After Brazilian football team Botafogo clinched a sensational league and cup double at the end of last season, its owner John Textor didn’t waste an opportunity to troll his naysayers. On social media the US businessman and serial soccer investor posted a photo of himself kissing the Copa Libertadores trophy, alongside a WhatsApp message from a detractor.
“You don’t understand anything in football and [sic] waste
of time to talk to you. And you will lose everywhere you go,” it read.
Tagged in the screenshot was Paris Saint-Germain, whose
Qatari president Nasser Al-Khelaifi has clashed with Textor, who is also the
owner of Olympique Lyonnais in France and no stranger to public dust-ups.
Yet Botafogo’s success, less than three years since being
rescued from financial ruin by its American benefactor, was more than just a
personal triumph for Textor. It also provided a showcase for the wave
of recent investments into Brazilian football, which has attracted
hundreds of millions of dollars in funding promises over the past few years.
Despite an abundance of talent and a famous national passion
for the sport, many of the country’s clubs — traditionally run as non-profit
associations controlled by fans — have often fallen prey to financial
mismanagement and struggled off the pitch.
The drive to reform the business side of the game was
catalysed by a 2021 law encouraging teams to become limited companies. It
helped draw in the likes of Manchester City proprietor City Football Group,
which purchased Esporte Clube Bahia in 2023 and pledged to invest R$1bn.
Textor told the Financial
Times he believes Botafogo will serve as an inspiration for others. Since
the takeover it has increased revenues fivefold and reduced debt
levels. The team brought home its first ever Libertadores — the South
American version of the Champions League — in November, which also secured the
Rio-based side a spot in the new Club World Cup this summer. The future looks
bright.
But Brazil may soon have increased competition in the battle
to win over international investors.
In neighbouring Argentina, free-market libertarian president
Javier Milei is pushing for a similar “privatisation” of clubs. And a
group of investors this week (including two already invested in EFL club
Wrexham) agreed to buy Colombian team Club Deportivo Seguros La Equidad. Both
countries share a key attribute that has helped draw foreign capital to Brazil
— a rich source of footballing talent.
Textor — and Brazilian football in general — have benefited
from early mover advantage. But others in the region are on the move.
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