La Liga club, Valencia made a bold announcement on June 26 – they've secured the full financing for their upcoming stadium, Nou Mestalla, at a staggering €322 million (S$480.1 million).
Scheduled to open in 2027, the massive 70,044-seater is set to make a grand entrance as the fourth-biggest stadium in Spain, just behind Barcelona's Nou Camp, Real Madrid's Santiago Bernabeu, and Atletico Madrid's Metropolitano. The current Mestalla stadium hosts a mere 49,419 supporters.
Valencia president Kiat Lim, Peter's son, shared his excitement in a press release, stating, "Securing this landmark financing gives us the green light to deliver Nou Mestalla - a world-class stadium that will power the club's growth for generations. This marks a historic milestone for Valencia CF."
The financing package consists of an "outstanding indebtedness transaction" issued to cover €237 million over 28 years and a five-year loan of €85 million. Interestingly, the loan will be repaid from the sale of the land on which the current stadium stands once the new one is completed.
Kiat, who took over as Valencia president in March, expressed his enthusiasm for the project, "The new stadium gives us a major game-changer... in both revenue potential and fan experience - a bold move forward, and one long overdue."
Since 1923, Valencia has prided itself on playing at the Mestalla, an original stadium build for 17,000 fans and growing over the years to accommodate 49,419 today. Previous plans for a new stadium, situated approximately five kilometers from the Mestalla, were unveiled as early as November 2006 but saw construction delays and halts due to financial struggles and Peter's takeover in 2009.
Despite a challenging season in 2022, Valencia managed to draw impressive crowds with 43,132 spectators per game on average. Now, they're ready to provide fans with a new, state-of-the-art stadium that offers 6,500 hospitality seats compared to fewer than 500 available at the current Mestalla.
The club is also planning to diversify its offerings beyond sports by hosting a variety of events, including leisure, entertainment, business meetings, conferences, and exhibitions. Valencia is actively looking into new commercial opportunities, such as naming rights, founding partners, enhanced hospitality offerings, and digital fan engagement zones.
By 2027, Valencia expects the revenue from the Nou Mestalla to significantly increase – possibly tripling their current earnings. Kiat, 31, further elaborated, "Nou Mestalla won't just open on match days – it will be alive 365 days a year."
The new stadium has been designed to compete with the world’s leading multifunctional venues, striving to become the "epicentre for sport, leisure, and entertainment in the city and throughout the wider Valencia region." Peter's investment of over €200 million in Valencia supports and emphasizes the club's commitment to long-term growth and development, setting the stage for Valencia to compete for top honors in the future.
The significant financing of €322 million for Valencia's new stadium opens up opportunities beyond sports, as the club plans to host various events such as business meetings, conferences, and exhibitions.
In theEuropean-leagues, Valencia's new stadium, Nou Mestalla, is expected to triple their current earnings and provide a major boost to their revenue, thereby setting a platform for them to compete for top honors in the future.
With a state-of-the-art stadium in the pipeline and a diversified business portfolio, Valencia's venture in the world of finance and business seems as promising as their success in football's La Liga.
