Clubs in the Brazilian Football League (Libra) have a new alternative by signing up with Mubadala Capital, an Arab fund interested in investing in Brazilian football. Related Lance! Are the Biz Giants in danger? Understand the financial implications of losing the Champions League Bid! Biz 06/06/2023 Launch! Biz Champions League 2022/23 Awards: check the amount paid by Uefa Lance! Biz 06/10/2023 Launch! Biz Mubadala Capital and Serengeti: funds discovered to negotiate billion-dollar investment in Brazilian football Lance! Biz 06/05/2023 Highlights: - The new offer only provides for the formation of a commercial bloc, without the participation of resources in the organization of the Brasileirão; - The operation will cost R$1.3 billion to R$2.3 billion – depending on the number of clubs – for 12.5% of the rights; - If the division scenario is confirmed, the offer will be similar to Serengeti's offer to Forte Futebol. What changes compared to the latest offers? In a virtual meeting held this Monday morning with Libra members, Mubadala Capital presented another alternative to the 18 clubs that make up the group: the formation of a commercial bloc to negotiate broadcasting rights, without offering real connectivity. If this model was chosen, the clubs would receive a cash payment in exchange for the transfer of 12.5% of the block's broadcasting rights over 50 years. The value of the proposal is 50% of the full offer check – R$4.75 billion for 20% -, but is in line with the new percentage discussed. Ignoring commission payments to publishers, Libra's 18 current members have a combined net worth of R$1.3 billion. If the Forte Futebol teams join the group, their value will increase until reaching a maximum of R$2.3 billion, in the unlikely scenario of a commercial group with 40 clubs, but without the formation of a league. It is worth highlighting that the news does not change the two proposals already presented – one is R$4.75 billion for 20% of a league with more than 33 clubs, the other is R$4 billion in an intermediate scenario, which with 18 to 33 clubs. Trying to woo Vasco, Botafogo and Cruzeiro There is an explanation for Mubadala Capital's new offer. Due to differences between the directors of Libra and Forte Futebol, the foundation of the league is restricted and the Arab fund wants to guarantee, in the worst case scenario, a shareholding in a commercial team, according to L! . Furthermore, it is understood that the new resource could facilitate an agreement with Vasco, Cruzeiro and Botafogo, which are part of Libra, but have not yet signed a new MOU (memorandum of understanding). One of the trio's complaints was the precise clause that conditioned the payment of R$4.75 billion or R$4 billion to Mubadala's participation in the organization of the Brasileirão. Libra directors have a new offer from Mubadala Capital (Photo: Disclosure) How many clubs will receive per commercial block? Given the latest moves, the formation of two trading blocs is more likely to happen in the near term. On the other hand, Mubadala Capital will invest R$1.3 billion for a 12.5% stake in 18 Libra clubs. On the other hand, Serengeti needs to hire 22 clubs from Forte Futebol to validate an intermediate proposal of R$2.2 billion for 20% of the commercial bloc. In proportional terms, the two proposals have the same value. The difference is that the value offered by Serengeti is fixed for a scenario of 22 to 35 clubs, while Mubadala's proposal increases or decreases according to the entry and exit of clubs. In this case, each group divided the money according to their criteria. On the Forte Futebol side, distribution to current members has been defined since April – click here to see more details. The calculation for allocating Mubadala Capital's new offer is simple: each Libra club will receive half of the amount allocated to the entire proposal, R$4.75 billion. Flamengo, for example, will receive R$316 million for the sale of 20% of the league's rights and will have a stake of R$158 million for 12.5%. And in a commercial block of 40 clubs? In a possible scenario of a commercial confederation with 40 clubs, Serengeti's proposal to Forte Futebol clubs has an advantage. The full offer from the American fund is R$4.76 billion net for 20% of the league's rights – with 36 or more teams – and also considers the formation of a commercial consortium. Proportionally, the value is R$2.97 billion for 12.5% – against R$2.3 billion for Mubadala. In this case, Libra's main advantage over Forte Futebol is cash payment – which can be attractive for clubs with cash flow problems. The LFF reimbursement will be made in three installments. However, this scenario is highly unlikely. When clubs merge into a commercial entity, the tendency is for the league to be formed to organize the Brasileirão and Série B as a single entity. In this case, Mubadala Capital's initial proposal is R$4.75 billion for 20% of the league's commercial rights. *Article updated at 6:40 pm adding the comparative table to the current format. Follow Lance! on G o o g l e News Most read 1 Off the field Vini Jr.'s attitude towards Mbappé for Real Madrid draws attention on the web 2 Off the field Brasileirão: check title chances after Botafogo's draw and Palmeiras' victory 3 Off the field Fans of Botafogo blames partial defeat: 'It calls failure' 4 Launch! Biz How much did Rayssa Leal earn by winning the SLS stage in Tokyo? 5 Flamengo Flamengo Stadium has a capacity for 78 thousand people and is European inspired; Check out the photos in Lance's newsletter! Stay up to date on sports and your favorite team in just 1 minute of reading! Sign up The best sport of your morning! 