Vasco have become the newest millionaires in town! For R$700 million, the Sao Januário club announced the acquisition of 70% of its Sociedade Anônima do Futebol to 777 Partners, an American investment company.
The deal is the largest in Brazilian football history, but it still has to be approved by the club’s members. Aside from the investments in the squad and the structure, the firm will also take R$700 million in debts from Vasco, giving the deal billionaire status and raising expectations for the future of the organization.
More information on the arrangement between Vasco da Gama and 777 Partners, which might result in another “rich guy” in Brazilian football, can be found here.
Vasco agree sale worth millions to 777 Partners
Vasco da Gama have agreed to sell 70% of its SAF shares to 777 Partners, an American investment firm with other football-related enterprises. The deal is worth R$700 million, and it will be used to improve the club’s football over the following three years.
Vasco will also get a R$70 million bridging loan from the group. The money should be accessible in the next few days if the Deliberative Council approves it. It will be used to pay off emergency obligations, such as wage arrears, as well as to invest in the Series B team and get access.
777 Partners has agreed to contributing another R$120 million in 2022, as soon as the agreement is finalized, bringing the total investment to R$190 million in the first year. There is currently no specific split of the amounts, but if Vasco can return to Serie A in 2023, the most of the donation will be provided then.
The firm will get all of Vasco’s football assets as part of the deal, as well as the right to utilize the Sao Januário stadium. Vasco keeps its headquarters and may concentrate its investments on Olympic and Paralympic sports in the meantime.
Parties signed a “memorandum of understanding”
The sale of SAF do Vasco has not yet been made public, despite the statement. A memorandum of understanding was signed by the club and 777 Partners to bring the conditions in line. It functions as a pre-contract to control the parties’ future relationship.
Furthermore, the R$700 million offer of participation in Vasco SAF, which will be formed, is a non-binding proposition. This signifies that the plan isn’t final, and there might be revisions to the terms, values, or even the deal’s cancellation.
Next steps to formalize the agreement
After the agreement is signed, 777 Partners may commence the “due diligence” phase, which comprises a detailed evaluation of the company by the interested party in order to assess the deal’s risks. It takes 90 days to finish this treatment.
Vasco must also legitimize the deal by forming its Sociedade Anônima do Futebol and receiving the partners’ permission in the General Assembly. Until the colleagues are freed, the investment business will be unable to take over Cruzmaltino football.
The R$70 million loan is part of a larger R$700 million credit. If the agreement is violated, the loan becomes a common loan, with the interest rate and terms set by the parties.
Negotiation could be the biggest in Brazilian football history
Vasco SAF is valued at R$1 billion as a result of the arrangement, but the value is really more. 777 Partners accepts the club’s obligations, which are estimated to be in the neighborhood of R$700 million, by becoming the primary partner in Gigante da Colina’s football. As a result, the transaction values SAF at R$1.7 billion.
As a result, the deal will be the biggest in Brazilian football history. Previously, Ronaldo Fenômeno (Cruzeiro) and John Textor (Botafogo) each paid R$400 million for 90 percent of the SAF of their respective teams, much less than Vasco.
The Hill Giant’s partners at 777 Partners want to turn it into a worldwide powerhouse. Aside from the magnitude of the audience, the club is in a little better financial position than Cruzeiro and is located in Rio de Janeiro, all of which drew the group in.
There are conflicting emotions among the supporters. The likelihood of large acquisitions and a more qualified squad is a hint that things are looking up. However, moving authority from the club to a private organization raises concerns.
Who is 777 Partners?
The investing business 777 Partners is situated in Miami, Florida. The company’s portfolio is diverse, including acquisitions in industries as diverse as insurance, finance, and sports.
Genoa, in Italy, is owned by the firm, while they are minority stakeholders with Sevilla, in Spain. They also own the London Lions, a professional basketball club in the United Kingdom, as well as sports marketing and broadcasting organizations. His company, 1190 Sports, have the worldwide rights to the Brasileirão.
In football, 777 Sports intend to develop a network of clubs, comparable to the City Group, for example. Vasco da Gama is an endeavor to go in this path and generate its first example of success, while previous attempts in the sport have failed to meet expectations.