How Societies Football (SAF) can turn the tide – Money Times

John Textor Futebol Botafogo
Botafogo joins a model that could be the future of Brazilian football with investor John Textor (Photo: Vitor Silva/Botafogo)

The football The Brazilians have long suffered from two main criticisms: the disorganized calendar and the lack of management in clubs. It is worth noting that the epidemic has only exacerbated the situation, with a more chaotic calendar, and stadiums emptying lockers The clubs suffered a huge blow.

Looks like the financial problem has gained a helping hand, and Law No. 14193on August 6, 2021, who created Football Association (SAF), thus generating greater organization in club management. So clubs can become clubs – companies, A very popular model in the major leagues of the world.

According to sports market consultant Amir Somogyi, “SAF is another opportunity for the Brazilian market today to change the management of football.” He adds that he likes models like Bayern Munich.

“My dream is for the big clubs to imitate this strategy, retaining a large part of the control over the shares, and selling part of it to the big companies,” he says.

The international context of the Sudanese Armed Forces

In Brazil, clubs are mostly non-profit civil associations, whose deliberations boards exercise oversight. Offshore, there is a wide range of possibilities which include corporate, publicly traded, private ownership, etc.

In Germany, for example, the old associations that manage clubs need at least 50% of the shares plus one to ensure sovereignty with regard to decisions.

This system is called 50 + 1. Bayern Munich, for example, owns 75% of the shares owned by the Bayern Munich association, 8.33% for Audi, 8.33% for Adidas, and 8.33% for Allianz.

Portugal has a private limited liability company scheme – Sociedade Anônima Desportiva (SAD). In this way, NGOs continued to be the largest owners of companies, but they also began to sell stakes in the corporate structure of the clubs to businessmen and other companies.

In Porto, 76% of the share capital belongs to Porto Associação, 7% belongs to António Luís Alves Oliveira, 7% belongs to Joaquim Francisco Alves Ferreira de Oliveira and 10% is diluted among minority shareholders.

How can SAF change football?

Ratified in August 2021, Law 14.193/2021 authorizes clubs to organize themselves in the form of anonymous associations do Futebol (SAF), which is nothing more than a special and simplified tax system, with monthly collection in one document of income tax, PIS / Cofins and CSLL contributions and Social Security, based on 5% in the first five years of validity and 4% from the sixth year onwards, but not levied on revenue from the sale of sports rights to players.

From a financial point of view, the SAF can raise both private resources (in the form of futures bonds, private fixed-income bonds issued by clubs), and public resources, through sports incentives.

On the other hand, the club must engage in sports educational projects, without gender discrimination, linked to formal education.

In addition, the clubs will also be able to:

  • investing in the training of athletes, including women;
  • benefit from the income generated from the transaction of your sports rights;
  • Raising funds by broadcasting matches and organizing sporting events.
  • exploit the intellectual property rights owned by SAF or the company and the original assets, including real estate;

Amir Samuqi provides an idea of ​​the capabilities of the Sudanese Armed Forces. “Imagine a company that earns $500 million and pays 5% taxes. This is possible under this special tax regime,” he says.

Botafogo, South Brazilian Federation

On March 11, American businessman John Textor’s purchase of 90% of SAF became official. It is estimated that at least R$400 million will be invested in Alfinegra. At least, because Textor can increase scrolls.

In January, President Dorsicio Melo stated that the SAF would contribute 200 million Brazilian reais annually, half of which would go to football.

The current “Textor era” has delighted black and white fans, by providing debt forgiveness and new hires. The team is currently in the G4 of the Brazilian championship, in addition to occupying the fourth place in average attendance, having earned a profit of 1.5 million Brazilian riyals in the last three matches with the host team.

But it’s not just the fans who are happy. Cases like Botafogo show that SAF could be the new way to run Brazilian football clubs.

Not giving an opinion

The Money Times It publishes media articles of a journalistic nature. This publication does not constitute an investment recommendation.

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