The good acceptance of Flamengo’s Board of Directors after the presentation of the club’s brand internationalization project, last Thursday, increased optimism for a positive outcome.
In the presentation, which even appealed to opponents, the board showed the basics of the plan to take control of a club in Europe – Tondela is the club with which everything is moving forward.
+ Flamengo’s project in Europe is presented and has a good evaluation by the Board of Directors
During the presentation, the vice president of Finance of Flamengo, Rodrigo Tostes, chose not to mention club names, but revealed that he spoke with five teams from Portugal. The manager is responsible for running the project directly.
Gávea, headquarters of Flamengo — Photo: Alexandre Vidal/Flamengo
Flamengo’s plan has the expectation of getting, with the new club, a place in the Champions League between seven and eight years old.
Estimate for ranking in European tournaments
|Conference League||2 years|
|Europa League||3 years|
|Champions League||7 to 8 years|
During this eventual growth of the new club, Flamengo is even looking to renegotiate television rights. Liga Portuguesa’s current contract expires in 2027/2028, and it is expected to take advantage of this window to increase revenue, if the project progresses as expected.
In relation to using the European club as a showcase for players, one idea is to use base athletes with no space in Flamengo’s professional squad. The mechanism for this would be to lend these names to the new team.
In case of progress in the project, the board estimates that Flamengo can increase its equity by R$ 150 million. In the plan, the club will enter its brand, while the money will come from investors. The new red-black asset, which may be listed in future balance sheets, will result from the exploration of its brand in the new team.
The project’s next step is to get signed with a bank. Flamengo has advanced conversations with BTG Pactual and discusses commercial bases.
Within the project, the presence of a bank is a way of structuring the entire operation. BTG would be responsible for stamping the business plan, validating the plan’s calculations and projections, in addition to organizing the investor mix, should there be demand. Finally, it will be up to the bank to settle the transaction so that investors acquire a portion of the company’s company to be formed abroad.
According to investors who have already had contact with the club, the idea is to raise 50 million euros (about R$ 307 million).
– We were very pleased with the receptivity of the Board of Directors on the project concept. It was unanimous that it is an excellent path for Flamengo. Now our focus is to hire a bank and attract investors. Without investors, we cannot take the next step – Tostes told the ge.
— Photo: Disclosure