Porto, of Portuguese men's soccer’s top-tier Primeira Liga, have unveiled a 25-year tie-up with Spanish investment firm Ithaka.
Through the deal, Porto are selling 30% of the economic rights covering the club’s 21-year-old Dragao home stadium in Oporto to Ithaka, in exchange for €65 million ($69.2m) in investment.
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The funds are to be used for investment into and around the stadium, and for increasing the Dragao’s commercial potential – sponsorship, naming rights, tours of the venue, the hosting of concerts, and other venue-based income.
Porto have said the deal is designed to “increase the use and economic profitability” of the 50,000-capacity venue (which the club owns and operates).
Of the €65 million, €30 million will be fully invested into the venue during the initial years of the deal.
When the 25-year deal ends, Porto will recover full economic rights to the stadium’s operations.
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By GlobalDataThe deal is set to start at the beginning of the 2024-25 campaign, subject to regulatory approval concerning long-term Ithaka financing.
In November, Porto and premium sporting experiences company Legends unveiled a 15-year strategic partnership.
Through that tie-up, Legends is in charge of naming rights and sponsorship deals for the stadium and securing global partnerships for the Portuguese club.
In addition, Legends is responsible for working alongside the club to improve the matchday experience for fans, such as by changing the food and drink experience at the stadium, with a particular focus on Porto’s Partner’s Club VIP boxes and seats.
The Portuguese outfit said: “It is important to highlight that FC Porto maintains control and management over the operations of Estádio do Dragão, as well as full ownership of it throughout the aforementioned 25 years of the partnership.
“FC Porto’s new strategic partner brings extensive experience investing in large international infrastructures and the parties have the operational support of Legends, the world’s leading sports stadium operator that has a long history of success in managing sports stadiums in Europe and the US.”
