With $ 173 million in debt: Ronaldo’s challenge as the new owner of Cruzeiro

The scorer’s nose Ronaldo He was not only on the soccer fields. The Brazilian extended his capacity for success to his life as a retired footballer and his last goal is to buy the cruise, a club where he made his professional debut in 1992, but this time the challenge is beyond a championship.

Cruzeiro were relegated to Serie B in Brazil in 2019 and the financial crisis has not allowed them to return to Brasileirao. Last year he had to dismiss players due to “the need for austerity” and in 2021 the team went on strike in October due to back wages.

Given this, a strong investment was needed and this came from Ronaldo. The already owner of Real Valladolid of Spain bought the club for 400 million reais, about 70 million dollars. This Saturday the former footballer and the president of Cruzeiro Sérgio Santos Rodrigues announced the agreement, without giving further details.

“I am happy to have completed this operation. I really want to give Cruzeiro back where he deserves. We have a lot of work ahead of us ”, were the first words of ROnaldo as owner of the team.

Thus, Ronaldo adds a new business to his portfolio. Owner of Valladolid, he also has an image management company: 9ine Sports and Entertainment, and he owned 25% of Fort Lauderdale Strikers, an American club that disappeared in 2016. In addition, he has business in the world of wines in Spain.

The interest in buying a club in 2018 was known. He spoke with the MLS to acquire a franchise, but it did not materialize because he needed 70 million euros at the time. He looked to the Premier League and then Portugal and Spain, where he was able to buy 51% of Real Valladolid shares for 30 million euros.

The blue challenge

Thus began his journey that now they made him return to Brazil. Cruzeiro needs to get out of its economic crisis to think about returning to sporting glory. In the last tournament of Serie B he finished in 14th place. Last year he saved from relegation in the last days.

The challenge of returning to Brasileirao is marked in the plan. Coach Vanderlei Luxembourg has already renewed his contract for all of 2022 with an extension for 2023 in case he reaches First Division. The blues are already working towards the Minas Gerais (state) Championship and the Brazil Cup.

At the beginning of the month it was approved that the club become a private company and last Friday the members approved that the shares may be in the hands of investors. Until before that meeting, only 49% could be sold, now the figure has risen to 90%. This opened the doors for Ronaldo.

The first task for the ‘Phenomenon’ will be to cover the debt of 1 million reais (more than 173.6 million dollars) with which the year 2020 ended, which now would reach 175 million, according to the portal “Globoesporte”. However, this debt can be paid in 60% in six years and the remainder in another four. However, 20% of the monthly payments that are allocated have to come from the monthly income of the club. In addition, 50% of the annual income will also go to these debts. In other words, Cruzeiro today is obliged to start generating its own resources, beyond the injection given by the new owner.

In addition, recently a court ruled that the Cruzeiro pay 500 thousand reais (more than 800 thousand dollars) to Regis Half, a player who was in 2020, and who sued him for wages between May and December, in addition to all benefits and fines. for not paying you during that year.