Real Madrid and Atlético de Madrid have secured some of the most profitable urban development deals in recent memory after Madrid’s city council approved the transfer of large public land parcels for private use. The agreements, approved by Mayor José Luis Martínez-Almeida’s administration, let the clubs turn public plots into valuable assets. Real Madrid, for example, stands to gain nearly €200 million from a single land reclassification without building anything new.
The deals have drawn sharp criticism from opposition parties in the city council, who accuse the administration of favoritism and turning public land into private profit. For Real Madrid, the decision means 85 hectares in Valdebebas, currently an empty lot, will be reclassified for tertiary use. A Savills report commissioned by the city values the increase at €185.49 million. The club’s leadership presents the project as a technological boost for Madrid, promising a new new idea district and thousands of jobs, while the figures point to a major financial gain for the club.
Information from Cadena SER, the Madrid city council approved the reclassification of 448,000 m² of land in Valdebebas in the summer of 2026, raising its estimated value from €70 million to €360 million, a potential increase of €290 million.
Socialist councillor Antonio Giraldo calls it "urbanism tailored to the powerful." He argues that the city’s interests are being set aside to compensate Real Madrid for past municipal mistakes, including the Bernabéu parking issue. Carlos Sánchez Mato, a former finance councillor, has appealed to the European Parliament’s Petitions Committee to investigate, estimating that the real benefit for Real Madrid could exceed €500 million. He calls the operation a hidden public subsidy, with the city council’s own consultants confirming the sharp rise in land value.
The city’s urban planning department rejects the criticism, citing previous failed legal challenges and insisting the new idea district will help the regional economy. Real Madrid has declined to answer direct questions, instead referring to a PWC report that claims the project will add €1.2 billion annually to Madrid’s GDP and create more than 23,000 permanent jobs. Information from Cadena SER, the club and project promoters publicly describe the development as a technological and new district, emphasizing job creation. They also note that immediate financial gain will materialize only if the land is sold or developed by private investors.
Atlético de Madrid is also benefiting from public land deals. Through Barsento S.L.U., a joint venture with Live Nation, the club has secured a 75-year concession to use 205,000 square meters of municipal land around the Metropolitano stadium. The plan includes sports facilities and a large artificial wave pool. It also calls for hotels and commercial spaces, all run by private companies that set their own prices. The city council justifies the deal by pointing to new public sports infrastructure for the San Blas district, but critics say the terms heavily favor the club.
The Valdebebas project allows hotels and offices on land previously designated for sports use. It also permits hospital construction there. If all political and legal steps are completed, the development may not be finished until the late 2030s.
Giraldo says the roots of this arrangement go back years, to a sense of "debt" to Atlético after the city’s failed Olympic bid and the construction of La Peineta. The council’s special plan to allow mixed uses on the land was partially struck down by the courts in late 2025, limiting some of the club’s ambitions but leaving the basic deal in place. Rita Maestre of Más Madrid accuses the mayor of putting private profit ahead of public service. The Green Party objects to the long-term privatization of land that could have been used for much-needed local sports facilities.
Under the concession terms, Atlético will pay a staggered annual fee to the city, starting at €309,000 after five years and rising to €1.5 million in the final decades of the 75-year term. Opposition councillors argue these amounts are small compared with the profits the club could make. The city council says the high investment required justifies the long concession, but public land will so be tied up for generations.
Atlético de Madrid has not released full details of its planned developments. Public documents show plans for six football pitches and a mini-stadium for 6,000 spectators. They also list 25 padel courts, a climbing wall, and commercial and hotel facilities. The old Centro Acuático, left unfinished after the Olympic bid, is also set for redevelopment into a multi-use arena and sports complex, with a university campus also planned. The projects further blur the line between public service and private business.
The city council highlights two parcels totaling 60,000 square meters where Atlético is building sports infrastructure to be managed by the San Blas district. These facilities include athletics tracks and football fields, and are expected to open by the end of 2026. The club is also responsible for connecting the area to the M-40 ring road and developing internal roads. The council says this work justified offering the concession at zero upfront cost.
Deals like these are not unique to Madrid. Across Spain, the overlap of football and politics in urban development has often led to controversy, as seen in the Chamberí penthouse sale. The pattern is familiar: when public land meets private ambition, ordinary residents rarely benefit.
These deals show a city government willing to make exceptions for its most powerful sports clubs, locking up public assets for decades in exchange for promises of economic growth and new jobs. In practice, the financial gains for Real Madrid and Atlético far outweigh the public benefits, while city residents face long-term commitments that limit future choices. The arrangements transfer value from the public to the private sector under the language of innovation and progress. When football clubs and city hall negotiate, the public rarely comes out ahead.
