Modernising reforms in Brazilian football, which include discussions about a new league modelled on English football, are attracting high-profile backers, including Emirati royalty and multiclub conglomerates, who view Brazil as a next frontier in the global sports industry.
Brazilian football is one of the enigmas of global sport.
The country enjoys a near-unrivalled status as a talent factory — most of the
biggest clubs in the world, from Real Madrid to Manchester City, boast
Brazilian stars on their rosters. Even
FA cup surprise package Maidstone United have a Brazilian goalkeeper.
Yet many of its own
major clubs have long underperformed off the pitch — and are barely known
outside of Brazil. A lack of professional management has been blamed for the
weak financial position of many clubs and a failure to realise the sport’s
commercial potential. This is exacerbated by the early departure of many of the
country’s best players to European leagues, with the allure of much bigger
salaries.
Total turnover in Brazil’s first division was R$6.9bn
(€1.3bn) in 2022, found a study by the consultancy Convocados — well below the
revenues earned by the top five leagues in Europe. In a bid to raise broadcast
receipts, proposals are also afoot to create a new nationwide competition in
Brazil that is capable of reaching a much wider overseas audiences.
The great hope of fans and executives alike is that more
money will convince younger stars to stay at home for longer. But to succeed, the grand plans will have to
overcome the infighting and questionable practices that have often blighted the
domestic game and stunted its off-field development. Unpaid bills or wages have not been uncommon
at Brazilian clubs and in the past there have even been cases of corruption,
embezzlement and match-fixing.
The catalyst for change in Brazilian football was a 2021 law
encouraging clubs to operate as businesses, instead of the traditional model of
non-profit associations. Previously, only two top-flight clubs were run as
companies. By creating a novel corporate structure that enjoys favourable tax
rates, the legislation has opened the door to investors.
Miami-based investment firm 777 Partners, which counts
England’s Everton in its portfolio of teams, took a majority stake in Vasco da
Gama in Rio. Esporte Clube Bahia was bought by City Football Group, the Abu
Dhabi-controlled owner of a dozen sides including Manchester City.
The initial takeover deals were clubs in financial distress
with scant other options, says sports lawyer Eduardo Carlezzo. He reckons the
law is working. “Botafogo, which was always broken, almost became champions,”
he told the Financial Times.
To reformers of the game in Brazil, the ultimate goal is the establishment
of a new tournament controlled by the clubs, rather than the national
confederation. Inspired by the English Premier League, the idea is to
turbocharge the marketing of TV and other media rights by selling them
collectively. Until now, Brazilian clubs have signed contracts on an individual
basis with the country’s largest media group, Globo.
Fans have displayed little opposition to takeovers in
principle, even if poor results have on occasion sparked criticism of owners
from influential supporters’ organisations. Yet among some larger teams there
is resistance to the notion of inviting outside shareholders. The presidents of
Corinthians and Palmeiras have explicitly ruled out the idea of a SAF, saying that
the clubs belong to the fans or that they are already professionally managed.
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