nba trade deadline:Vasco comes to an agreement games tonight

 nba trade deadline: Vasco comes to an agreement games tonight

Deal closed by Jorge Salgado in Miami still needs approval from club members nba trade deadline and advisors; group also assumes a commitment to pay Vasco debts

Vasco is moving towards the constitution of a company to manage its football and, more importantly, towards the sale of majority stake to a foreign company. Club president Jorge Salgado is in Miami and has just closed a deal with lakers game tonight Partners.

The negotiations took three months. After five different versions, the Vasco board arrived at the proposal that it considers appropriate for the club. The agreement is still "non-binding", that is, the document does not generate obligations for the parties involved, until the deal is consummated -

 There must be approval from Vasco's partners and counselors.777 Partners proposes to invest R$ 700 million in Vasco's SAF (Sociedade Anônima do Futebol) over the next few years, in exchange for the acquisition of 70% of the shares of this company. There is also a predisposition to invest in the renovation of São Januário, which will potentially cause the operation as a whole to exceed one billion reais.

On the Basque side, the negotiation was conducted by the president, Jorge Salgado; by the CEO, Luiz Mello; by the vice president of finance, Adriano Mendes; and by the legal vice president, Zeca Bulhões.

The business structure is similar to that adopted by Botafogo and Cruzeiro in sales to John Textor and Ronaldo. Vasco will establish a company and transfer to it assets and rights related to football. This company, in turn, will have its control sold to 777 Partners, which will be responsible for managing it. Values ​​and conditions are different from the cases of Botafogo and Cruzeiro.

The ge obtained detailed details about the proposal made to Vasco, exclusively, and reports them below, so that the supporter and the Vasco associate can form an opinion on the sale of the company that will manage football.

1:- who is the investor

 Partners was founded in 2015. Based in Miami, United States, the company invests in different fields: aviation, financial services, insurance, media and entertainment.

In football, the company fully bought Genoa, from Italy, and acquired a minority stake in Sevilla, from Spain. There is also interest in buying other teams, in Europe and beyond.

 also has stakes in a company that operates in Brazilian football, 1190 Sports, responsible for selling broadcasting rights for the Brazilian Championship.

Still in the field of football broadcasts, the company invests in Fanatiz, a streaming service that mainly shows football championships for the United States market.

 2:-  How much will be invested

In the offer that pleased Vasco's management, Partners is responsible for investing R$ 700 million in SAF over the next few years, dealing with the full payment of the club's debts - today estimated by managers at R$ 700 million -, in addition to to potentially invest in the renovation of São Januário.

Salgado signed a "pre-agreement" in Miami. The sale of the 70% of the club-company, through these values, has not yet been consecrated, as it will depend on the approval of Vasco members. There is a period of 90 days (three months) for all political and bureaucratic procedures (due diligence, drafting the contract, etc.) to be carried out.

Regarding the investment, there will be an anticipation of R$ 70 million, so that Vasco can deal with expenses and very short-term debts. This amount will be contributed by  to the club immediately, in the form of a conventional loan, and will be screened by the Supervisory Board.

If the sale of the stake in SAF takes place, these R$70 million will form part of the R$700 million in global investment. Therefore, the  will still need to inject another R$ 630 million in the company.

In the event that the deal is not  all star weekend concluded in the next three months, these R$ 70 million will be considered a common loan, which must be returned by the club with an interest rate and a fixed term.

The investment by  Partners will serve to accelerate the recovery of Vasco football, through infrastructure and reinforcements for football. The construction of training centers will be guaranteed by contract, within the amount that the Americans are willing to contribute. Players will be signed to make the team competitive again.

3:-   how society works

If the sale to  Partners takes place, the company that will manage Vasco's football will initially be divided into 70% for investors and 30% for the non-profit civil association. In other words, there will be partnership between the parties in the management of football from 2022 onwards.

The majority share gives Americans the power of decision in everything related to the practice of the sport, from administrative and financial issues to the conduct of football in their daily lives. But the model sets limitations on what new owners can do.

Questions related to the identity of the institution are protected. Even if the new owner wants to make changes to the names, symbols, colors, anthems and host city, to name a few examples, the association Club de Regatas Vasco da Gama (CRVG) will have veto power.

There will also be anti-dilution rules, so that the CRVG never owns less than 10% of the total shares. This could happen, in the future, if the partners decide to issue new shares to attract new rounds of investment. The rule prevents the association from being harmed, with dilution, in this case.

In practice, the SAF will have a professional structure, with the existence of executives for the main positions: CEO (general director), financial director, legal director, etc. This structure will respond to a Board of Directors and a Fiscal Council, composed of members appointed by the two partners: all star weekend Partners and CRVG. And these bodies will organize and execute what the shareholders understand as appropriate for the conduct of the business.

To encourage Vasco's competitiveness in the field, the board negotiated guaranteed minimums in relation to expenses – similar to what was done by Botafogo, but with different amounts and deadlines. The concern is to ensure that the club does not become a satellite of a foreigner when it is part of a football multinational.

