Finance

Palma City Council completes purchase of Estadi Lluís Sitjar site

Palma City Council has completed its purchase of the land on which RCD Mallorca’s former home, Estadi Lluís Sitjar, had sat.

The LaLiga club last month hailed the striking of an agreement to unblock the sale of the land. The deal has now been concluded, ending a dispute that had rumbled on for over two decades after the club moved from the Lluís Sitjar to what is now known as the Estadi Mallorca Son Moix.

Mallorca confirmed in a statement that the council, otherwise known as the Cort, has purchased the land for a fee of €10.2m (£8.9m/$10.8m). The club will use the amount received for its shares to fund the redevelopment of the Estadi Mallorca Son Moix. The club will reportedly receive €3.4m from the deal.

The agreement to buy the land has been struck between the council, the club and the Lluís Sitjar Co-Owners Association. Through the agreement, Mallorca will offer Association members a lifetime pass to attend games at the Estadi Mallorca Son Moix.

Alfonso Díaz, RCD Mallorca’s chief business officer, said: “All the money that comes to Mallorca for this purchase will revert to improving the stadium. The club’s desire has always been to reach an agreement because 50,000 square metres in the centre of the city could not stand still for so long and this has been made reality thanks to the will of all parties.”

Mallorca was given the go-ahead to revamp the Estadi Mallorca Son Moix back in April, after initially presenting its plans in January. The initial phase of the project will cost €5.4m and will centre on a new structure in the lower part of the south stand.

Mallorca’s current stadium rebranded earlier this month after the club agreed a new sponsorship deal with the Consell de Mallorca.

The stadium had previously been known as the Visit Mallorca Estadi through an agreement with the island’s tourism board, but the club announced in August that this deal would be scrapped amid concerns about over-promotion of the province. The new deal will run for the rest of the 2022-23 season.