Meeting with board members Sea trip It was held tonight (31), at the Barro Preto headquarters, central region of Belo Horizonte, to explain some points about the negotiations involving the sale of 90% of the SAF shares of the club to Ronaldo Nazario. The purpose of the meeting was to provide final details of the contract signed with the phenomenon and, accordingly, resolve doubts before voting on the requests requested by the manager to terminate the deal – approving the extrajudicial redemption and transfer of Tocas 1 and 2 to the company and the new meeting will take place next Monday (4).
The meeting was attended by Raposa President, Sergio Santos Rodriguez, as well as Pedro Mesquita, XP Investimentos’ Chief Operating Officer, and Gabriel Lima, who leads the SAF operation for Team Ronaldo. XP was the one who provided the final details of the signed contract terms, in 14 items.
Among them, questions were raised about Ronaldo’s liability in relation to the club’s debts and investment, the possibility of selling shares and the powers of the federation from closing the deal.
The formula remains that Ronaldo is only obligated to actually contribute 50 million Brazilian riyals. It should generate 350 million R$ in additional revenue in five years compared to the average of the previous five years. If it does not result in additional revenue, the company of the former racket will have to contribute the remaining amount
If you do not put money, Ronaldo has to return the percentage of shares that correspond to the amount he did not invest. In addition, he will have to remain on Cruzeiro’s board of directors while Tara (his company) is the parent company of SAF.
Check the final terms:
1 – Paying civil and labor debts in the system of judicial reorganization that is prepared by mutual agreement with the two parties.
2- The Sudanese Armed Forces (SAF) shall be responsible for paying the tax debt.
3- Debts related to sports (FIFA and the National Council for Sports Research) will be the responsibility of the Saudi Football Association.
4- Payment of R$50 million upon signing the investment agreement, and committed capital of R$350 million paid within five years through equity contribution and/or additional revenue above average revenue between the periods 2017 to 2021;
5- In the event of non-compliance with the investment obligation, the investor may be reduced to a proportionate share of the paid-up capital.
6- In the event of selling the majority stake to a third party, the new investor will need to comply with the requirements of the profile, in addition to following the terms of the shareholder agreement and the existing investment agreement;
7- The union will have the right of veto on matters currently provided for by law (eg: changing the street, the coat of arms, etc.).
8- The association has the right to appoint a member of the board of directors and a member of the supervisory board, and thus obtain all relevant information relating to the management of the Sharjah Art Foundation investor;
9- Ronaldo Nazario de Lima will remain, mandatorily, as a member of the Board of Directors until Tara Sports sells its majority stake;
10- Securing the sale of control for a period of 60 months or until the full commitment of the investment of R$350 million;
11- Expect the association’s additional bonus from selling control of the SAF, assuming a minimum return to the investor.
12- The option to purchase the investor’s share in cases that make it impossible for the investor to continue on the path of the existing project.
13- Cruzeiro brand license for SAF company with payment proceeds to the association after paying all its debts;
14- The right to submit the first offer for the participation of the major shareholder in the event that he initiates an orderly sale.
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