Business
Enero 13, 2023 - < 1 min

Plans to boost Brazil's soccer league

Two groups of investors are trying to transform the business model of the Brazilian soccer championship.

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World Cup fever is over (except in Argentina, obviously). But soccer enthusiasm is still in the air. Including the financial sector. 

In Brazil, the country of soccer par excellence, two rival investor groups are exploring the formation of a new league with a business model similar to that of Europe's.business model, reports the Financial Times. According to the British newspaper, with a new model, in which the clubs manage the championship - and the television broadcasting rights - instead of the Brazilian Football Confederation, the value of the Brazilian soccer business could increase significantly, reaching the revenues of the French League in 10 years, one of the investors told the Financial Times.The Brazilian Football Confederation, one of the investors involved told the Financial Times.

One of the groups is headed by Codajas Sports Kapital, whose main shareholder is the founder of a Brazilian sports, media and entertainment investment consulting firm. It is advised by BTG Pactual and is in talks with Mubadala, Abu Dhabi's sovereign wealth fund.. Codajas has an agreement with 16 of the clubs in the A and B series of the Brasileirãothe Brazilian soccer championship.

The rival group, advised by the investment firm XP, has a similar project and is in talks with a group of U.S. investors. It has the backing of 26 clubs. Market insiders point out that the only way these projects will materialize will be if they merge or reach a mutual agreement. In the meantime, the fight may be as intense as a soccer final. Will it go to penalties?