February 3 – Brazilian clubs have received an offer of 4.2 billion reias ($800 million) from an unnamed investor to form a breakaway league that would not be under the management of the Brazilian FA (CBF).
News outlet Globo reports that through intermediaries LiveMode and 1190, an investor has come forward with a substantial offer fund the new league first mooted by clubs last year.
The investor would inject US$ 800 million in exchange for 20% of the league for a period of 50 years, between 2025 and 2074. The clubs would receive the money in three annual instalments in 2022, 2023 and 2024 in a deal that would mirror some of the aspects of CVC’s investment in La Liga.
The league’s main commercial property would be the broadcasting rights for the Brasileirão and Série B, which until 2024 belong to behemoth broadcaster Globo.
In 2021, all the clubs of the Brazilian top flight and the Serie B convened to consider the path forward for professional club football in the country.
KPMG, a group led by lawyer Flavio Zveiter and Ricardo Fort, former Coca Cola executive, and LiveMode presented ideas for a future league model to the clubs.
The Zveiter group also includes outside consultants including Charlie Stillitano from Relevant Sports Group and Rick Parry, ex-Liverpool. McKinsey Brasil also offered a presentation but does not intend to head up the new league.
The different groups promised that in the new structure new revenue streams would be exploited, allowing the clubs to refinance their debts. The new league would centralize TV rights for national and international exploitation, with the different groups projecting revenue streams of 3 billion reais and cash from major investment funds and private equity.
Last June, top flight clubs announced that they wanted to establish a league governing body to run the Serie A and gain more of an influence in the administration of the Brazilian game.
In a rare moment of unity, 19 of the 20 Serie A clubs handed over a document to the CBF, stating their intent to create a league structure as early as 2022. Brazil is the only top-ten ranked country in the world where the federation still controls the running of professional club football at a domestic level.
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