Benfica District’s licence will be issued by the summer, according to Benfica SAD’s CFO

Benfica District is currently the most ambitious project in the history of the Luz club and, according to Nuno Catarino, also the most attractive to international investors.

In an interview with ECO, Benfica SAD’s finance director reveals that interest in the mega-project, valued at over €220 million, has “exceeded his highest expectations”, and assures us that, paradoxically, financing is his least concern.

“In European football, there are only ten truly significant brands, and Benfica will always be part of that group”, he says, explaining how the combination of a top-tier brand, a city on the rise, and the prospect of the 2030 World Cup makes the District irresistible to investors in this type of project worldwide.

But not everything is settled yet. The council planning permission, which Nuno Catarino promises “by the summer”, remains the most immediate hurdle before the project can be formally presented to the market.

In the interview with Benfica SAD’s CFO, there is also room for a topic that blends emotion and pragmatism: the return of alcohol sales in stadiums. For Nuno Catarino, it is not just a matter of experience, but also a strategic necessity.

“There is no correlation between alcohol consumption and incidents that occur in stadiums, provided it is done in moderation”, he argues, revealing that Benfica is actively working with other clubs to make this change feasible. A solution that, he assures, “will arrive in the coming years”.

Bloomberg reported in January that Benfica was in negotiations with US banks, notably JPMorgan, to finance the Benfica District, estimated to cost over €220 million. Can you confirm these negotiations? What stage are they at? What is the defined project finance structure and what is the timetable for the start of construction?

We have been in discussions with various international lenders, but in terms of financing we are still at a very early stage. What is important at this stage is to understand what these stakeholders are looking for in the structure we are going to propose to them, rather than the other way round, so that we can enter the market on the best possible terms. It is still too early to have a finalised project finance proposal. We have an internal working document and are in constant contact with banks to monitor market developments and make the necessary adjustments.

So, it is still at a very early stage?

We took a very important step, which was the approval of the project by the shareholders at the General Meeting in December. Following that announcement, we submitted a request for preliminary information to Lisbon City Council — the so-called PIP (Request for Preliminary Information) — in order to obtain planning permission for the works. This is a process involving negotiations with various council departments, given the scale and complexity of the project. We would like, as would the City Council itself, to have made more progress by now, but we are within the process’s timelines. The next crucial step is obtaining the licence.

What is the timeline for obtaining planning permission?

It will be soon. By the summer, we will definitely have planning permission in place. That is the deadline we have set internally, and we must meet it.

Is it only once the licence is secured that you can present the project to investors, or can you do so before then?

There’s no need to do so before then. The interest in the project has actually exceeded my wildest expectations when I started this process.

What does that mean, specifically?

There is a very strong global trend towards the creation of sports-related entertainment hubs, with American investors in particular showing great enthusiasm, but also Canadian and British investors. Demand and revenue for these destinations have developed in a surprisingly positive way in every case, which generates great interest in this type of project. Added to this is the fact that, in European football, there are only ten truly significant brands, and Benfica will always be part of that group.

We have achieved an almost perfect combination: a trend that is firmly establishing itself, a very strong brand and a city on the rise, namely Lisbon. Together, these three components, combined with the 2030 World Cup — which is our target completion date for the District — give the project a clear timeframe that makes it very attractive to investors.

Aren’t you worried that financing difficulties might arise?

No. Precisely because it is such an attractive project, financing is the part that concerns me least at this stage. The immediate priorities are obtaining planning permission and bringing the project to fruition under the best possible conditions. Once planning permission is granted, there will naturally be adjustments to the initial project, which will need to be finalised in detail before being taken to market.

In the strategic plan you presented, Benfica District is expected to contribute €38 million in annual revenue. What is a realistic timeline for that figure to start appearing in the accounts?

The project’s €38 million in gross revenue will only be achievable once the project is fully operational, typically six months to a year after its completion. If we are talking about 2030 as the completion date, revenue will begin to materialise in 2031. That is when the project will be fully up and running.

