Featured image credit: Custodiotiago1986/CC BY-SA 4.0/Edited for size
Campeonato Brasileiro Série A football club Coritiba is set to be acquired by Brazilian private equity firm Treecorp Partners in a landmark deal for the domestic game that will lead to redevelopment of its Estádio Major Antônio Couto Pereira.
The deal, for a 90% stake in the club based in the southern state of Parana, marks the first investment by a Brazilian private equity fund in SAF, the privatisation model that was established for domestic teams following the approval of a law permitting outside investment.
The agreement gives Coritiba an enterprise value of R$1.3bn (£207.6m/€238.8m/$262.4m). Treecorp will invest R$550m over the next 10 years – R$100m of which is to be channelled towards the construction of a training centre and R$450m for investment in the team.
There is an additional possibility that R$500 million will be invested in stadium renovation, while Treecorp will pay off the club’s debt, which amounts to R$250m.
The Couto Pereira first opened in 1932 and has a current capacity of around 40,500. Coritiba claimed a first for the Brazilian stadium market in November with the opening of a sensory room at the venue.
Treecorp’s deal comes after City Football Group (CFG), parent company of English Premier League club Manchester City, last week completed its takeover of Esporte Clube Bahia. CFG acquired a 90% stake in Bahia, which returned to Série A this season, committing to invest up to R$1bn to clear debts and invest in the Salvador-based club.
Commenting on the Coritiba deal, Bruno D’Ancona, a partner at Treecorp in charge of the transaction, told Globo’s Pipeline news service: “We were intrigued when we saw two American funds buying two clubs from Rio de Janeiro and we delved into this topic.
“In developed markets, there are many funds dedicated to sport, revenues are growing, and it is one of the only things that people still want to see live in the digital age.”
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