4:-  Who owns the stadium?

In the agreement that has just been signed between Vasco and 777 Partners, it is established that the São Januário stadium will continue to be the property of the civil association. The club-company, controlled by the new owners, nba games tonight will take over the management of the equipment through a lease contract, which will last for 50 years, renewable for another 50 years.

The value of this rent is still being defined by the board, and the amount that will be transferred to the civil association, CRVG, will finance its social activities and other sports.

In addition, the costs of the sports complex will become the responsibility of the SAF. This will make the association drastically reduce its daily expenses, as the maintenance of São Januário represents a large part of them.

It is natural that, in order to make the company's business more profitable and competitive, the new owners want a redesign of the stadium. Therefore, there is a forecast to invest an additional amount in its renovation, with complete renovation of the infrastructure.

As it is a complex issue, which involves the rights of equity partners, Vasco's board intends to debate it over the next three months, until a format is reached that contemplates the interests of the old owners (the partners) and the new ones (the American investors).

5:-  How would the association finance itself?

A relevant part of this story is the political approval, to be granted by partners and board members from Vasco, for the deal with 777 Partners to be completed. For that, it will be necessary to have a model that allows the civil association, also composed of social activities and other sports, to survive after the separation from football.

Renting São Januário is one of the possible sources of money, but not the only one. In addition to it, the agreement provides that SAF will pay the association an additional amount of R$ 1 million per year, as remuneration for the use of Vasco's brand in football.

Currently, according to the directors involved, the monthly fees of the equity partners generate around R$ 6 million a year. This does not include the part of the fan-partner, nba preseason who does not have the right to vote and is not involved in social life. These monthly fees will continue to be paid in full by the association.

Once Vasco's fiscal situation is regularized, the association will be able to formulate projects to attract sponsorships via the Sports Incentive Law. This will open up another source of income to finance Olympic sports, traditional in São Januário, such as basketball, volleyball and rowing.

In summary, the annual revenues of the civil association will be as follows:

R$ 6 million in monthly membership fees

BRL 1 million in royalties for the Vasco brand

Y (to be defined) for the rent of São Januário

X (to be defined) in incentivized sponsorships

Selling shares to fans

In parallel with the negotiation of 70% of the capital of the club-company to 777 Partners, the board of Vasco foresees the possibility of negotiating another 10% in the market, nba trade deadline so that ordinary fans can become owners of minority percentages of SAF.

The operation will operate through the issuance of debentures. These are debt securities, generally used in the financial market by companies that are raising funds, but that do not want to get into debt through conventional loans.

Consider that a hypothetical fan wants to invest in Vasco SAF. At first, he buys a number of debentures for a certain amount. These debentures give him the right to receive the money back after a certain period, plus interest, as a form of personal investment.

In a second moment, these debentures can be converted into participation in the company. That is, instead of recovering the investment with interest, this fan would exchange the debt securities for a percentage of the club-company. From then on, he would own a minority share of Vasco SAF.

Since 70% of the company will be negotiated with 777 Partners for a pledge of BRL 700 million in investments, in the understanding of those responsible for the deal, this 10% of the company will be worth BRL 100 million. The amount will be used as the basis for convertible debentures.

If the project goes ahead, under these circumstances, the SAF design will be:

70% of 777 Partners

20% off the Vasco da Gama Regatta Club

10% of minority partners

The R$ 100 million raised through this sale will be invested in the company's operation, that is, it would also be invested in infrastructure and reinforcements for football.

6:-  who pays the debt

Vasco officials estimate that Vasco's debt is currently around R$700 million. The audited balance sheet for 2021, to be published by April 30, will confirm this number.

The club-company will be responsible for paying this debt, within the limits established by the SAF Law, lakers next game recently created by the Brazilian Congress to encourage clubs to migrate to the business model.

In practice, theAF Vascaína will have to dedicate 20% of its current monthly income to the payment of civil and labor debts. This financial transfer is organized by the Centralized Execution Regime (RCE), a mechanism established by the same law, to which Vasco has already adhered, despite not having opened his company yet.

The RCE gives the company a period of six to ten years to fully pay off the debts negotiated through it, with judicial monitoring. If SAF is unable to clear them within that period, these debts will be incorporated into the company.

Additionally, Sociedade Anônima do Futebol will need to pay the agreed payments via a tax transaction, a negotiation recently made by Vasco with the Attorney General's Office of the National Treasury. This agreement accounts for most of the tax debts.

Theoretically, the BRL 700 million invested by  Partners can only be applied to infrastructure and players. Once Vasco gains competitiveness and increases its revenues, it is these revenues that would give it greater ability to pay debts over the next ten years. Also theoretically,sixers game tonight if revenues do not rise and there is a lack of money to deal with indebtedness, it is possible that part of this investment will be redirected to this purpose.