A Brazilian soccer club will receive major debt relief from a Sao Paulo-based private equity firm.
Treecorp Partners has agreed to acquire 90% of Brasileiro Série A club Coritiba in a deal valued at $260 million.
About $54 million of Treecorp’s payment will go toward paying off the club’s debts, according to SportsPro. Another $100 million will be used to upgrade Coritiba’s Couto Pereira Stadium, while $20 million will be spent on renovating the club’s training facility.
Treecorp has also allocated $90 million to support day-to-day team operations.
Coritiba was founded in 1909, making it the oldest soccer club in the state of Paraná. The team currently ranks 19th of 20 teams in Brazil’s top-tier league and won its only Série A championship in 1985.
Money is being pumped into Brazil’s top existing league as it faces potential competition from Liga Forte Futebol, a breakaway project backed by U.S. investors that has reportedly garnered support from some Serie A and Serie B clubs. The league would be controlled by clubs instead of Brazil’s national federation.
Another Brazilian Takeover
Treecorp’s acquisition comes just a few days after City Football Group completed its takeover of Brazilian club Esporte Clube Bahia.
Bahia is the 13th soccer club owned by CFG, which paid a reported $200 million for 90% of the club. Bahia is CFG’s second-largest investment after its majority stake in Manchester City.
