Brazilian soccer clubs reach a US$500 million deal with investors


Most of the major professional soccer clubs of Brazil are about to sign an agreement with investors that could end a battle between rival leagues fighting for control of the sport in the country.

Under the agreement, the Brazilian company Life Capital Partners and Serengeti Asset Managementyou will acquire a 20% interest in the commercial rights of the participating teams for 50 years, according to a statement issued Wednesday by investors.

The air conditioningAgreement will value the stake at US$500 millionaccording to a person with direct knowledge, who asked not to be identified because the information was confidential.

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Despite the historic successes of the Brazil national team, its local leagues have been plagued by years of financial mismanagement, while its clubs have systematically sold their best players to wealthier European teams. In an attempt to change things, local teams have explored creating a league structure that can keep soccer’s best talent in the country for longer and attract foreign investment through the sale of lucrative broadcasting rights.

some 25 teams have already adhered to the proposal presented by Life Capital Partners, according to the statement. The group also made big teams Botafogo, Cruzeiro and Vasco da Gama, which were part of a rival league project called Libra, which planned to give a bigger share of the revenue to the bigger clubs.

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Pound is backed by the investment arm of the Abu Dhabi sovereign wealth fund, Mubadala Investment Co. Botafogo, Cruzeiro and Vasco have been willing to help Libra and LFF reach an agreement and dispel the doubts of some smaller clubs about the criteria for sharing revenue from broadcasting, according to Bloomberg reported earlier this year.

The new agreement has a structure similar to those signed in European football, where CVC has acquired shares in the audiovisual rights of the French Ligue 1 and Spanish La Liga.

LCP is an independent asset management company based in Brazil, founded by entrepreneurs and investors Wilson de Lara, Carlos Gamboa and João Leitão. New York-based Serengeti, founded in 2007 by Jody LaNasa, turned to private investment in late 2021, leading it to close its public credit fund. In that twist, the head of structured credit, Jay Eisbruck, and Raza Mujtaba, who ran public investments, also left the company.

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