CRUZEIRO SAF • TENTANDO EXPLICAR TODO O PROCESSO FEITO PELA XP

Summary

In this video, the speaker discusses the ongoing transformation of Cruzeiro into a football corporation under Brazil's 'club-empresa' law. Through a detailed conversation with Pedro Mesquita, director of XP Investimentos, the speaker explains the process of attracting international investors to purchase a 49% stake in the club. The discussion covers key aspects such as the project's current phase, the selection of investors, how the club will be managed post-sale, and the handling of Cruzeiro’s debts. The process is competitive and complex, with the goal of securing the club’s financial future and competitive success.

Takeaways

• 😀 The transformation of Cruzeiro into a football joint-stock company (SAP) is underway, leveraging the 'clube-empresa' law.
• 😀 XP Investimentos, led by Pedro Mesquita, is managing the process of seeking investors for the transformation.
• 😀 The process involves multiple stages, including an analysis of Cruzeiro's financials, potential, and the club's relationship with its supporters.
• 😀 There are currently 15 investors interested in purchasing a stake in Cruzeiro, with expectations to double this number by December 2024.
• 😀 The process is not solely based on the highest offer; it also evaluates the proposed plans and vision for the club's future.
• 😀 By December, Cruzeiro expects to receive formal proposals from investors, which will be carefully reviewed alongside the investors’ strategic projects for the club.
• 😀 The top 2-4 investors, based on the proposal evaluation, will advance to the final stage of negotiations for acquiring the club’s stake.
• 😀 The investor who secures the purchase will gain control over the club, with management rights clearly outlined in the contract.
• 😀 A new CEO, appointed by the investor, will oversee the club’s football operations, with clear goals and performance metrics set for the club’s future.
• 😀 The club's debts will be managed by the investor, with a focus on minimizing debt payments and optimizing revenue for reinvestment into the club.

Q & A

What is the purpose of the Cruzeiro transformation into a football SA (Sociedade Anônima do Futebol)?

The transformation aims to turn Cruzeiro into a 'club-company' under Brazil's Club-Company Law. This will allow the club to attract investors and manage its finances more effectively.

Who is leading the search for investors in Cruzeiro's transformation?

Pedro Mesquita, the director of XP Investimentos, is leading the search for investors who will help transform Cruzeiro into a football SA.

What kind of process is being followed to find investors for Cruzeiro?

The process is competitive, with XP Investimentos reaching out to potential investors globally. They are evaluating both financial contributions and the strategic plans proposed by investors.

How many investors are currently interested in purchasing a stake in Cruzeiro?

Currently, there are 15 interested investors. Pedro Mesquita believes this number will likely double by December as the publicity around the project increases.

What criteria will be used to select the investor who will buy 49% of the club?

The selection will not be based solely on the highest financial bid. Instead, the investor's project proposal, including how they plan to manage and improve the club, will be a significant factor in the decision.

When will the final decisions regarding the sale of 49% of the club be made?

The final decision will take place in December when proposals will be evaluated. The final steps of the sale, including contracts and the transfer of ownership, are expected to be completed by March of the following year.

Who will have control over the club after the investment is made?

The investor will have control over the club's management, including appointing a CEO and setting business goals. The investor will manage the football operations and strategic direction of the club.

How will Cruzeiro's debts be handled by the new investor?

The debts will be frozen and negotiated as part of the transformation. The investor can choose to negotiate a reduction or settlement of the liabilities, and 20% of the club’s revenue will go toward paying these debts.

What revenue sources will the investor control once they purchase the club?

The investor will control all revenue generated by the football operations, including television rights, membership fees, and other income. After addressing the debts, the surplus will likely be reinvested into the club.

What is the expected timeline for completing the Cruzeiro transformation process?

The entire process is expected to be completed by the end of the first quarter of the next year. Final decisions, contracts, and the official transfer of ownership are planned for March.