The so-called ‘SAF Law’ is boosting Brazilian football, but there is still a lot to go forward
Amidst the new scenario that the so-called ‘SAF Law’ is boosting Brazilian football, there is still a long way to go. And one of these central themes is the difference in sales prices of Brazilian clubs compared to several European clubs.
Why does it happen? This is an important topic, which has been addressed in the Betway, bet sports siteand we will talk about it briefly in this text.
The main point, without a doubt, is the size of the brands and their exposure. Note that branding in this sense has nothing to do with historical achievements. That’s why marketing, knowing how to explore the brand and sell Brazilian football nationally and especially internationally counts a lot.
The chaotic scenario of several Brazilian clubs does not help the cause
First, we must consider the situation Brazilian clubs that are becoming SAFs find themselves in.
It is not news that clubs like Cruzeiro, Botafogo and Vasco, recent examples of adoption of this model in Brazil, have been in financial crisis for some years. All of them are accumulating huge debts and have seen the migration to SAF as a chance to breathe.
Given this scenario, one can imagine that foreign investors will try to pay less money. After all, they will already have to bear part of the clubs’ debts and their current complicated contexts, whether it’s outdated structure or even being in a lower division.
Despite this, it is a fact that several Brazilian football clubs, including the aforementioned, have a lot of market value. Whether because of the sports tradition or even the size of their respective fans. However, seeing the numbers of the article from Betway, published on its blog of predictions in the Brasileirãothey are still shy.
Given the desperation of clubs in crisis, it is conceivable that any deal that is eventually not so good in monetary terms is seen as something very advantageous. But we know that this is not always the case.
It is a fact that Brazilian clubs are valuable, but there is still a long way to go. A brand like PSG, Manchester City or Chelsea being better known around the world than Flamengo, Palmeiras, Santos or Corinthians makes little sense if we analyze the achievements, revealed players and history in football.
But all the sense if we analyze the following.
European leagues are much more valued
It is undeniable that the Real is a very undervalued currency, especially when compared to the US Dollar and the Euro. This, in itself, makes foreign investors see Brazilian clubs as great investments paying a ‘bargain price’.
A plausible reason for the considerably lower amounts is the differences in the level of these leagues.
The Brazilian Championship certainly has enormous potential. This does not mean that this potential is being reached. Not even close, to be honest. The lack of a club league, for example, greatly weakens our football organization as a whole. And, consequently, causes clubs to be weakened.
On top of that, leagues in Europe, for example the Premier League and even the Primeira Liga in Portugal, are more established. And they are championships that attract all the eyes of football fans around the world. Thus, the intrinsic value of these alloys becomes more evident. When La Liga, Spain’s national championship, started selling itself as “The League of Stars” and this was seen on the pitch, interest exploded across the world.
Obviously, as we said, the Brazilian Championship has a market potential as great or even greater than some leagues in Europe. However, until things become more organized around here, all that potential is dissipated.
And so clubs end up being almost forced to sell themselves for prices that are extremely lower than they are really worth. When the Campeonato Brasileiro is sold as “The League where the Stars are Created”, things will change.
Conclusion
It is a fact that Brazilian clubs are being sold for amounts incompatible with their relevance and market value. For example, we see clubs of the size of Cruzeiro, Botafogo and Vasco traded for proportionately lower values than European cases such as Crystal Palace, from England, and Genoa, from Italy.
Unfortunately, this is a scenario that could still be repeated in future SAFs. And this is largely due to the lack of structural organization in Brazilian football and the idea of a brand, image exposure and how to reach new markets is still in its initial steps here.
Therefore, this is a debate that needs to come to light, even so that future deals are treated with more skepticism when the figures involved are not consistent with the market value of these clubs in our football.
