Hard Rock International’s plans for an integrated resort (IR) in Athens, Greece, may be stumbling.
Originally, the Greek government was supposed to provide financial help, but now the government has asked Hard Rock and its partner Gek Terna to pony up a larger investment.
Data Journalists reported August 10 that it appears the banks who were lined up to support the project have asked for another €120 million ($132.18 million) up front, on top of the €250 million ($275.37 million) originally agreed to.
Both companies have said they will abandon the project if this impasse isn’t resolved.
This threat has real heft, since the IR project has the potential to generate more than €6 billion (US $6.6 billion) in tax revenue for the government over three decades.
It could also give a booster shot to the revitalization efforts for the former Hellinikon airport region near the capital, which is where the IR would be located.
However, according to Data Journalists, those very projections have been cast in doubt for some of the banks that had previously committed to the project. Their withdrawal created a vacuum that Hard Rock and Gek Terna have been asked to fill.
Those hoping to salvage the deal point out that the Greek government could tap a recovery fund and take out as much as €450 million ($495.67 million). The flaw in that concept is that the fund derives from the European Union and was intended to help the country recover from the effects of Covid-19 on its economy, not invest in gambling.
