American entrepreneurs have clubs in many countries and are starting to see Brazil

Strong presence of investors To us That is already true in world football. Of the five major European leagues, there are already 19 clubs with US owners, in particular England And Italy. With SAF (Sociedad Anónima do Futebol) legislation in 2021, Brazilian football integrated this movement, with the “landing” of Florida companies in the country.

When the American millionaire John Dexter Botafogo bought shares and signed an agreement with Vasco 777 Partners. Capitol Football, owned by businessman Joseph Tagroza, a minority partner who exacerbated the financial crisis in Bordeaux, France, between 2018 and 2019, held talks with US-MG, but the parties did not reach an understanding.

Speechwriter and 777 shareholders They also own European clubs and are part of a growing movement known as the “Multi Club Ownership”, which has formed a network of many football teams around the world. Both have recently acquired teams from Belgium (Molenbeek and Standard Liège). Dexter owns shares in Crystal Palace in the UK, with 777 partners owning Genoa in Italy, as well as a minority shareholder in Sevilla, Spain. 777 Partners Director Juan Arsenicas said, “We see teams from markets with potential for growth. Estado.

Reasons to invest in Brazilian football With the January to December agenda, the almost indescribable source of talent, the large number of fans and the strength of the game in the country. In the opinion of the international market, this is a worthless league worthy of revenue growth in all areas. However, one of the problems pointed out by experts regarding investments in national football is legal uncertainty.

New investors also see the potential for revenue growth from the new and lucrative sale of Brasilirao broadcast rights, run by the League of Independent Clubs from the CBF, which is still being streamlined, with its operations only set to begin in 2025. Current television contracts are coming to an end.

Examples

Part of the Premier League’s success came along with off-field and lucrative broadcasting rights sales. It is a type of springboard that investors design in both Italy and Brazil. Well-structured clubs such as Palmeiras and Flamenco have annual revenues of R $ 1 billion – for example, which is considered low compared to the European leagues.

“We do not know what this league will look like and how it will make money for clubs. Today’s market is not one of increasing TV broadcasting revenue in the short term. Therefore, growth (of these values) should be slightly slower than the extreme examples of the UK and Spain. Convocados Cesar Grafietti, expert and consultant partner, analyzes.

For two years after the epidemic Brazilian football was still in the back burner, which cooled some businesses. There were survival seasons.

Eye on Italy

The arrival of Americans has also recently begun to occur in Italy. On Calcio’s Top Flight, eight of the twenty clubs, including Milan and Roma, are owned by American businessmen.

Has an emotional connection with the country – some of the billionaires are Italian-Americans – interested in culture, cuisine and history. But the main reason is the discredited league, which has the potential for rapid revenue growth.

Italian football was once the best and most valuable in Europe. For those involved, this is a market opportunity that is hard to deny. Americans believe they can better manage calcium by significantly increasing revenue and modernizing the country’s old grounds. It is a strong league and dreams of getting closer financially with English and Spanish rivals.

The “pits” will not be obvious to American investors who are unaware of their new business. Many of these American investors have experience in other sports, especially American football, baseball and basketball, which are organized in a completely different way from traditional football outside the country. There are no foreign leagues competing in these American games, and owners need to learn how the game works.

American League

Major League Soccer, the major football league in the United States, is organized and structured differently from the rest of the world. For example, MLS has no access or exit. Different rules intersect on and off the field, and investors need to adapt to this aspect, which will be crucial in the sporting and financial success of a foreign club.

“Over time, due to growth and demand, US owners have become more expensive, even cheaper MLS owners, despite the revenue. Were low and relatively high returns, ”explains economist Graffiti.

As financial and sporting risks fall into the lower segment, clubs must continue to invest efficiently, making it harder to make a profit. Especially when there are competitors funded by governments like Manchester City (from Qatar) and Paris Saint-Germain (from the United Arab Emirates). It’s hard to compete with them.

The main targets of American businessmen are usually serious financial problems and irregular clubs. One of the strategies used is breakthrough: buying a club at a low point, tidying up the house, settling bills, improving revenue, bringing the team back on the growth path and reselling at a higher price than they bought.

This culture is widely used in the acquisition of companies in the United States. The implication is that both Vasco and Podafoco are undervalued and have the potential to grow by their US investors.

English, the largest market

But England’s football can only find a large number of American investors. Today, nine of the 20 clubs in the English first division belong to the United States. The “first generation” of Americans in English football acquired seven clubs between 2005 and 2012.

Currently, the three leading English teams, Arsenal, Liverpool and Manchester United, are owned by American businessmen who also own the rights to American football, baseball and basketball.

Arsenal’s billionaires Stan Cronke and Manchester United’s brothers Avram and Joel Glaser have been the target of years’ opposition from fans for tactical decisions that could be considered wrong as rivals pile up more and more trophies.

The main reason for the criticism was the lack of success in the game. In May last year, hundreds of Manchester United fans besieged Old Trafford Stadium and marched on the pitch with banners and flags urging Glazers to leave. The arrival of Cristiano Ronaldo, who returned to United almost over with rivals City, calmed the mood.

One of the controversies is how the family acquired the club through “Leverage Buyout”. It is practically borrowed and the money received is used precisely to buy a property, which is responsible for this loan – the assets are used as a network.

“In the UK, like Liverpool, we have some of the best U.S. management models with investments in analytics and business development, but many instances of foreclosure are generally considered by fans to be the worst in terms of credit growth and limited investment. Ownership” Evaluates Decca. Division, so you will be in a difficult place. “

Motivation

Liverpool, current owner, American John W. Henry, Comrades Tom Hicks and George Gillette Jr. were appointed in charge of the club in 2010, which caused a stir among the fans due to the severe financial crisis. The club went from hell to heaven after the move.

“The acquisition of their (Hicks & Gillette Jr.) club, another foreign exchange purchase, added to Liverpool’s staggering £ 351m debt, including £ 237m loan from Royal Bank of Scotland in a matter of weeks. Says an excerpt. League: How the Premier League became a rich and revolutionary business in the world game.

The scene facing Henry’s Fenway Sports Group (FSG) in Liverpool in 2010 was confusing. On the field, the team finished only seventh in the Premier League, with disappointing results. The financial situation was mild and the rope around her neck was tight.

Over the past 12 years, Henry has added money to the club from his company, increasing revenues through excellent sponsorships, making upgrades to increase Anfield’s ability to raise revenue, and having to sell big names like Fernando Torres and Luis Suarez to balance the bills. Excluding business revenue, sports days and broadcasting rights sales, it increased from £ 67.7 million in 2010 to £ 188 million in 2019.

Technical contract

It took a while, but the success came on the field. In 2015 everything started to change and German coach Jrgen Klopp was hired to lead the team’s restructuring process. After that, there are five titles, including the Premier League and the Champions League.

“It’s not about the investor’s appearance, it’s about the structure and the product. Liverpool’s owners had a clear vision of the restructuring. It had a very well-defined management model. , That was studied by Graffiti.

In the minds of American investors, every business must be well-organized, well-managed, and profitable. Brazilian football has begun to offer them such conditions.