Avaí SAF plan targets football investment, debt relief, asset protection | OneFootball

After more than three years of discussions on the subject, Avaí Futebol Clube has received a proposal for the creation of its Football Corporation (SAF).

The Investment Commitment Agreement, which will be made available to board members for review over the next few days, will be examined at a meeting of the Deliberative Council on Tuesday, June 30. The document guarantees investment in professional football and youth development, payment of historic debts, infrastructure improvements, and coverage of the Lion’s day-to-day expenses.

The Club’s partner will be Kactus Capital, an investment management firm with 16 years of experience in the Brazilian market and part of a major English family office.

In addition to Kactus, the group brings together investors with complementary financial and sports profiles. Among them is former player Rodriguinho, a club idol and two-time Brazilian champion with Corinthians, who also played for Cruzeiro and the Brazilian National Team, and who serves as a link between the market, the squad, and sports management. The group also includes investors with experience in clubs in Brazil and Europe, in operations involving teams such as Coritiba and Le Mans (France).

For some time now, Kactus and Avaí have been partners in financial operations that ensure resources for the Club’s maintenance. The firm has experience in football, having been a pioneer in the country in structuring a fund that released resources for clubs in Liga Forte União.

The minimum investment planned for the Lion is more than R$ 400 million. In the first three years of the SAF, the partner commits to investing at least R$ 25 million per year in professional football and the Club’s infrastructure. It also undertakes to maintain minimum payroll levels for football operations. Improvements to and maintenance of Ressacada Stadium and the Training Center are expected to receive another R$ 5 million over five years. The youth academy will receive short- and medium-term investment, with R$ 20 million secured over ten years. As immediate cash support, a bridge loan of R$ 5 million to the Club is also planned.

At the same time that it invests in structural improvements and the Club’s competitiveness, the partner will also be responsible for settling the debts that currently make Avaí’s management nearly unworkable. According to a study by a committee formed by the Deliberative Council to analyze the matter, the Lion’s volume of liabilities has nearly doubled over the past three years. The total accumulated debt jumped from R$ 159 million in 2023 to R$ 295 million now.

The Commitment Agreement also includes safeguards to protect Avaí’s history and assets. It guarantees that ownership of Ressacada Stadium remains with the Association and that the SAF will not be able to decide on changes to symbols such as the crest, brand, nickname, anthem, and colors. In addition, it stipulates that the Club will hold 1/3 of the seats on the SAF’s Board of Directors, even while holding 10% of the shares, and opens the possibility for Avaí supporters to become investor-members of the Club, acquiring in the future a stake of at least 10% in the SAF.

Bernardo Pessi, president of Avaí, speaks at a press conference about the proposal the club received and presents a draft of the contract

Photo: Leandro Boeira / Avaí F.C.

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