Mubadala Capital has been recommended as the preferred investor for a new football league being established in Brazil, according to a person familiar with the matter, as Middle Eastern money continues to target the world’s favourite sport.
The asset management arm of Abu Dhabi’s Mubadala Investment Co. was chosen by the finance committee of the so-called Libra project at a meeting on Monday, the person said, asking not to be identified discussing confidential information.
Representatives for football clubs making up the league have voted to enter exclusive negotiations with Mubadala Capital, which had been competing with other investment groups.
Mubadala has a history of sports investment
A spokesperson for Mubadala Capital declined to comment, while a representative for Libra couldn’t immediately be reached for comment.
Inspired by the English Premier League, the world’s richest football division, Libra is seeking to take advantage of new rules aimed at attracting more foreign investment in Brazilian football.
While the new league already has the support of some of the South American nation’s biggest clubs, including Corinthians, Flamengo and Palmeiras, it has faced opposition from some smaller teams worried that its model for income distribution will favour the biggest names.
Investors from the Middle East have shown themselves among the most keen to try and capitalise on the revenue potential of football’s increasingly global reach.
Some of the sport’s best-known teams, including Manchester City FC in England and Paris Saint-Germain FC in France, are backed by money from Gulf states.
Last year, Saudi Arabia’s Public Investment Fund took over Newcastle United FC, another of the UK’s historic clubs.
The group has a history of investing in sports and media assets, including US pay-television provider Yes Network and SX Global, an Australian company that promotes motorcycle racing’s FIM Supercross World Championship.
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