International capital can accelerate a club’s transformation. To create value without creating fresh disputes, an investment must align funding, governance and regulation from the outset.
The first step is to know the investor, ultimate beneficial owner and source of funds, and to define the acquisition structure and cross-border capital flows. Due diligence should examine liabilities of the association and SAF, asset ownership, material contracts, security, contingencies and obligations to the CBF and FIFA.
The agreement must provide for the day after closing.
Price and equity stake are only part of the deal. Documents must address funding commitments, voting rights, reserved matters, board composition, security, indemnities, deadlock resolution and exit mechanisms.
When an investment crosses borders, currency, tax, competition, regulatory and compliance matters must also work together. A sound transaction is one where corporate structure, contracts and football rules tell the same story before, during and after closing.