CF: Milan and Inter submitted €1.29b plans to City Council for new San Siro

This morning, a report has revealed that plans worth more than €1 billion have been submitted by AC Milan and Inter for the new San Siro.

A lot is surrounding the idea of a new San Siro currently, and for good reason. Ultimately, the clubs have agreed on a purchase, and now the final formalities need to be completed. However, there are still some issues with things.

Beppe Marotta, the Inter CEO, spoke about it last night before their game against Sassuolo, calling the ordeal ’embarrassing’. Hopefully, this will be a kick in the backside for things to progress sooner, especially with the threat of moving.

New San Siro costs: A breakdown

Nevertheless, there is also something important about the new stadium which has been revealed by Calcio e Finanza (via MilanNews), this morning.

In fact, the report finds an excerpt from the documentation submitted to the council last week to present the plans for the land, which states the following:

“With the construction of the new stadium, the teams are preparing to undertake the most significant investment in their history, with a total budget for the construction of the stadium and the acquisition of the GFU’s development rights of approximately €1.3 billion at current prices (excluding remediation, demolition, and any unforeseen costs). 

Image: Il Giorno

“This figure represents approximately 1.5x the combined revenues of the two teams. The investment will be financed through a combination of equity and bank debt. The debt component will be raised through traditional financial instruments such as bank loans during construction and/or long-term bonds, with repayment guaranteed by the revenues generated by the stadium.

There are also some estimates of the costs and how they will be broken down:

➤ Stadium sector: €811 million (of which €707 million for the stadium and €104 million for infrastructure and urban development);

➤ Energy centre: €34 million;

➤ Land acquisition: €204 million (including taxes);

➤ Stadium construction: €75 million;

➤ Soft costs: €160 million;

➤ Carbon credit: €7 million;

TOTAL: ~€1.29 billion