Santos announced this Friday (27) an agreement with SDC Sports LLC, a North American long-term investment group, for a possible sale of the club.
The non-binding exclusivity proposal, accepted by Marcelo Teixeira, president of the black and white team, gives the company access to the club to carry out an in-depth analysis of its financial situation. Santos, in turn, will also be able to verify the group’s capacity for a large investment.
The proposal foresees an investment of R$1 billion, responsibility for the club’s debt — estimated at a similar value — and control of 80% of the shares. The due diligence must be completed within 60 to 90 days.
A non-binding proposal does not obligate purchase or sale. This is an initial expression of interest, which may progress after analyzing the documents. During this period, the club cannot negotiate with other companies.
Afterwards, it will still be necessary to change the club’s statutes and complete procedures in the Deliberative Council and in a members’ assembly. The proposal presented includes safeguards for the preservation of Santos’ history, such as the impossibility of changing the name, official anthem, uniform colors and headquarters.
“The agreement establishes non-binding negotiations and will allow an in-depth analysis of strategic, financial and operational aspects between the parties, while preserving the full autonomy of both regarding the eventual formalization of a definitive investment in the possible SAF of Santos”, informed the club, in a note.
Also according to the statement, XP Investimentos and Rothschild & Co. act as financial advisors for the possible transaction.
SDC Sports LLC is a private investment fund based in the United States and owned by the Santo Domingo family, with Lauren Santo Domingo among its founders. The family controls Grupo Valorem, owner of TV Caracol, in Colombia, has a stake in AB InBev and 10% of the NFL’s Washington Commanders.
See note from Santos
Santos Futebol Clube and SDC Sports LLC, a global investment platform focused on the long-term development of clubs, inform that they have entered into an agreement that grants exclusivity to begin conversations about a possible investment by SDC Sports LLC in a Football Anonymous Society (SAF), which could be constituted by the Club.
The agreement establishes non-binding negotiations and will allow for an in-depth analysis of strategic, financial and operational aspects between the parties, while preserving the full autonomy of both regarding the eventual formalization of a definitive investment in the possible SAF of Santos Futebol Clube.
The objective of these negotiations seeks to strengthen the Club’s operation as a whole, improve its competitive performance, boost its brand, improve its market positioning and accelerate the development of the areas of professional and grassroots football.
Santos Futebol Clube and SDC Sports LLC count, respectively, on XP Investimentos and Rothschild & Co as their financial advisors for the possible transaction.
