Real Madrid and IPIC Announce Major Sponsorship Agreement

Real Madrid have struck a sponsorship deal with the International Petroleum Investment Company (IPIC) that is expected to bankroll the renovation of the Santiago Bernabeu Stadium.

The European champions confirmed the presentation of the agreement with IPIC via a statement on their official website:

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Today at 1 pm CET the presidential box at the Santiago Bernabéu will host the presentation of the agreement between Real Madrid CF and IPIC (International Petroleum Investment Company). 

The event will be attended by Florentino Pérez, the Real Madrid chairman, and his Excellency Khadem Abdullah al-Qubaisi, chief executive of IPIC

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Rhiannon Jones of Real Madrid TV confirmed the announcement on Twitter:

IPIC was founded in 1984 by the government of Abu Dhabi; they are now owned by the Abu Dhabi royal family. They already have interest in Spanish businesses and currently own Compania Espanola de Petroleos (CEPSA), an integrated oils and petrochemicals company, per the European Commission, but this latest deal with Los Blancos will thrust them to the forefront of the Spanish and world market.

The IPIC website outlined some of the details that were part of the deal, as reported by Reuters via The Guardian):

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Both parties have agreed not to divulge the length or the value of the deal, IPIC said.

The agreement includes setting up Real museums and expanding the club’s global footprint of football schools, as well as creating content for digital-media platforms, IPIC, which is owned by the Abu Dhabi government, said on their website on Tuesday.

“The commercial arrangements will enable Real Madrid to meet one of its most fundamental future challenges, to convert the [Bernabéu] stadium into the best sporting venue in the world,” it added.

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While full facts and figures surrounding the deal have yet to enter the public domain, the deal will surely give Real Madrid a financial boost as they plan to build the "new" Bernabeu stadium. Initial plans for a £330 million overhaul were announced in January 2014, and work is expected to be completed by 2017, per BBC Sport.

Gonzalo Arroyo Moreno/Getty Images

While Perez seemed to imply that the stadium would preserve its name at the time of the initial announcement—in tribute to the Real Madrid icon—recent reports have suggested that the club are privy to selling off of the naming rights to the Bernabeu, per Jonny Singer of the Mail Online.

According to Singer's piece, it's a move that could potentially generate around £390 million for the Spanish giants over the next 20 years.

At the announcement, Perez spoke of his desire to make the Bernabeu one the best in the world with the backing of their new partner. In addition, the IPIC chief in attendance explained part of the motivation behind the deal, per Dermot Corrigan of ESPN:

It remains to be seen if IPIC will imprint themselves onto the Real Madrid fabric via the stadium name, but for a club that has always been shrewd in their business acumen, missing out on that kind of money—while it may be a move unpopular with some staunch Madridistas—would be an incentive too lucrative to turn down.