Benfica Stars Fund was a
football
Football is a family of team sports that involve, to varying degrees, kick (football), kicking a football (ball), ball to score a goal (sports), goal. Unqualified, football (word), the word ''football'' generally means the form of football t ...
investment fund
An investment fund is a way of investment, investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage. These ad ...
belonging to Portuguese club
Benfica's
SAD, a public limited sports company responsible for the financial management of the club's professional football team.
The fund was set up by
ESAF – Espírito Santo Fundos de Investimento Mobiliário SA on 30 September 2009. At first the fund had 8,000,000 unit each with €5 each.
History
Benfica Stars Fund was the fourth investment fund of Portuguese football, after
First Portuguese Football Players Fund First Portuguese Football Players Fund was an investment fund dedicated for football. Unlike Serie A and Premier League, third-party ownership is allowed in Portugal. Clubs sold part of the economic rights of their current players to the fund for ca ...
s in the 2000s. Moreover,
Benfica was the last of the "
Big Three" clubs in Portugal to set-up an investment fund. The club sold part of the economic rights of 12 players to the fund, in exchange for cash. If Benfica sold the players, Benfica would give back a percentage of transfer fees received to the fund. In October 2009, S.L. Benfica
SAD invested €6 million to the fund, accounted for 15% of total units. The club then sold more players to the fund, made the subscription, in turn became an injection of asset instead of cash.
After the sale of
David Luiz
David Luiz Moreira Marinho (born 22 April 1987) is a Brazilian professional Association football, footballer who plays as a Defender (association football), defender for Campeonato Brasileiro Série A club Fortaleza Esporte Clube, Fortaleza. H ...
in January and
Fábio Coentrão
Fábio Alexandre da Silva Coentrão (; born 11 March 1988) is a Portuguese former professional footballer. Mainly a left-back, he also operated as a winger and occasionally as a defensive midfielder.
After starting playing professionally with ...
in summer 2011, the fund acquired five players from Benfica instead of keeping cash for €6.135 million.
As an asset, the rights were amortized proportionally according to the length of contract (between players and club). Moreover, the fund also bore the admission fee related to player transaction, tax arose, agent fee and FIFA solidarity mechanism (5% of transfer fee distributed to youth clubs) proportionality to the ownership ratio. Thus, to make the fund profitable, the club had to sell the player above the fee that the fund acquired. The club had to ask the fund if the club had to sell the player below the reference price of the fund.
On 31 July 2014, Benfica SAD (which owned 15%) completed the acquisition of Benfica Stars Fund by spending around €28.9 million for 85% (decreased from €34 million in 2009), purchasing the remaining economic rights of nine players (with a valuation of €5,079,437), as well as €21,704,300 deposits and future receivable from bonus clauses.
Investments
See also
*
Third-party ownership in association football
Third-Party Ownership (TPO) in association football is the ownership of a player's economic rights by third-party sources. The third-party—which can be an agent such as a football agent, an agency, such as a sports-management agency, a company, ...
References
External links
Benfica Stars Fund reportsat
CMVM
The Portuguese Securities Market Commission, also known by its initials as "CMVM", is the Portugal, Portuguese financial regulator that supervises and regulates securities and other financial instruments and activities of all those who operate with ...
{{S.L. Benfica
Association football organizations
S.L. Benfica