Real Madrid are in talks with Saudi Arabia over a sponsorship deal worth €150 million over 10 years, according to an exclusive report from UK based outlet, The Times.
The agreement would see Saudi Arabia’s Qiddiya project become the lead sponsor for the club’s women’s team. The Times has reportedly seen two separate documents which outline the deal terms.
Qiddiya is the name of the project for Saudi Arabia’s new tourist super center. Construction started in 2019 with a goal of being complete in 2030. The project will include resorts, parks, and a massive futuristic city center. Florentino Perez may see the Qiddiya project as a new opportunity for the Real Madrid resort island / theme park which was originally planned to be built in Ras Al Khaimah.
Real Madrid, Barcelona, and La Liga have all been connected with deals in the Middle East in recent years. Qatar are now a sponsor for Barcelona and the Spanish FA moved the Super Cup competition to Saudi Arabia with an aim to play more matches outside of Spain. Florentino likely has built up contacts in Saudi Arabia after his construction company, ACS, agreed a deal to build a pipeline in Saudi Arabia.
With debt mounting after the Coronavirus pandemic, the club will look to utilize alternative sponsorship opportunities and partnerships to beef up cash flow and overall revenues. For any opportunity, like the Qiddiya project, the club will have to weigh the ethical and political impact, alongside the financial.