CVM alerts for clubs that want to go to the stock exchange.
Fan passion and internet rumors can make the experience less rational than the market preaches.
This Monday, the CVM published a document with guidelines for football clubs that became SAFs and are considering going public on the stock exchange. In addition to pointing out which are the paths to an IPO or to issue a debt bond, the sheriff of the financial market was careful to include two alerts that are closely linked to the world of sports: the passion of the fan and the rumor that generally circulates about clubs and players on the internet, factors that can make the experience of investing in your favorite team more exciting than ideal.
Considering that many fans may want to become shareholders of the clubs — and end up making decisions that are beyond the rationale expected of investors —, the CVM instructed clubs to "dedicate special attention to the description of risk factors for offers and issuers", resorting to a "clear, concise, objective and balanced language in the emphasis on positive and negative information."
In the document, the CVM said that alerts dedicated to reducing the emotional bias of the supporters are recommended and that the investment decision should not be guided by non-rational aspects related to the feelings existing between the supporters and the clubs.
On the second point of concern, the CVM stated that it cannot be ignored either that football activity is subject, in Brazil and in other countries, to intense monitoring by journalists, digital influencers, fans and other agents who generate, on a daily basis, a significant amount of information, news, reports and rumors, with varied purposes.
The CVM admitted that it does not expect the SAF and its administrators to react to any news or rumors, especially those produced in a clearly sporting context, but stressed that it will nevertheless demand that situations that may arise be evaluated and generate the effects provided for in the rule that establishes the criteria for disclosing material facts.
Although the CVM issued the warnings, it is expected that clubs and investors (fans or not) will still take some time to adapt. "This debate will be accentuated during the periods for hiring players, when rumors run rampant, and when the expectations of buying or selling a great player can impact the price of shares", says lawyer Eduardo Carlezzo, from Carlezzo Advogados, a firm specializing in sports law and that advises clubs that went public in Chile: Colo-Colo, Universidad Católica and the U. de Chile.
But if Brazilian clubs really start looking for the stock exchange, the movement will probably be led by the biggest ones. "It's not clear if any club will seek an IPO, but it could be an interesting option for big clubs that are well-organized, that don't want to give up control and that want to capitalize on their operations by selling a minority stake" he says.
