Liverpool’s clever £20m midfield signing: Opening door for second key transfer

In a shifting landscape within Brazil’s top-tier men’s football competition, the Campeonato Brasileiro Serie A, various investors, including those from the United States, began expressing interest. Crystal Palace co-owner John Textor acquired Botafogo, while 777 Partners, owners of Genoa, Standard Liege, and Red Star FC, who were previously in talks for an Everton takeover, purchased Vasco da Gama. Over the past year and a half, a wave of Brazilian club acquisitions has unfolded, including City Football Group’s recent purchase of Bahia in May.

The Brazilian domestic football market has garnered renewed attention due to evolving dynamics, offering significant growth potential. The nation’s passionate support for football, coupled with its population exceeding 215 million, creates a promising environment, especially amid the restructuring of the domestic game.

Several Brazilian clubs are altering their governance structures, creating opportunities for external investment. To cope with pandemic-related challenges, some clubs are transitioning from non-profit entities to corporate structures, adopting the ‘Sociedade Anônima’ (SA) model to reshape their finances, which has attracted potential investors.

However, Fenway Sports Group (FSG) ultimately refrained from entering the Brazilian market. While FSG aims for future expansion and diversification of their team portfolio, their focus is likely to concentrate on the North American market. Plans include targeting an NBA expansion franchise, notably in Las Vegas. Although Liverpool stands as a valuable asset within FSG’s £10bn-plus empire, the intricate risks associated with football, including promotion, relegation, competitive misses like the UEFA Champions League, along with the unpredictable transfer market and payroll dynamics, led FSG to step back from pursuing a multi-club platform.

The concept of a multi-club portfolio, popular among US investors in Europe, not only promises substantial revenue potential from multiple successful teams but also offers synergistic advantages. This involves positioning one club atop the structure to harness talent acquired through the network. Manchester City has effectively employed this strategy, successfully sending their young players to CFG-owned clubs like Bahia, Troyes, and Lommel SK.

Uncovering top talent before competitors in South America can prove highly lucrative. However, securing favorable deals in the current transfer market presents significant challenges. Clubs staunchly defend their players’ value, driving transfer fees and wage demands to unprecedented heights. The market’s inflation and the financial demands of continuous squad investment pose formidable hurdles.

Liverpool’s ongoing interest in Romeo Lavia persists, yet two rejected bids and Southampton’s £50m valuation for a player with limited Premier League experience have prompted the Reds to explore alternative options.

One potential alternative is Andre Trindade from Brazilian club Fluminense, a club that has seen several young talents move to European clubs. Andre, making his Brazil debut earlier this year and amassing over 100 appearances for Fluminense, has attracted attention from AC Milan and various top European clubs. Liverpool seems to have initiated talks with Fluminense, reportedly discussing a deal slightly above £20m. In the European market, this figure may not stretch as far, especially for a player of Andre’s age and profile.

The Brazilian league stands as one of the last global leagues offering value, with perceived risks in transitioning to European football tempering price inflation.

Portugal was a previously fertile market for value, as clubs like Benfica, Porto, and Sporting harnessed South American talent, reaping success. Yet, recent high-profile transfers, such as Chelsea’s £105m acquisition of Enzo Fernandez, indicate a potential end to Portugal’s bargain era.

Liverpool’s pursuit of value in the transfer market is both praised and criticized. Turning to Brazil for a future defensive midfield cornerstone echoes their 2007 acquisition of Lucas Leiva. Lucas, hailing from Gremio, spent a decade at Anfield before concluding his career at the Brazilian club.

Beyond a midfield replacement, Liverpool’s departures of Jordan Henderson and Fabinho to Saudi Arabia, coupled with defensive vulnerabilities in preseason, might compel Jurgen Klopp to seek a center-back signing. Whether Andre becomes the chosen solution remains uncertain. Dialogue with Lavia and Southampton continues, and Liverpool persists in their quest for market value. The recent addition of Alexis Mac Allister from Brighton & Hove Albion exemplifies Liverpool’s pursuit of undervalued assets, further demonstrated by their interest in the Brazilian market, potentially addressing multiple needs.