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Brazil’s Cruzeiro abandons membership in search of new investors

December 2 – Cruzeiro has become the first major club in Brazil to transition from non-profit status to a corporate model, allowing the club to sell shares to new investors.

Cruzeiro President Sérgio Santos Rodrigues said: “Among the major challenges ahead, one of the biggest is turning Cruzeiro into a club-company. “It’s been a long business, from day one of the administration, with dozens of meetings and meetings, many of them in the Senate and House of Representatives.”

This week, he confirmed that the club had become a company after Cruzeiro’s general assembly approved the change in August. ‘Asseciação Cruzeiro’ will now hold 100% of the shares, but can sell 49% to investors from both Brazil and abroad.

In Brazil, clubs are structured as associations, not companies, and are owned by members. Most are still social clubs, with paid members and many sports teams, such as volleyball, rowing and basketball. As non-profit organizations, the clubs do not have the legal tools to receive and return investments, severely limiting their mode of operation.

Rio de Janeiro’s Botafogo, who has just been promoted to Serie A, is also considering a company model. Botafogo’s internal politics and realities have so far prevented a change of organizational model.

“And I repeat what I have said a few times, openly: our job is to make the Cruzeiro solid and balanced for our children and grandchildren,” says Rodrigues. We remain steadfast in this aim. ”

In Serie B, Cruzeiro, once the club of Brazilian legend Tostao, has had a rough season, finishing 14th, just five points above the relegation zone, but the hierarchy and the fans. Hopefully the club-corporate model will now allow once-proud outfits to balance books and build for the future.

Contact the writer of this story at moc.l1638455918labto1638455918ofdlr1638455918owedi1638455918sni @ i1638455918tnuk.1638455918ardni1638455918mas1638455918

http://www.insideworldfootball.com/2021/12/02/brazils-cruzeiro-drop-member-ownership-search-new-investors/ Brazil’s Cruzeiro abandons membership in search of new investors

JOE HERNANDEZ

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