FC Barcelona have announced that the costs for their Camp Nou upgrade, known as the "Espai Barca" project, have more than doubled to $1.5 billion (R25 billion).
Earlier this week, Barca announced a loss of $113.5 million (R1.9 billion) for the 2019/20 campaign, and also revealed that new plans for the Camp Nou revamp saw the overall costs skyrocket to almost $1.5 billion (R25 billion).
The initial Espai Barca project was approved in 2014 with a budget of $700 million (R11.6 billion), according to Forbes.
The original plan included a remodelling of the Camp Nou, as well as several smaller projects such as the construction of a new Palau Blaugrana for 10 000 spectators, a Petit Palau for 2 000, an ice rink and the Barca Campus.
The work was initially estimated to be completed by 2021, and was to be financed over eight financial years from 2017 to 2024. The original plan also stated that the club would generate incremental revenue of $58.5 million (R972 million) per year.
However, since the plan was approved, several changes and additions have led to a massive increase in estimated costs. An urban modification plan, as well changes to the proposed facilities and the improvement of the Camp Nou, including a museum, saw the construction costs increase by 25%.
The new estimated cost is $850 million (R14 billion), plus $105 million (R1.7 billion) in interest, to be paid to US investment bank Goldman Sachs. On top of that, Barcelona will also have to pay additional interest due over 25 years, with overall costs adding up to $1.46 billion (R24.3 billion), according to Forbes.
This is more than double the approved plans, but the incremental revenue would reportedly also rise to $175 million (R2.9 billion) per annum, minus a $58.5 million (R972 million) loan repayment per year, starting in 2024/25.
The new plans still need to be approved by the club's members, but first the board is facing a vote of no confidence after an opposition group of socios generated enough signatures to start the official process for current president Josep Maria Bartomeu to be replaced.