In January, a group of Saudi businessmen visited Portugal in search of investment opportunities, with a visit to Benfica on their itinerary — after stopping off at the Portuguese Football Federation and the Valouro Group, whose chairman, José António dos Santos, holds 16.38% of the capital of Benfica SAD and has shown an interest in selling his stake.

That group did not visit Benfica.

The published itinerary states that they visited the club and watched the match against Estrela da Amadora.

They did not meet with me, nor with the SAD. They were not here.

But, as I said, there has been a great deal of interest from investors in Benfica District. Does that interest include Saudi investors?

When we launched this project, we carried out an exhaustive survey of investors involved in this type of project and concluded that the leadership has clearly been American. It is a fact that, in many cases, American investors are associated with capital from the Middle East, but the leadership — those who structure the operation — are the American banks, which then have access to that capital.

I imagine that other clubs have had between 20% and 30% of their capital coming from the Middle East. In some cases in Europe, when the usual market route is not the most accessible, they have approached investors from Saudi Arabia and other markets directly. But that is not what we expect. If we had been asked to meet, we would have welcomed those investors without any reservation. Quite simply, that did not happen.

In October, you announced a share buyback plan. The shares are currently trading at six euros, around 17% below the all-time high of 7.2 euros recorded less than a month ago. Given this significant correction, will you proceed with the plan over the next three months? What is the plan until the end of the year?

Due to the ongoing bond issue process, I am limited to what has been publicly disclosed. During the period of this issue, we will not carry out any such operations.

But will there be buyback operations this year?

I cannot confirm or deny this. If deemed appropriate, there will be. Otherwise, there won’t.

With shares trading at six euros, is this a good time to launch the buyback programme?

A ‘good time’ is always a relative matter. There is always a balance between surplus profits and opportunity. This is what we have consistently explained to shareholders.

The first-half result showed a profit of €40.6 million, but Benfica were knocked out of the Champions League by Real Madrid in the play-off round, lost the Portuguese Cup, and are currently third in the league, with both the manager and the president acknowledging that winning the league title is now a very difficult goal. What are the expectations for the full-year results for 2025/26? The second half of the season will see an additional €17.5 million in UEFA prize money, but without the round of 16 matches they had last year. Will they be able to ensure annual financial balance?

Due to the ongoing bond issue, I am unable to comment on forecasts.

Regarding the plan to reach an average spend of €40 per fan on matchdays compared to the current €22, will there be an update to Red Pass prices next season?

For the same reason – the forecasting implications associated with the bond issue – I cannot comment on this matter at present.

But that objective is, in any case, a medium-term plan.

Yes. And it is, in fact, the best metric for comparing clubs, precisely because it is very comprehensive, combining corporate revenue with retail revenue (season tickets and matchday ticket sales), as well as a range of activities within the stadium itself, such as catering and food and beverage. It is a metric with many indicators.

In Benfica’s case, season tickets and ticket sales are no longer the most important factors; there are others that carry greater weight, and it stands to reason that these will continue to grow. That is why we want to improve our corporate offering to increase its value, and we also want to bring into the stadium the spending that currently takes place outside it. It is a more comprehensive plan, aimed at transforming a football match into a more complete experience, where many fans can benefit from arriving two hours before kick-off.

Will this transformation already be visible next season?

No. It is a medium- and long-term issue. We will see specific service improvements, but without the Benfica District development and the stadium renovation, it will be difficult to achieve that goal.

And to achieve this, is it essential to reinstate the permission to consume alcohol inside stadiums?

It is essential to have alcohol inside the stadium or within the areas where Benfica operates. It is one of our initiatives. There are no legal impediments in this regard, but there have been constraints arising from the interpretation of the rules, something we have been working on with other clubs, and there is openness among the stakeholders to make this possible. All the more so as there is no correlation between alcohol consumption and incidents occurring in stadiums, provided that such consumption is done in moderation, under clear regulations.

This is a measure that will benefit the whole of Portuguese football, particularly given that, in the second division, there is already some flexibility in this regard, creating an imbalance that puts the big clubs at a disadvantage. We have come close to finding a solution and we believe we will achieve it in the coming years.