Portuguese giants Benfica have made headlines by becoming the latest football club to attract US investment. Lenore Sports Partners (LSP) has finalized the acquisition of a 5.24% stake in the prestigious Lisbon-based team.
Jean-Marc Chapus, co-founder of the private equity firm Crescent Capital, leads the investor group that marks the first American investment in the Portuguese league. As stated by Blackbridge Sports LLC, the firm that facilitated the connection between LSP and Benfica’s holding company, these new minority owners will help strengthen Benfica’s international foothold, particularly in the essential US market.
Benfica is one of the most celebrated clubs in Portuguese football, boasting a record 38 domestic league titles and two European Cups from the early 1960s. The club has recently earned a reputation for developing young talents like Joao Felix, Enzo Fernandez, and Darwin Nunez, all of whom were sold for substantial sums.
In a statement, Alexander Jarvis of Blackbridge highlighted that this transaction presented several challenges, calling it a particularly intricate deal.
“Benfica has proven to be a global leader in player development, generating over €1.5 billion ($1.7 billion) in transfer sales since 2000, yet remains undervalued. We proudly facilitated this partnership with such a prestigious institution and are optimistic about the growth prospects this collaboration presents.”
This investment of approximately $20.8 million to $23.1 million (equivalent to €18 million to €20 million) includes shares auctioned on the Portuguese stock market.
What this means for Benfica
The timing of this investment is crucial for Benfica, especially after a near-miss against Sporting in the last season. Striving to qualify for the financially rewarding Champions League league phase, Benfica’s capabilities will be tested now more than ever. Last season’s advance to the round of 16 yielded around $80 million, vital funds that could bolster the club further.
Additionally, Benfica must adjust to an increasingly competitive environment for South American talent. The Estadio da Luz has historically served as a crucial transition point for players from Argentina and Brazil moving toward larger European clubs. With the influx of significant money into the sport, Benfica faces stiff competition from clubs like Real Madrid and Premier League teams who are likewise targeting South American prospects.
For instance, Real Madrid has recently invested heavily in setting up deals for players such as Franco Mastantuono and Endrick from South America. To remain ahead, Benfica must find new strategies and diversify its recruitment, now increasingly including players from outside traditional markets such as Turkey, Germany, and the Netherlands.
