The club intends to establish a fund of R$240 million to improve its financial situation over the next four and a half years
The Deliberative Council of São Paulo approved, on Wednesday evening (2), the Credit Rights Investment Fund (FIDC) which will be jointly managed by Galápagos Capital and Outfield.
Only 40 of the 225 councilors opposed it, which corresponds to 82.22% approval. The project passed without any abstentions. The creation of the fund aims to raise R$240 million to resolve the club’s bank debt, which at the end of last year exceeded R$220 million.
On the other hand, with a new contractual governance system, with a spending ceiling of R$350 million or 50% of gross revenue – whichever is lower –, São Paulo will be responsible for ensuring its sustainability and payment to shareholders from below. Therefore, the club will have to evolve its financial situation over the next four and a half years and regain a leading position on the national scene.
The president of Sao Paulo explains it
To guarantee payment to the two management companies, Tricolor will offer its proceeds from the sale of athletes, broadcasting rights, licenses, naming rights and sponsorships.
“The fund is the tool we needed so that the club can start resolving the currently existing debts that hinder and interrupt cash flow, with high interest and short term maturity. From its implementation, we will be able to reduce costs and prepare the club for its centenary with a more sustainable management, which will allow a greater ability to compete with opponents with more financial power. We will have a management shock and we will also implement a budget committee to monitor the flow of São Paulo,” he explained the president of San Paolo. Paolo, Julio Casares.
San Paolo fans, therefore, have no apparent reason to worry. After all, the club has been working to carry out an operation of this kind for more than a year, supporting itself from an economic, technical and managerial point of view. It is understood by Morumbi that the qualification of the current squad is sufficient for next season, requiring only one or two occasional reinforcements.
Coach Luis Zubeldía, with a contract until December 2025, is aware of these new steps taken by the club, which establishes the continuity of the partnership for next year.
“The operation is innovative and responds to the recent trend that brings Brazilian football clubs increasingly closer to the capital market as an alternative for fundraising. The fund will contribute to improving the financial health of São Paulo. Resources will be saved and, therefore, there can be an investment in sporting performance, that is, more time and more money concentrated on football”, quoted Andrea Di Sarno, a member of the Galapagos.
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Source: Terra
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