€97m mistake! Real Madrid land deal rocked by extraordinary financial error
A major controversy has erupted around Real Madrid's ambitious development project in Valdebebas. Madrid City Council has acknowledged a financial calculation error that exaggerated the project's estimated annual benefit to the city by more than €97 million.
Details: According to El País and Cadena SER, the city initially approved a land-use change involving Real Madrid's 1.2-million-square-metre training complex. An economic report prepared by consultancy Savills estimated an annual net benefit of €98.6 million for municipal finances. However, the calculation mistakenly applied a 10% rate instead of 0.1% to the cadastral value of certain properties. Correcting the error reduces the projected annual net benefit to approximately €1.46 million.
Madrid mayor José Luis Martínez-Almeida publicly acknowledged the mistake on October 26 but insisted it would not derail the development. He explained that the city would collect taxes according to the applicable legal rates, not the incorrect figures in the study. Officials intend to correct the document, although the consequences for the remaining approval procedures are not yet fully clear.
The project would allow Real Madrid to develop offices, hotels, educational facilities, a private hospital and commercial premises on land previously designated for sports facilities. The proposal increases permitted construction space and could substantially raise the value of the club's property. Opposition party Más Madrid has criticised the operation and questioned the reliability of the financial assessment.
It's worth noting that the €1.46 million figure represents the estimated annual net benefit to the city budget, not Real Madrid's profit. The proposed rezoning has received initial approval but still requires further administrative steps. The calculation error has therefore raised questions about the financial justification for the project without automatically cancelling it.
Reminder: A goldmine in Valdebebas! Real Madrid's academy almost paid for the entire rebuild.
Miguel Solomons
Dailysports's expert
