The Municipality of Lugano has staged an about-turn on the financial model that is set to deliver a new stadium for Swiss Super League football club FC Lugano, along with a new arena, citing a significant potential cost saving.
In November 2021, citizens of the Municipality of Lugano voted in favour of the Polo Sportivo e degli eventi (PSE) venture. A fiercely contested referendum process on the matter came to a head with a municipal vote on a public-private partnership (PPP) between the City of Lugano and Swiss real estate group HRS.
The PSE project is focused on a 8,500-seat stadium for FC Lugano, plus a 4,000-capacity multi-purpose arena for ice hockey club HC Lugano in the Cornaredo district. With construction having commenced in September 2023, the Municipality said work is progressing on schedule for delivery of the stadium, dubbed Arena Sportiva, in November.
The terms of the PPP are said to have necessitated that that the City communicates its decision on the method of financing at least six months before delivery. In addition to a lease deal, various financing instruments were examined, including a bank loan, a private loan and the issuance of a bond.
A lease deal was previously believed to have been the desired option. However, outright ownership is now being pursued with the Municipality today (Friday) stating that financial simulations highlighted that a bond loan is the most advantageous solution, both in terms of overall savings and for the reduction of financial risk.
It said that projections show the total cost of leasing the facility would amount to CHF153.97m (£138.2m/€163.7m/$168.5m) over 27 years, while financing via a bond loan would entail a total cost of CHF119.06m over the same time period, resulting in an estimated saving of approximately CHF34.9m.
On the basis of these assessments, the Municipality has alerted the City Council to request a credit of CHF114.5m to aid the purchase of the Arena Sportiva and the financing of the operation through a bond loan.
As regards the Palazzetto dello Sport arena, the Municipality said its possible repurchase will be assessed at the beginning of 2026.
In September 2023, FC Lugano reached an agreement for local energy company AIL to sponsor its new stadium. The contract with AIL (Aziende Industriali di Lugano) is due to run for at least five years, from July 1, 2025. The deal, which includes the option for a further five years, was struck following 15 months of negotiations.
The stadium, set to be known as AIL Arena, will replace the Stadio di Cornaredo, which has served as FC Lugano’s home since 1951.
