Why did Atletico need credit to finish the MRV Arena?

O Athletic needs to carry out another credit operation to be able to complete the works on the MRV Arena, which will be inaugurated in 2023. The total amount to be spent on the stadium more than doubled compared to what was planned at the beginning of the project due to a series of factors. When approved, the work was budgeted at R$ 410 million, but now it is R$ 926 million.

Read more: Arena cost makes Galo go in search of R$ 240 million in credit for completion

The increase in stadium costs forced Atlético to go in search of financial credit to be able to complete the work. First, Galo went to the market to guarantee the anticipation of R$200 million and now needs another R$240 million, according to information published by ge.

Why has the cost of Arena MRV increased?

Inflation in Brazil helped to increase the costs of the MRV Arena construction project due to the increase in the prices of construction materials used in the work. In addition, the changes made to the initial design contributed to increasing the cost. The stadium’s capacity, for example, went from 41,000 to 46,000.

Galo also had an increase in technology, such as the installation of security cameras that went from 100 to 300. The number of internet access points also changed from 40 to 900. At the Galo Business Day event, in May 2022 , Arena MRV CEO Bruno Muzzi explained the differences in the project.

“Back in 2017, when the Board approved the R$ 410 million with a contract price modality called Maximum Guaranteed Price, this price was given on top of a basic architectural project. And it is customary for companies, it is impossible to budget a work with a basic project. You have a very big oscillation”, explained Bruno Muzzi.

How will Galo pay the MRV Arena credit?

The CRI (Receivables Real Estate Certificate) was the means found by the club to complete the work. Galo hopes to pay off these amounts by 2029 with what it will receive when the stadium is ready. Amounts collected with captive chairs and boxes, the club’s main resources for the construction of the arena. The amount, however, will be paid in installments by the athleticans, in up to 72 installments, so the club decided to anticipate the revenue.

“The Arena is being built with the sale of part of the Diamond and the other part we are getting through the sale of property. What are they? Chairs, cabins, sponsorship of environments, etc. Sales were made in 20, 30, 40 installments… Let’s bring this to present value, a fund will buy these credits, and Arena will pledge its accounts as collateral”, explained the president of the club, Sérgio Coelhoin May 2022.

What is a CRI?

A CRI is a kind of debt that a private company contracts in order to use resources that are not yet in cash. It is a way of anticipating some future payment (in this case Arena MRV, referring to the sale of chairs, cabins and sponsorships) to direct these funds received with the titles to the construction of a property.

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