Rafa Nadal plans for Malaga major sports complex and two residences

The sites comprise the former Inacua racket sports centre, which has now closed, and an adjoining plot on Avenida Imperio Argentina. In return, the council will receive a minimum annual concession fee of 542,922 euros for 50 years, with the possibility of an extension.

Bids can be submitted until 30 November under an open tender process. However, the conditions are designed to accommodate a project like the one Sierra Blanca and Nadal presented to municipal officials, with an estimated initial investment of 35 million euros. Among other requirements, the development must have links to an internationally renowned figure in tennis.

Documents in the tender file show that the original proposal from Sierra Blanca and the Nadal family, which prompted the council to launch the competition, goes far beyond the former racket sports centre. It includes two residences that would generate a substantial share of the complex’s projected income. Municipal planning officials estimate that the company operating the development could make an annual profit of more than four million euros.

The proposed sports complex would have two main buildings at the northern and southern ends of the former racket sports centre. These would act as windbreaks, sheltering the playing areas. Buildings could rise to a maximum of five storeys, including the ground floor.

The central area would contain 14 tennis courts, with both clay and hard-court surfaces, alongside 13 padel courts. Facilities would also include an outdoor swimming pool, multi-purpose sports halls, a fitness training area, a wellness and spa centre, restaurants, a specialist shop and a sports-themed museum dedicated to an internationally renowned figure, presumed to be Rafa Nadal.

Malaga city council's sports department supports the initiative, arguing that it would transform the traditional club model into an integrated centre for elite performance and training, putting Malaga at the forefront internationally.

At the department's request, the concession would include several commitments. The operator would have to maintain a collaboration agreement with the Rafa Nadal Academy for at least ten years, award three tennis scholarships and three padel scholarships each year to promising players aged up to 21, and offer discounts of between 20 and 50 per cent to groups including large families, pensioners, unemployed people and people with disabilities. The operator would also have to reserve court time for school tournaments and the municipal sports games.

The project's financial viability rests largely on the inclusion of two separate residences. The tender expressly prohibits the operator from using either facility for tourist accommodation or conventional hotel purposes.

The first would be a sports residence with at least 60 rooms on the main plot. It would accommodate tennis players taking part in specialist training programmes and sports camps, as well as coaches and referees.

The second would be a separate student residence on the adjoining plot on Avenida Imperio Argentina. It would cater for students at any level who want to combine their academic studies with sport and the club’s training programmes.

Economic viability studies prepared by the municipal planning department allow for the first two years to be exempt from the annual concession fee while construction takes place. The building work is valued at more than 13 million euros and the estimated construction period is two years.

Once the complex reaches full operating capacity, projected from its eighth year, annual revenue would reach 19.43 million euros. The largest income streams would be fitness and health activities (4.66 million), the student residence (4.11 million), tennis and padel courts (3.96 million), restaurants and events (2.21 million), the wellness and spa centre (1.44 million), the sports residence (1.42 million), the museum and shop (792,000) and underground parking and sponsorships (808,000).

Annual operating costs are estimated at 14.04 million euros, with staff accounting for the largest share at 6.58 million. The company's annual gross operating profit would therefore reach 5.38 million. After direct taxes and depreciation on the initial investment, the operator’s projected annual net profit, or free cash flow, would stand at 4,391,451 euros.

The council will score bids out of a maximum of 100 points. Formula-based criteria will account for up to 60 points, criteria assessed through qualitative judgement for up to 37 points and collaboration with the council and social improvements for up to three points.

Under the formula-based criteria, bidders can earn up to 40 points for their investment in construction and up to 20 points for offering an annual concession fee above the minimum.

The qualitative assessment will award up to 22 points for the sports club and residence proposals, the technical quality of the facilities and the added value of links to an internationally renowned tennis figure. A further 15 points will be available for creating a sports-themed museum.

The final three points will reward financial and social improvements, including contributions towards scholarships.

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