Coritiba is experiencing decisive days for the approval of the sale of 90% of Sociedade Anônima do Futebol (SAF) to Treecorp Investimentos. Earlier this month, a contract was signed between the company and the club.
Professionals hired by SAF already work on a day-to-day basis, but for the agreement to become effective, some processes are still necessary.
On May 30th, the deliberative Council will meet to vote on the project. A day later, it will be the turn of the partners. The election will be done virtually, with the participation of all partners up to date until the date of disclosure of the edict.
Meet who are the new strong names of Coritiba
It is worth remembering that, last year, the agenda for transforming Coxa into SAF was authorized by 95% of the partners. However, Coxa understands that it is important to go through this process now that it has a defined investor.
In addition, the judge responsible for the Judicial recovery (RJ) also needs to position itself on the sale. After these processes, the agreement is finalized.
And what will be the next steps? Is the investment immediate? O ge will answer the main questions on the topic.
What will be the division and duration of the contract?
A company controlled by investment funds, managed by Treecorp, will own 90% of SAF. The other 10% will be controlled by the Association. The time for contractual obligations is 10 years. After this period, the SAF continues to belong to the company.
With the SAF approved, what’s the next step?
With the agreement approved, the assets and liabilities related to football will become the responsibility of SAF, which will be controlled by Treecorp. All areas are under the responsibility of the company.
Who will manage football?
Football, like every club, will be managed by Treecorp. The professionals chosen by the company will have the decision-making power in SAF’s day-to-day activities. Player signings, coaching change, football department.
What will be the role of the elected board?
The elected board, representative of the Association, will have the role of supervising. It will be able to elect a member of the Board of Directors and a member of the Supervisory Board. The club’s acting president, Glenn Stenger, is tipped to take one of the positions.
In what decision does the Association have veto power?
The Association has veto power in decisions that impact its rights and in matters related to the history of the club, such as shield, flag, symbol, anthem and color changes.
What will be the investment in this first year?
Per year, the company must spend a minimum of BRL 120 million or 50% of revenue, whichever is greater. This involves wages and the money used to buy athletes. This total amount must reach at least R$ 120 million. In the event of a fall, the minimum amount is R$ 50 million.
What about Couto Pereira? What will happen?
The stadium will remain in the possession of the Association, managed by the elected board, but with a contract for the assignment of use to the SAF for 50 years. The estimated value is R$ 500 million for the renovation of Couto Pereira.
SAF will have seven years to start work, respecting the rules established in the contract, such as a total capacity of at least 30,000 seats, 60% of covered seats and 100 cabins.
How is the club’s debt?
The association’s debt will be totally paid off by SAF over a period of 10 years, respecting the terms and conditions negotiated with creditors. It will transfer the amounts to the Association to comply with payments.
The main points of the agreement
- Full payment of club debt – around BRL 270 million.
- Construction of a new training center – BRL 100 million.
- Refurbishment and modernization of the Couto Pereira stadium – BRL 500 million.
- Another BRL 450 million for the operation (over 10 years, in order to guarantee the minimum investment in football per year).
What is Treecorp
Treecorp is an investment manager based in São Paulo. This is the first time that a company of this nature is involved in the purchase of a football club in Brazil.
The company is managed by three managing partners: Filipe Lomonaco, Bruno D’Ancona and Danilo Soares. Participates in its advisory board, also as a minority partner, businessman Roberto Justus.
Treecorp operates with what the financial market calls private equity, that is, investments in companies that are already consolidated. In this case, the focus is usually on businesses that still have great potential for growth. Its portfolio includes companies in the retail, health, technology and financial services sectors.
The negotiation with the civil association of Coritiba, represented by its president, Glenn Stenger, lasted about eight months. If you consider the entire period in which the manager studied football, to map out investment opportunities, it comes to about a year.
The choice for the club from Paraná took into account a number of factors, such as the size of the crowd, the potential for expanding the business, with consolidation in the first division and the foundation of the club league, and the current state of Coritiba. Although it had financial problems, the association equated them with judicial recovery and has cleared assets.
A relevant factor in Treecorp’s decision to invest in Brazilian football was the arrival of foreign investors. As soon as Botafogo and Vasco announced the agreements with John Textor and 777 Partners, respectively, management professionals noticed that the market would undergo transformation and would become liquid – that is, investors interested in buying and selling clubs.
Tags: Coritiba experiencing decisive days approval sale SAF steps coritiba--