Brazil has not yet attracted the world's biggest football investors, according to Rodrigo Monteiro de Castro, a lawyer specializing in Sociedades Anônimas do Futebol (SAFs), Brazil's football corporation model.
Speaking on CNN Esportes S/A on Sunday, August 9, Monteiro de Castro said Brazil's recent tax reform has created a challenge for the development of SAFs by significantly increasing the tax burden on club-companies. He said the rate had initially been set to potentially rise from 4% to 8.5%, but after negotiations it was fixed at 6%.
Legal uncertainty cited as barrier
Monteiro de Castro said changes of this kind undermine the predictability needed to attract capital to Brazilian football. He said these moves could hinder the creation of a major market, because the world is watching Brazil.
He pointed to Manchester City, which came to dominate English football and became one of the top clubs in the world, and Paris Saint-Germain, the current UEFA Champions League champion, as examples of clubs built up through major financial investment.
Investors holding back
Monteiro de Castro said Brazil has still not managed to attract the biggest global investors. He said that, with the exception of Red Bull and City Group, the leading players in world football have not yet come to Brazil, adding that some wanted to invest but held back.
He said Brazil's consolidation as one of football's major markets depends on offering investors legal security and predictability. Once Brazil can demonstrate that security and predictability exist, he said, it will show itself to be an incomparable market given the characteristics of its football.
The interview marked the 149th edition of CNN Esportes S/A, presented by João Vitor Xavier.
