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MADRID, May 13 (Reuters) – Spanish soccer club Real Madrid are set to lose ground in a $440 million legal battle with Abu Dhabi sovereign investor Mubadala (MUDEV.UL), people familiar with the matter told Reuters. Lost the case over a proposed sponsorship of its Madrid stadium.
Real Madrid is seeking 400 million euros ($440 million) in damages from Mubadala for what it says is the Abu Dhabi sovereign investor’s failure to honor a sponsorship deal that would have given it naming rights to the Santiago Bernabéu stadium for 20 years.
“The tribunal constituted under the rules of the Paris Court of International Trade ruled in favor of (Mubadala),” the source told Reuters.
In 2014, Real agreed to a strategic partnership with Abu Dhabi fund International Petroleum Investment Company (IPIC), now Mubadala, to help fund a planned stadium overhaul.
The project seeks to add a dramatic new roof and exterior to the existing structure, and includes a hotel and a shopping mall to help boost revenues for the world’s highest-grossing club.
However, in 2015, the Madrid Court stopped the original renovation of the stadium.
A later plan, approved by Madrid’s city council in 2017, differs from the one agreed by the football club and Mubadala.
The court ruled that by the time the second expansion was agreed in 2017, the sponsorship contract had expired.
Allen & Overy and GBS Disputes Advise IPIC Mubadala, Law Firm Alonso & DÃez-Hochleitner and Pérez-Llorca Advise Real Madrid
Mudabala’s stake includes Spanish energy firm Compania Espanola de Petroleos (CPF.GQ).
($1 = 0.9084 EUR)
Reporting by Graham Keeley and Andres Gonzalez Estebaran; Editing by Hugh Lawson
Our standards: Thomson Reuters Trust Principles.
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