The recipe for the new Palau: another loan and many years of patience

BarcelonaWhile Barça has already begun the countdown to its return to Camp Nou, the Palau Blaugrana continues to patiently await its renovation. The club has been delaying the renovation for months, which, according to the initial schedule, was supposed to have begun last year. The foundation stone hasn't been laid. But neither has the project been presented. In fact, it's not even clear how it will be financed.

A few months ago, ARA contacted the club to inquire about the status of the project, a key element in starting the renovation. The official version at the time was that would be presented at the end of the seasonThe latest consultation doesn't set a deadline and simply states that "work is continuing." The task falls to TAC Arquitectes, one of the firms that won the architectural competition—the other, HOK, stepped aside.

The only details that have emerged about the final design are that it will be slightly different from the one presented to the public in 2016, although "its essence will be maintained." The initially planned capacity for 10,000 seats has increased to 15,000, although the price has also increased: from the initial 90 million to the 420 million estimated by Joan Laporta's board. In any case, the president admitted in close circles that the cost was very high and that they would look for a way to reduce the final amount to 300. This is, in fact, one of the points that has delayed the presentation of the final model and has generated friction between TAC and the managers of the Espai Barça.

The current Goldman Sachs loan terms are not suitable for the new Palau

The other major sticking point is precisely paying for its construction. As ARA explained, when Barça signed the securitization fund with Goldman Sachs, the renovation of the Palau was not included. The 500-page document only mentioned it to say that it was allowed to spend part of the nearly 1.5 billion loan to conduct the preliminary study. Nothing more. This already prompted complaints from some members who felt cheated. The club's version, argued at the time by Eduard Romeu, former vice president of finance, is that at the time of signing the loan, they couldn't guarantee when the pavilion would be built. So they left everything agreed upon with the investors: the financing would come from the stadium's surplus money, approximately 300 million.

But the experts consulted by this newspaper deny this. "When you issue a bond, everything you can do and what you can't do is specified in writing," they clarify. The only thing that can be done is what, in financial jargon, is called an "extension of the description." That is, establishing a new wording—which in this case would include the construction of the Palau with the surplus money from the Camp Nou. Therefore, it is necessary to bring all parties together, get them to sign it, and inform the CNMV. "It's a remote possibility because what investors want is to recover the money they have put up," notes one of the sources consulted.

"If we're already struggling to repay the Camp Nou loan, imagine adding more money to build the Palau," adds an unofficial source from the Barcelona offices. Thus, the proposal involves either carrying out a new bond issue or finding a private investor willing to put up the money. "It will be difficult to find them. The stadium's business plan is clear and attractive. That of the pavilion is much less viable," maintains a financial expert. Official sources at Barça deny the possibility of requesting an alternative loan, although they do not provide details on how they plan to carry out the renovation.

Barça admits the difficulty of combining the works at the Camp Nou and the Palau simultaneously.

The final point of contention is the location. The new Palau will be located on the site of the former Miniestadi, but which has now become the breeding ground for the Camp Nou renovation. The project will not be able to move forward until 2027, the year in which the stadium works will be completed. As Sentelles said: "We'll start the work when we can." Everything indicates that another loan will be necessary, along with a few years of patience, before it becomes a reality.