Brazilian financial giants BTG and XP collaborate to unify Brazil’s Championship league, aiming to streamline broadcast rights and stadium advertising.
This consolidation effort seeks to boost the football market’s revenue significantly.
The football landscape features Liga Forte União (LFU) with 26 smaller clubs and Liga do Futebol Brasileiro (Libra) hosting 19 top-tier teams.
XP, through its venture with Life Capital Partners (LCP), has invested R$2.6 billion ($520 million) in LFU’s broadcast rights for the next 50 years.
Simultaneously, BTG, in collaboration with Mubadala Capital, has proposed nearly R$5 billion ($1 billion) to support Libra, pending final approval.
The push to unify these groups has intensified with upcoming broadcast negotiations with Globo on the horizon.
However, the trend of individual negotiations by leading clubs after Carnival has momentarily paused the progress towards a single league.
Despite these hurdles, there’s a prevailing optimism among the financial backers.
BTG Pactual’s Bruno Amaral remains hopeful that discussions will pick up and advance quickly after the current negotiations, aiming for progress in the second quarter.
Financial institutions’ strategic move into sports taps into a growing market, promising investment in Brazilian football clubs and innovative engagement models.
The SAF law of 2021 has eased sports investment, with banks facilitating major deals and advising on rights negotiations.
This new era began with the financial rescue of clubs like Cruzeiro and Botafogo.
The focus is now shifting towards more financially stable clubs with higher revenue potential. BTG, for instance, is considering investment opportunities with Fluminense’s SAF.
BTG and XP collaborate to fortify Brazilian football’s finances, introducing innovation, governance, and entertainment formats.
The goal is to enhance the appeal and profitability of Brazilian football, promoting its stature both domestically and internationally.