Bahia and City agreement has debt paid and ‘Libertadores club’ goal

Bahia and City agreement has debt paid and ‘Libertadores club’ goal
Bahia and City agreement has debt paid and ‘Libertadores club’ goal

The board of Bahia and the City group reached an agreement on the proposal for the purchase of SAF from the club. Among the main conditions: full and immediate payment of the club’s debt, minimum annual investment in football and a plan to regularly be in Libertadores. The agreement needs to go through the Deliberative Council and members of Bahia to be approved.

The announcement of the SAF proposal was made by Bahia on Tuesday (20). The details will be known at an informal meeting this Friday (23) at the Club’s Deliberative Council in a presentation by the club’s board and the City group. From there, the Board will issue an opinion with a recommendation on the proposed purchase of SAF: the partners vote on whether or not to approve the sale of the company. If all goes well, the intention is for City to start operating Bahia football on January 1, 2023.

The negotiation between the parties takes months to reach its final form. These are some of the conditions set out in the proposal obtained by the blog and which will be revealed on Friday. See in topics:

Purchase

City propose to buy 90% of SAF from Bahia, with the remaining 10% remaining with the club. According to the SAF Law, this means that Bahia will have the ‘golden share’ that allows it to veto changes in name, colors, city, uniform, etc. In fact, Bahia will continue to be called Bahia, without the addition of City. The amount to be invested could not be obtained.

Debt

The agreement provides for the City group to pay off Bahia’s debt in full immediately. The amount raised is around R$ 260 to 270 million. This amount may be slightly lower because there are actions against the club that should not reach the full amount charged. This debt includes the deficit for the current year 2022 in which the club operated in the red for being in Serie B.

One of the obstacles resolved in the negotiation was the club’s debt with Opportunity referring to the previous partnership made by Bahia.

investment guarantee

There is a minimum annual investment forecast in Bahia football by City. This amount, which was not disclosed, corresponds to a team budget in the first half of the Brazilian table, that is, among the top ten. There is no sports goal set because the understanding is that it would be difficult to penalize for non-compliance.

Libertadores Plan

Within the planning outlined by Bahia and City, the team should become a regular visitor to Libertadores. For this, the bet is that, even though it is not one of the main budgets in the country, Bahia will have the efficient sports management of City.

This includes the know-how and technology involved in managing the group for football. This is considered the great asset of the partnership: the team will do more with the same money. The idea is for the project to be consolidated in 15 years.

Second shelf within the group

Within the City group, Bahia will have the second investment in football, after Manchester. But if we consider other projects, the value will also be lower than that of New York City, as the group will invest in the construction of a stadium for the US team, which exceeds the total amount destined for Brazil. Disregarding this, the investment in Bahia in football itself will be greater. Therefore, the board considers that the promise is that the club will become the second team in the group, after Manchester City.

City has ten teams around the world, one in South America: Montevideo City Toque. Bolivar is a partner team. With Bahia in Libertadores, Montevideo will not be able to participate in the tournament.

No unlimited money, with global support

No, Bahia will not become an unlimited money club like Manchester City if the deal is approved. At the same time, the project is not for profit and predicts that the money earned will be reinvested. The size of Bahia on the national scene will also depend on its fans, the sale of shirts, partner-fan, tickets, negotiation of players. etc.

But there will be another asset: Bahia has the promise of the entry of the global sponsors of the City group. In fact, there is a group of companies from Abu Dhabi that make investments in the City.

Another advantage is having exchanges between players in the group that can occur as long as they are costly. There are FIFA rules against unlimited lending within group complexes.

The article is in Portuguese

Tags: Bahia City agreement debt paid Libertadores club goal

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