Vasco is expected to complete the sale of 70% of its SAF to 777 Partners by early September. From there, the group will start investing to prepare the team to play the Brazilian Series A in 2023 — if they get access. In the long term, the bottom line is for the Rio club to reach a level similar to Palmeiras in terms of revenue.
There are two stages foreseen in the development of Vasco SAF. First, the club will receive BRL 630 million in investments from 777 Partners over a period of three years, with a stronger start to team formation for 2023. Then, there will be a cycle with this money until 2026 to complement the football budget.
The money will be used to keep Vasco’s football in the group of five biggest investments in Brazilian football. It is necessary since, in the last year, the Cruz-Maltino club obtained only about R$ 150 million in revenue. There will be growth for the next season with the rise to Serie A, with TV quotas, but the club still needs to develop in sponsorship and player sales management.
From 2027, the idea is for Vasco to manage enough revenue to fund its own football at a high level without the need for contributions. Now, for that, the goal is to reach a collection of around R$ 600 million a year.
The goal has Palmeiras as a paradigm. At Vasco, it is understood that there are similarities in the potential of the two clubs: both are from the colony, with fans of similar size, with a rival with a larger group of fans in the city, they went through a crisis that took them to the second division. Therefore, the alviverde team becomes a reference of the point that SAF wants to reach in the long term if commercial potential is fully exploited.
Last year, Palmeiras obtained almost R$ 1 billion in revenue. But, of that total, there were BRL 746 million referring to the 2021 season. But, of this total, let’s remember that it was BRL 75 million for the Libertadores title, which will not occur every year. The standard alviverde revenue level, therefore, ranges from R$600 million to R$700 million.
There are disadvantages, however, for the Vasco club in relation to alviverde. Palmeiras already has a stadium built for 40,000 people, in a prime area of São Paulo. Vasco will have to renovate São Januário, decide the size of the stadium and the location is less central. The Palmeiras fans distanced themselves from Vasco in recent years. In addition, the club alviverde is in the main economic market of the country, São Paulo.
But 777 Partners executives have already worked on key projects such as the Brazilian League. The scale gains of being an expanding global group of clubs can also be exploited. In addition, there is the intention to expand the gains with the digitization of the club, which Palmeiras is still in its infancy.