The behind-the-scenes of Ronaldo’s multi-million dollar investment to buy Cruzeiro club in Brazil

RIO DE JANEIRO, BRAZIL – This Saturday, the historic former striker of the Brazilian national team, Barcelona and Real Madrid, Ronaldo Nazario, announced, together with the main people involved, the purchase of a majority stake in his former club Cruzeiro in Belo Horizonte, Minas Gerais state.

The Phenomenon, who played for La Bestia Negra as a teenager in the early 1990s, closed the deal for 400 million reais (US$70 million) with the help of Brazilian investment bank XP, one of the largest of its kind in Latin America.

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This entity took on the role of a financial advisor in what was a historic negotiation for Brazilian soccer since it was the first to be carried out after the clubs were authorized to become SAF (Sociedad Anónima de Fútbol), as of the enactment of Law no. 14,193, which was activated on August 6, 2021.

At the same time, the transaction agreement does not directly mention the name of the former striker. Still, it was carried out through his company Tara Sports, registered in the Spanish capital (Madrid). Its objective is to provide consulting and advisory services in the entertainment environment both at the artistic and sports level.

In addition, this pact that concluded on Saturday is also subject to a series of conditions, the main one being that the 45-year-old former player must invest 400 million reais in the medium and long term in everything related to the growth of the club that today is in the second division of Brazil.

“The operation contemplates the financial and operational rebalancing of the club’s soccer department, with a sustainable growth plan in the medium and long term. The completion of the transaction is subject to the fulfillment of a series of preconditions,” highlighted XP.

One of the alternatives envisaged to start generating revenue is to enter the crypto-asset market, as detailed by the site specialized in financial matters Bloomberg Linea: “Starting next Monday, fans will be able to invest in the team with the launch of the CRZ fan token, a niche that began to be explored by the Brazilian soccer team in August.”

“I am thrilled to have concluded this operation,” Ronaldo assured in a video published by Cruzeiro’s president, adding that he wants to “take the club to the place where it deserves to be.”

This is the second foray into management for the former PSV Eindhoven, Inter Milan, AC Milan, Barcelona, and Corinthians striker. Ronaldo bought a 51% stake in Spanish club Real Valladolid in 2018.

While neither he nor Cruzeiro provided further significant details, XP said in a statement that it “seeks to help the Brazilian soccer industry with professionalization, capitalization and the opening of new opportunities.”

BACK TO THE ROOTS

Last Saturday, the future of Cruzeiro had an unexpected turnaround: it will have an investment made by Ronaldo Nazário of around 400 million reais to become an owner by acquiring 90% of the shares of the joint-stock company.

The negotiation was made in São Paulo, and a video on social networks showed the celebration of the new owner of the Minas Gerais team. “Too happy to have completed this operation. To say that I have a lot to give back to Cruzeiro, to take Cruzeiro where it deserves to be. We have a lot of work ahead of us. I ask the fans to reconnect with the club and go to the stadium because we will need a lot of strength and unity. We have the ambition to make Cruzeiro Cruzeiro again”, stated Ronaldo. The Club is in decline and was relegated from the ‘Brasileirão’ for the first time in its history at the end of 2019 and is going through bad results in the B Series.

Cruzeiro had two other effective proposals on the desk. “The operation provides for the financial and operational rebalancing of the club’s soccer department, with a sustainable growth plan in the medium and long term. The completion of the transaction is subject to the completion of a series of conditions precedent,” recited the statement from the company that will take power at the club.

According to the director of XP Investimento, Pedro Mesquita, who led the operation, details still need to be finalized to complete the transaction. “Soccer in Brazil has to change the way it is managed. You still have many things to do to complete the operation. You have a big debt with Cruzeiro. We have all the paperwork, renegotiations to do. But it is the beginning of a new trajectory,” said Ronaldo’s right-hand man in the negotiations.

Ronaldo played for Cruzeiro between the second half of 1993 and the first half of 1994. He played a total of 58 official matches and scored 56 goals, making him the 35th top scorer in the club’s history.

With information from Infobae