“In recent years, we have generated about 15 billion pesos in revenue per year on average. It is expected that by 2031 we will double that amount and approach $30 billion in annual revenue. Therefore, the new stadium completely changes the total revenue generation structure of an institution like Cruzados.
The sentence corresponds to Juan Pablo Pareja, who gives details and breaks down the economic impact that the remodeling of San Carlos de Apoquindo will have on the finances of the Catholic University. The general manager of the company that manages the football branch of the strip team celebrates the end of a historic week for the club and for Chilean football, mainly due to two important milestones: the collection of almost 11 million dollars during the capital increase and the completion of a bond debt of 25 million US dollars, unprecedented event in the activity.
“We are very happy and proud of the success of the project so far, both in raising capital and in placing the bonds. These were difficult years. I would have liked to have had a crystal ball to look for a better moment, because obviously it was not the best, since what has been dragging on since the social epidemic, the pandemic, a war, and all those inflationary processes that have occurred in Chile and also in the world, which have affected, for example, the increase in the costs of raw materials and construction, which obviously affect us directly, all the more because of the scale of this project”, he warns.
Despite the obstacles, the quadruple Chilean football champion was able to overcome and obtain funding for his ambitious project. These are significant resources that will allow UC to achieve its dream of improving the Precordillera campus, which was becoming obsolete at 33 years old and, due to its capacity, no longer meeting the high demand from fans. Thus, it will give way to the most modern stadium in the country and one of the most advanced in Latin America. The coliseum, which should be inaugurated at the beginning of 2024, promises to strongly and gradually increase the purchasing power of the company, a scenario which will allow the formation of more competitive teams in the future.
Of course, because the New Fortress It will allow the four-time champion to take a huge leap economically, as he will increase his annual income by around $3 billion starting in 2024, according to Cruzados’ conservative projections, just for the first few years. These estimates are on the rise, as the project and the new stadium mature and consolidate over time.
The couple say the outlook bodes well for the company. This is mainly due to four central axes which support the new economic model which allows a stadium with international standards: contract of naming rights, matchday or matchday, rental of the stadium as a real estate infrastructure and commercial use of the different enclosure spaces.
“This project allows us to generate a permanent impact on Cruzados’ revenue generation model. In our core business, in which we participate today, revenue comes from four different sources: advertising, television rights, matchdays and player transfers. Without embargo, with which appears an absolutely complementary negotiation, that is the direct commercial exploitation of the estadio, in that the main concrete effect is the contract of naming rights with Claro, that our will generate the order of $ 1,500 million anuales for the próximos 20 years”explains the student general director.
“Other lines of income associated with the new project are also starting to appear, from a real estate point of view, such as the growth of the place and its new conditions, insofar as it will allow to generate greater footfall, greater capacity and , so, therefore, increases in game day collection.
Indeed, in this aspect, The concessionaire expects to earn about $700 million a year in addition to the $2,000 million it currently generates from game days, ticket sales and subscriptions. “We’re going to create a much more robust entertainment experience, as long as people arrive well before the game and leave after,” he says. The capacity of San Carlos de Apoquindo will increase by 35%, going from 14,000 spectators to a total of 20,000, which will allow, for example, to sell a greater number of subscriptions.
“We are going to be able to increase the number of subscriptions available to the public, which we have had to stop lately, because we do not have the capacity to sell more. We have reached it at 80% of the total capacity of the stadium Here’s an incremental, although we’ve evaluated leaving x number of seats per game for non-subscriber or member audiences, which in recent years before the pandemic made it very difficult for them to get tickets,” adds the executive. In addition, by regulation, UC must guarantee 5% of the stadium’s capacity for visiting supporters. Courtesies must also be taken into account, which increase considerably in the case of international tournaments to which the team usually participates, such as the Copa Libertadores.
The sale of boxes, the number of which will be multiplied by four (there will now be 40 available) and the consolidation of the stadium as a reference for other sporting events are also a key factor. “Since there are high-level sectors, with boxes and reception areas, naturally the average ticket in these sectors will increase significantly, because experiential services will also be marketed, largely aimed at companies of a high standard. far superior.” This will allow us to generate new lines of loyalty and action with sponsors and with our fans,” he warns.
Regarding business in real estate terms, the General Manager of Cruzados points out which projects revenues of nearly 350 million dollars in rents for massive events, due to the 4,300 M2 which will have allowed commercial exploitation. Added to this are other commercial uses of space rentals to operators such as gyms, sports medicine centers, co-working, conferences, shops, museums, tours and other types of ceremonies. , which are also estimated at $350 million annually initially.
Part of these new revenues will obviously be used to pay the debt generated by the project. Even so, in Cruzados they maintain that practically only with the contract with Claro the debt is covered. “When you take on debt, the responsible thing is to make sure you can meet your commitments well. We are convinced that the contract with Claro will allow us to meet the payment coupons of the bond that we are issuing, but we believe that the debt coverage ratios that we have estimated on the basis of the future cash flows that this project will allow, should enable us to fulfill them adequately”maintains the executive.
“Obviously we hope that the project will be consolidated and we will do greater management and exploitation of commercial spaces, which goes beyond the day of the match, in what is the profitability of the square meters that we are going to build. We are sure that this income will go well beyond the simple payment of the debt, but will also generate a greater availability of income which will allow us to continue to strengthen our infrastructure, our sports project and to be able to pay dividends to our shareholders. , which is the ‘one of the questions that we still have pending and that we would like to achieve, in the medium term, with this step that we consider important,’ concludes Pareja.
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