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La Liga giants Real Madrid have reportedly suffered a legal setback in a court dispute with Abu Dhabi sovereign investor Mubadala over a $440 million sponsorship deal for its Madrid stadium.
Real Madrid are seeking 400 million euros ($440 million) from Mubadala after they say the Abu Dhabi sovereign investor failed to deliver on a sponsorship deal that would have given it the name of the Santiago Bernabéu stadium for 20 years right. “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.
Madrid’s city council approved a later plan in 2017 that 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 advised IPIC Mubadala and Alonso & Diez-Hochleitner Abogados and Perez-Llorca advised Real Madrid.
Mudabara’s stake includes Spanish energy company Compania Espanola de Petroleos.
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