The number of clubs across the top two divisions of Brazilian men’s soccer expected to sign off on a 50-year media and commercial rights investment deal that has been in the works since February is now up to at least 27.
The agreement is with US investment firm Serengeti Asset Management, Brazilian investment company Life Capital Partners (LCP), and advisor 1190 Sports (appointed in April), and is designed to centralize the commercial exploitation of club soccer in Brazil.
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The clubs are from the Liga Forte Futbol (LFF) bloc, and in a statement yesterday (June 5) Serengeti and its partners claimed that 24 have so far signed the two rights purchase agreements, with another set of teams (three or four) “completing internal procedures before joining.”
The investment firms also said that additional teams “are expected to sign in the near term” and that the transaction is subject to the usual closing conditions and regulatory review.
Two recent additions to the LFF bloc of teams are heavyweights Botafogo and Cruzeiro, both of whom were up until a few days ago affiliated with the rival Liga do Futebol Brasileiro (Libra) bloc of teams. That group has proposed investment backing from the Mubadala Capital firm.
Through the deal, the LFF investors will take a 20% stake in the media and commercial rights of the signed-up Brazilian teams for 50 years, starting in 2025. LFF, Serengeti, and Life Capital are expected to now begin planning how best to exploit these rights.
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By GlobalDataCiting a person familiar with the matter, Bloomberg has reported that the 20% stake will be valued at $500 million, up from the $480-million figure announced earlier this week.
Elsewhere in the statement, the investment firms said that the clubs completing internal procedures are Internacional, Náutico, ABC, and Atlético Mineiro.
They have also claimed that Coritiba, an LFF club that had been holding out on putting pen to paper on the deal, has now signed.
If and when all 27 clubs (or more) seal the deal, this would represent well over half the total number of teams (40) in the top two divisions.
Joseph A LaNasa, founder and chief executive at Serengeti, said: “By consolidating the management of the media and commercial rights of the participating clubs, we are excited to help transform Brazilian championship soccer into one of the best and most exciting leagues in the world, and look forward to more teams joining us as they see the success we bring to our partners and their fans.”
Carlos Gamboa, founder and a board member at LCP, added: “We are thrilled to announce the signing of these landmark rights agreements. The agreements have attracted significant interest from across the Brazilian soccer landscape because it offers a balanced distribution of revenues amongst the clubs.
“We would like to thank the clubs for their support and we look forward to working together as we look to reshape the future of Brazilian soccer, with the creation of a league for the clubs, run by the clubs.”
Top-tier Serie A clubs in LFF include Athletico Paranaense, Fluminense, Fortaleza, and Goiás.
Serengeti was advised in the process by G5 Partners and Access Media Advisory, while LFF had advice from XP, Alvarez & Marsal, and LiveMode.
Brazilian teams currently negotiate media rights deals individually, having started doing so a decade ago. Commercial network Globo is the present dominant broadcaster of domestic soccer in the country.
Clubs in Brazil first made the decision to set up an independent body in 2021, to centralize future broadcast rights agreements.
It is expected that whenever the required LFF signatures arrive, XP Investimentos will make an advance payment of up to BRL500 million ($105 million).
Image: Eurasia Sport Images/Getty Images
