A new wave of football’s access to the capital market may be ongoing. The relationship between traditional clubs and Faria Lima already had more or less successful flirtations, and the model of Football Joint Stock Companies (SAFs) It’s an element that can change the game.
In recent months, there have been two signs of approaching: at the beginning of October, the São Paulo Football Club announced that Galapagos Capital and OutField will . A few days earlier, the Clube Atlético Mineiro announced the first broadcast of calls debentures-fut since the approval of the SAFs Law. THE Enter dispute this Sunday (10) the Brazilian Cup final against Flamengo, at Arena MRV, from 4pm.
“We are going through a moment of transformation. We have already started to see some alternatives not only leaving the clubs, but coming to the clubs”, says Pedro Daniel, executive director of Ernst & Young. In his assessment, the search for managers for business in the football market demonstrates the maturation of the industry.
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With restricted access to credit alternatives, football clubs often need to expose themselves to high-interest, short-term debt to finance themselves. This is the case of São Paulowhose fund aims to reprofile obligations with banks that currently exceed R$200 million. The amounts, contracted to compose the cash, mostly mature between 2024 and 2025.
The fund composed of Galapagos and managed by OutField intends to extend terms and reduce interest. It uses receivables related to broadcasting rights negotiations, naming rights and sponsorships.
Associations or SAF?
For Pedro Daniel, from Ernst & Young, the case of the São Paulo tricolor may be an exception in a scenario in which clubs in the SAF model should have an easier time accessing direct financing options. THE São Paulo It is not SAF, but an association.
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An element that contributes to its assessment is the figure of shareholders in SAF, with committed capital and a certain representation vis-à-vis creditors. Furthermore, unlike associative model management, SAFs are not subject to elections, which increases creditors’ confidence in longer-term financing.
Play against, however, a still incipient regulatory framework. “It is unlikely that we will see, at first, first-tier banks carrying out large projects in the sector. There is a lack of financial infrastructure, more robust regulation that mitigates risk, especially for these banks”, he says.
In August 2023, the Securities and Exchange Commission (CVM)issued an opinion providing guidance on the possibilities of SAFs in the capital market. In a new publication in August this year, the body defined that company clubs can issue fut debentures without the need to register with the local authority.
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The resource raised, according to the law that regulates SAFs, must be used to develop activities or pay expenses, expenses or debts related to the typical activities of these companies – that is, in soccer.
Atlético-MG issues first fut debenture
O Atlético Mineiro it was the first club to issue this type of debenture. The Minas Gerais club saw its net debt fall from R$2.1 billion to R$ 1.3 billion in 2023, after contributions from shareholders in the migration process to a SAF. Part of the obligations contracted by Galo in recent years were precisely with some of the partners.
According to information registered with the CVM, Galo must use the funds raised to pay off current debts and extend its debt profile. The offer is for pick up R$ 105 millionwith a closing date of March 2025.
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“Different [em relação ao fundo estruturado pelo São Paulo] what we have in this new profile of Galo. There has already been an amortization, there is already a more efficient operation. Now it’s a search for more cash flow adjustment in the medium term. We start looking for another type of mechanism”, explains Pedro Daniel.
Since the creation of the SAFs, the Faria Lima has been looking more closely at football. Managers such as XP and BTG were close to negotiations involving large clubs. The profile of access to the capital market, however, is different from negotiations involving participation, given in contexts of clubs close to bankruptcy.
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