Keeping an eye on the traditional teams of football from Brazil, the investment companies 777 Partners and DaGrosa Capital are in talks to buy Vasco da Gama and América-MG, according to people familiar with the matter, following the passage of a law that encourages foreign investment.
Target of Miami’s 777, Vasco has a large fan base, but also a great debt. 777 already owns Genoa, which plays in Serie A in Italy, and has a minority stake in Sevilla in Spain.
DaGrosa, based in Coral Gables, another city in Florida, negotiates with América Mineiro, a team famous for discovering young talents, such as Richarlison de Andrade, who reached the top league of the British championship.
Like most clubs in Brazil, América-MG and Vasco are run by non-profit associations that generally hold presidential elections every three or four years. Now, private investors and equity funds are moving to take advantage of new legislation that allows for a change in control and modernization of finance in heavily indebted teams.
A representative for 777, which is co-founded by Steven Pasko and Josh Wander, declined to comment. A spokesperson for América Mineiro did not immediately respond to the report’s request for comment.
A representative of Vasco da Gama stated that the football market in Brazil will undergo profound changes in the coming months and that the club has attracted the interest of potential investors. According to him, any proposal will be analyzed internally.
Spokeswoman Lucia Gonzalez said DaGrosa has ongoing talks with a Brazilian club and that “nothing has been decided yet”. According to her, the subsidiary Kapital Football Group is the vehicle involved in the potential transaction.
Last week, in Palm Beach, also in Florida, digital entrepreneur John Textor agreed to invest about US$ 330 million in Botafogo, including the club’s debt. Fans cheered in the streets, hoping that the cash injection will bring back the team’s period of glory.
Textor, which already has a stake in UK’s Crystal Palace and owns 80% of Belgium’s RWD Molenbeek, said it was building a “family of related clubs”.
In December, legendary striker Ronaldo Luís Nazário de Lima bought control of Cruzeiro de Belo Horizonte, with the help of XP bank.
Despite having won five World Cup titles, Brazil has poorly managed and highly indebted professional clubs, with problems that have worsened due to the impact of the Covid-19 pandemic.