Sporting Clube de Portugal secured approximately $243 million (€225 million) through a new bond issuance, primarily to fund extensive renovations at its José Alvalade stadium, which saw overwhelming investor demand.
The offering attracted nearly $2.16 billion (€2 billion) in bids, making it 8.5 times oversubscribed, according to the club. This strong market interest led to investment-grade ratings of BBB and BBB- from DBRS and Fitch, respectively.
Funds will finance renovation works at the Lisbon-based stadium, projected to continue until 2029. The financing is a key part of the club’s strategy to transform into a global “entertainment and lifestyle hub.”
The bonds carry a fixed interest rate of 5.75% and mature over a period of up to 28 years. Sources familiar with the deal identified the U.S. bank JP Morgan as the private partner in the transaction, though Sporting’s announcement did not name the institution.
The operation is linked to the creation of Sporting Entertainment, a new subsidiary 100% owned by Sporting’s public limited company (SAD). This new entity now manages the surface rights of the stadium. The club stated the move will also extend its average debt maturity and reduce financing costs.
The initiative is a cornerstone project for the club’s leadership, headed by President Frederico Varandas.