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Clubs in the Brazilian Football League (Libra) have a new alternative by signing up with Mubadala Capital, an Arab fund interested in investing in Brazilian football. Related Lance! Are the Biz Giants in danger? Understand the financial implications of losing the Champions League Bid! Biz 06/06/2023 Launch! Biz Champions League 2022/23 Awards: check the amount paid by Uefa Lance! Biz 06/10/2023 Launch! Biz Mubadala Capital and Serengeti: funds discovered to negotiate billion-dollar investment in Brazilian football Lance! Biz 06/05/2023 Highlights: - The new offer only provides for the formation of a commercial bloc, without the participation of resources in the organization of the Brasileirão; - The operation will cost R$1.3 billion to R$2.3 billion – depending on the number of clubs – for 12.5% of the rights; - If the division scenario is confirmed, the offer will be similar to Serengeti's offer to Forte Futebol. What changes compared to the latest offers? In a virtual meeting held this Monday morning with Libra members, Mubadala Capital presented another alternative to the 18 clubs that make up the group: the formation of a commercial bloc to negotiate broadcasting rights, without offering real connectivity. If this model was chosen, the clubs would receive a cash payment in exchange for the transfer of 12.5% of the block's broadcasting rights over 50 years. The value of the proposal is 50% of the full offer check – R$4.75 billion for 20% -, but is in line with the new percentage discussed. Ignoring commission payments to publishers, Libra's 18 current members have a combined net worth of R$1.3 billion. If the Forte Futebol teams join the group, their value will increase until reaching a maximum of R$2.3 billion, in the unlikely scenario of a commercial group with 40 clubs, but without the formation of a league. It is worth highlighting that the news does not change the two proposals already presented – one is R$4.75 billion for 20% of a league with more than 33 clubs, the other is R$4 billion in an intermediate scenario, which with 18 to 33 clubs. Trying to woo Vasco, Botafogo and Cruzeiro There is an explanation for Mubadala Capital's new offer. Due to differences between the directors of Libra and Forte Futebol, the foundation of the league is restricted and the Arab fund wants to guarantee, in the worst case scenario, a shareholding in a commercial team, according to L! . Furthermore, it is understood that the new resource could facilitate an agreement with Vasco, Cruzeiro and Botafogo, which are part of Libra, but have not yet signed a new MOU (memorandum of understanding). One of the trio's complaints was the precise clause that conditioned the payment of R$4.75 billion or R$4 billion to Mubadala's participation in the organization of the Brasileirão. Libra directors have a new offer from Mubadala Capital (Photo: Disclosure) How many clubs will receive per commercial block? Given the latest moves, the formation of two trading blocs is more likely to happen in the near term. On the other hand, Mubadala Capital will invest R$1.3 billion for a 12.5% stake in 18 Libra clubs. On the other hand, Serengeti needs to hire 22 clubs from Forte Futebol to validate an intermediate proposal of R$2.2 billion for 20% of the commercial bloc. In proportional terms, the two proposals have the same value. The difference is that the value offered by Serengeti is fixed for a scenario of 22 to 35 clubs, while Mubadala's proposal increases or decreases according to the entry and exit of clubs. In this case, each group divided the money according to their criteria. On the Forte Futebol side, distribution to current members has been defined since April – click here to see more details. The calculation for allocating Mubadala Capital's new offer is simple: each Libra club will receive half of the amount allocated to the entire proposal, R$4.75 billion. Flamengo, for example, will receive R$316 million for the sale of 20% of the league's rights and will have a stake of R$158 million for 12.5%. And in a commercial block of 40 clubs? In a possible scenario of a commercial confederation with 40 clubs, Serengeti's proposal to Forte Futebol clubs has an advantage. The full offer from the American fund is R$4.76 billion net for 20% of the league's rights – with 36 or more teams – and also considers the formation of a commercial consortium. Proportionally, the value is R$2.97 billion for 12.5% – against R$2.3 billion for Mubadala. In this case, Libra's main advantage over Forte Futebol is cash payment – which can be attractive for clubs with cash flow problems. The LFF reimbursement will be made in three installments. However, this scenario is highly unlikely. When clubs merge into a commercial entity, the tendency is for the league to be formed to organize the Brasileirão and Série B as a single entity. In this case, Mubadala Capital's initial proposal is R$4.75 billion for 20% of the league's commercial rights. *Article updated at 6:40 pm adding the comparative table to the current format. Follow Lance! on G o o g l e News Most read 1 Off the field Vini Jr.'s attitude towards Mbappé for Real Madrid draws attention on the web 2 Off the field Brasileirão: check title chances after Botafogo's draw and Palmeiras' victory 3 Off the field Fans of Botafogo blames partial defeat: 'It calls failure' 4 Launch! Biz How much did Rayssa Leal earn by winning the SLS stage in Tokyo? 5 Flamengo Flamengo Stadium has a capacity for 78 thousand people and is European inspired; Check out the photos in Lance's newsletter! Stay up to date on sports and your favorite team in just 1 minute of reading! Sign up The best sport of your morning! Article More News Stay up to date with everything! See more Lance! Biz Academia CBF brings together presidents and authorities for debates on the future of football management 11/25/2024 - 2:11 pm Bidding! Biz Understand how the empire was formed by Leila Pereira, president of Palmeiras, 11/25/2024 - 12:40 pm Bidding! Biz Find out how much Cruzeiro lost for runner-up in the Copa Sudamericana 11/23/2024 - 7:27 pm Bid! Biz Midea is the official sponsor of the Sul-Americana and the 2025 Women's Libertadores 23/11/2024 - 4:26 pm Bidding! Biz How much did Rayssa Leal earn by winning the SLS stage in Tokyo? 23/11/2024 - 2pm Bidding! Biz Find out how much Cruzeiro will win in the Copa Sudamericana final 23/11/2024 - 09:34 Bid! Biz Brasileirão is the 2nd most profitable transfer league in the world; see list 11/23/2024 - 06:30 Bidding! Biz Racing x Cruzeiro: see the economic differences between the finalists of the Copa Sudamericana 23/11/2024 - 05:15 Related Bid! Are the Biz Giants in danger? Understand the financial implications of losing the Champions League Bid! Biz 06/06/2023 Launch! Biz Champions League 2022/23 Awards: check the amount paid by Uefa Lance! Biz 06/10/2023 Launch! Biz Mubadala Capital and Serengeti: funds discovered to negotiate billion-dollar investment in Brazilian football Lance! Business 06/05/2023