- Legends to take 20% of profits, according to Vozpópuli
- Experiential services agency to arrange concerts, trade shows and conferences
- Legends also acquires analytics-focused 4Front for ‘US$15m to US$20m’
Spanish soccer giants Real Madrid have struck a 25-year commercial partnership with experiential services agency Legends to manage non-sporting events at the club’s Santiago Bernabéu stadium, according to Vozpópuli.
The Spanish news outlet reports that Legends is excepting to bring in annual revenues of between €400 million (US$447 million) to €440 million (US$491 million) through the agreement, of which the agency will receive 20 per cent. Real had purportedly been earning €150 million (US$168 million) per year from this area prior to the pandemic.
Under the terms of the deal, Legends will reportedly be able to put on various events, including music concerts, business trade shows and conferences at the Bernabéu.
Should Legends make good on its revenue projections, Real will net in excess of €10 billion (U$11 billion) over the course of the contract.
The LaLiga leaders’ famous ground is currently in the middle of a major redevelopment as Real seek to make the venue a major revenue generator beyond matchdays. The project includes a retractable roof, premium hospitality zones and, to ensure the playing surface is unaffected during non-soccer use, a retractable pitch. Work is not expected to be completed until the end of this year at the earliest.
Real secured an additional €225 million (US$251 million) loan to fund the redevelopment in December. The club had obtained an initial loan of €575 million (US$642 million) from JP Morgan and Bank of America in 2019, according to El Confidencial.
In 2018, Real initially brought in Legends to help advise on the refurbishment. The pair would then expand their relationship in 2020, with Legends taking on management of the club’s retail operation.
Legends was valued at a reported US$1.35 billion in a January 2021 after US investment firm Sixth Street took a majority stake in the company. According to Sportico, Sixth Street’s investment secured it a 51 per cent holding.
Meanwhile, Legends has acquired data and analytics, and digital media agency 4Front. The deal is worth between US$15 million and US$20 million, according to Front Office Sports (FOS).
4Front will retain its name and operate as part of the Legends Global Technology Solutions division. 4Front co-founders Josh Kritzler and Dan Migala will serve as co-president and chief operating officer, and co-president and chief revenue officer of Legends Global Technology Solutions, respectively.
Founded in 2007, 4Front uses insights and data-driven solutions to drive revenue for its clients, which have included the likes of Chelsea, the New York Mets, Cricket Australia (CA), Evil Geniuses, and the Ultimate Fighting Championship (UFC).
“Legends provides a holistic solution for clients that is powered by data and analytics,” said Shervin Mirhashemi, chief executive of Legends.
“4Front has developed a strong position as a leader in data driven solutions and delivery of actionable insights that drive increased revenues and enhanced experiences. With 4Front joining our Global Technology Solutions portfolio, we are further amplifying our already robust technology, analytics and digital service offerings for all our clients across Legends’ integrated 360-degree service solution platform.”