Liverpool are interested in Fluminense star Andre Trindade, who is said to be relatively modestly priced compared to some midfielders in Europe
A few years ago, Fenway Sports Group expressed interest in getting involved in Brazilian football.
A change in the national landscape ahead of the Campeonate Brasileiro Serie A, Brazil’s top men’s soccer competition, had attracted interest from investors, including a number from the United States, Crystal Palace co-owner John Textor , acquiring Botafogo, and Genoa, Standard Liège and Red Star FC own 777 Partners, who were in talks to take over Everton earlier this year and bought Vasco da Gama.
Over the past 18 months or so, a number of Brazilian clubs have changed hands, including the recent takeover of Bahia by City Football Group, Manchester City’s parent company, in May.
The main reason for the renewed interest in the Brazilian domestic market is that it is changing and the country where the beautiful game becomes the national sport and enjoys great support offers a tremendous opportunity in a country of more of 215 million inhabitants, and investors estimate that it will come to growth, in particular with the transformation of the domestic game.
A number of Brazilian clubs are changing their governance, opening up opportunities for outside investment. As funds need to be found to deal with the impact of the pandemic, some clubs are now transitioning from non-profit to corporate in an effort to restructure their finances and form a “Sociedade Anônima” (SA). This alerted potential investors.
Ultimately, FSG played no role for the Brazilian market. Liverpool’s owners have plans for future growth and to expand their portfolio of teams, but those plans will likely be centered around the North American market, particularly with an NBA expansion franchise targeting Las Vegas.
While the Reds represent the most valuable asset in the FSG empire worth over £10bn, and the owners have no plans to sell the club given its projected upward trajectory in value terms, the risk involved in football through promotion , relegation and the lack of competitions such as the UEFA Champions League coupled with the Wild West transfer market and payroll mean they have moved away from playing for a multi-club platform.
Part of the appeal in a multi-club portfolio, something that has become a popular way of investing for US supporters in Europe, is not only the potential to generate significant revenue from having a successful set of clubs, but also the ability to create synergy through those clubs by seating a club on top of the structure. A club that could be the ultimate beneficiary of the talent acquired through the network. Man City have had great success sending their young players to CFG owned clubs such as Bahia, Troyes and Lommel SK.
Tracking down top talent before anyone else in South America can be a lucrative business. Getting a good deal on the transfer market is currently a big challenge. The clubs know how valuable their players are and are willing to play hard no matter who calls.
The willingness of some to spend big, such as Chelsea over the past 12 months, and the emergence of Saudi Arabia’s hugely wealthy Pro League as a potential lucrative new destination has seen transfer fees rise alongside wage demands. The market has exploded to almost grotesque proportions and it is becoming increasingly difficult to make the numbers work as you add top talent and grow a company financially to support the relentless need for team investment.
Liverpool remain interested in acquiring Romeo Lavia. But after two bids were rejected and the midfielder’s club Southampton offered £50m for a player with fewer than 30 Premier League appearances, the Reds are now exploring other options. One such option is Andre Trindade of Brazilian club Fluminense, who has seen some of his young talent sucked into European clubs in recent years. Andre, as it is known, earned his first cap for Brazil earlier this year and has more than 100 caps for the Tricolore to his credit.
The 22-year-old has been linked to AC Milan and is on the watch list of several top European clubs. But it is Liverpool who appear to have taken the first step in trying to secure a deal, with several reports suggesting they have opened talks with Fluminense over a deal worth just over £20m. That figure doesn’t go as far as it used to in the European market, especially for a player of Andre’s age and profile. The Brazilian league is perhaps one of the last major global leagues where value can still be found, although the perceived risk of jumping into European football may limit the price to some degree.
Portugal was a market where value creation was observed in previous years. Clubs like Benfica, Porto and Sporting have all been successful in signing talents from South America, including Darwin Nunez and Luis Diaz, and giving them a platform in a strong European league where participation in the Champions League and to the Europa League offers players the opportunity to compete. with the best the continent has to offer. But in recent years Portuguese clubs have realized they have some clout and sold Enzo Fernandez to Chelsea for £105m in January, although the midfielder was signed in June 2022 for around £8.5m. million pounds and just 17 games in the Primeira Liga. The era of bargain hunting at Portugal’s top tier may be over.
Liverpool are looking for values in the transfer market. For this they have been both praised and criticized. Looking to Brazil as a pivotal defensive midfield for years to come, they look back to 2007 and their £5m signing of another defensive protector, Lucas Leiva. Lucas would spend ten years at Anfield after joining from Gremio and ending his career at the same Brazilian club at the end of last season.
The Reds need more of that position following the departures of Jordan Henderson and Fabinho to Saudi Arabia, and defensive weaknesses displayed during pre-season could push Jurgen Klopp into the market for a centre-back. of a new punitive campaign where the club will fight on all fronts and will need options.
Whether Andre is the man remains to be seen, and with dialogue still open with Lavia and Southampton, that particular avenue is not closed just yet. But the Reds have not given up on their quest for market value again this summer, with the arrival of Alexis Mac Allister from Brighton & Hove Albion seen as a bargain given his true market value at the price of his release clause, which is been negotiated when he signed a new contract for the World Cup, which he would shine and win with Argentina. A dive into the Brazilian market can offer the possibility of a deal, as well as an opportunity to help other areas in need.
