Fluminense to vote on SAF later this year, investor talks ongoing | OneFootball

Fluminense is working with the forecast of bringing the Football Corporation (SAF) project to a vote by the members at the beginning of the second half of this year. The tricolor board has been holding weekly meetings with investors to discuss the details of the proposal and advance the stages of the process.

The information was gathered by journalist Lucas Ribeiro from O Globo. Internally, the club considers an optimistic scenario where the approval could occur around July, after the completion of ongoing analyses and negotiations.

One of the main campaign promises of president Mattheus Montenegro, the project was presented to the Deliberative Council last September by the management company LZ Sports. Since then, representatives of the club and investors have been discussing financial, legal, and administrative aspects of the potential SAF.

Before reaching the vote, Fluminense intends to complete the due diligence process, which is the detailed analysis of the club's financial, legal, and accounting situation by mid-April. From this stage, the parties should advance in drafting the final contract.

According to the proposal presented, the division between SAF and association will depend on the size of the club's debt at the time of sale. Considering the current liability of about R$ 871 million, investors would hold 65% of SAF, while the association would retain 35%.

The project foresees a total estimated investment of R$ 6.4 billion over ten years in football, a value that also includes the club's own revenue growth during the period. Initially, a R$ 500 million contribution is planned, with R$ 250 million paid upfront and the rest within two years, with part of the amount aimed at reducing the debt.

The annual investment would not start at the projected average value. The expectation is that initial contributions will be around R$ 480 million per season, gradually increasing over the decade.

In discussions between the parties, the club is also addressing security mechanisms in case agreements are not fulfilled. Among the penalties foreseen is the immediate suspension of dividend payments, in addition to other possible penalties that are still being evaluated.

This article was translated into English by Artificial Intelligence. You can read the original version in 🇧🇷 here.