Brera Holdings PLC Announces International Expansion Strategy
January 30 2023 - 8:00AM
Following its Nasdaq IPO last Friday, Brera Holdings PLC (“Brera
Holdings” or the “Company” Nasdaq: BREA) today announced its
international strategy to simultaneously pursue expansion and
licensing of the Brera FC brand in Eastern Europe, Africa, and
South America, through the potential acquisition and, where
appropriate, renaming of football teams with the objective of
enhancing the players on these teams to place them on the
professional transfer market and obtain prizes related to
participation rights in UEFA..
Brera Holdings CEO Sergio Scalpelli commented, “We are currently
negotiating confidential deals for top division clubs in various
European countries, starting from North Macedonia, while exploring
opportunities primarily in Africa, but also in South America and
other non-European countries. The choice of countries
is based upon an in-depth analysis of the football, regulatory and
economic parameters that are key to our business model.”
There is a Sizeable Market for European Football
Competition Prizes. In the European countries in which
Brera Holdings intends to operate, the Company intends to pursue
the UEFA (Union of European Football Associations, the governing
body of European football and the umbrella organization for 55
national associations) competitions market with at least three
top-division teams. There are three UEFA competitions: The
Champions League, or the CL, the Europa League, or the EL, and the
Europa Conference League, or the Conference. A base participation
prize is awarded to each of the 32 clubs that are admitted to the
“group stage” of each UEFA competition.
For the 2021-2022 season, the base participation prize for each
club was €15.64 million for the CL, €3.63 million for the EL and
€2.94 million for the Conference. Each competition has different
rules for how a club may take one of the 32 places in the
competition’s group stage, but generally they are admitted either
automatically based on UEFA’s access criteria or gain admission
through qualifiers. For the CL, 26 clubs are automatically admitted
to the group stage based on UEFA’s criteria, and the remaining six
places are divided between clubs that qualify by being league
champions or by finishing second to fourth in their national
championship.
For the EL, 12 clubs are automatically admitted based on UEFA’s
criteria, 10 are admitted by transfer from the CL by losing either
of the CL’s play-off or third qualifying rounds, and 10 are winners
of the EL play-off round. For the Conference, 10 are admitted after
losing the EL play-off round, and 22 are admitted after winning the
Conference play-off round. Clubs from smaller European countries,
including the Eastern European countries where Brera Holdings is
exploring club acquisition opportunities, generally cannot gain
automatic admission to the CL or EL due to the effect of certain
coefficients that the UEFA uses to form the automatic access lists
for these competitions, but they can potentially reach the group
stage through the CL, EL or Conference qualifiers.
In addition, participants in certain competition qualifiers can
also receive participation prizes without reaching a competition’s
group stage, ranging from €250,000 in the case of elimination in
the first round of the Conference qualifiers, up to €5 million in
the event of elimination in the last round of the CL play-off
round. Commenting further, Brera Holdings CEO Scalpelli concluded,
“These prizes can generate high profit margins, especially for
those clubs with lower operating costs which we are targeting for
acquisition. In African, South American, or other non-European
markets in which we expect to franchise clubs, we instead intend to
develop a vast activity for scouting purposes.”
About Brera Holdings PLC
Brera Holdings PLC is a Nasdaq-listed (Stock
Ticker: BREA) Irish holding company focused on expanding social
impact football (American soccer) by developing a global portfolio
of emerging football clubs with increased opportunities to earn
tournament prizes, gain sponsorships, and provide other
professional football and related consulting services. The Company
seeks to build on the legacy and brand of Brera FC, the first
football club that was acquired by the Company. Brera FC, known as
“The Third Team of Milan,” is an amateur football association which
has been building an alternative football legacy since its founding
in 2000. The Company is focused on bottom-up value creation from
sports clubs and talent outside mainstream markets,
innovation-powered business growth, and socially-impactful
outcomes. See www.breraholdings.com.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains forward-looking
statements that are subject to various risks and uncertainties.
Such statements include statements regarding the Company’s ability
to grow its business and other statements that are not historical
facts, including statements which may be accompanied by the words
“intends,” “may,” “will,” “plans,” “expects,” “anticipates,”
“projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,”
“potential” or similar words. Actual results could differ
materially from those described in these forward-looking statements
due to certain factors, including without limitation, the Company’s
ability to continue as a going concern, the popularity and/or
competitive success of the Company’s acquired football teams, the
Company’s ability to attract players and staff for acquired clubs,
unsuccessful acquisitions or other strategic transactions, the
possibility of a decline in the popularity of football, the
Company’s ability to expand its fanbase, sponsors and commercial
partners, general economic conditions and other risk factors
detailed in the Company's filings with the United States Securities
and Exchange Commission. The forward-looking statements contained
in this press release are made as of the date of this press
release, and the Company does not undertake any responsibility to
update the forward-looking statements in this release, except in
accordance with applicable law.
CONTACT INFORMATION:
FOR MEDIA AND INVESTOR
RELATIONS
Outside Italy:
Daniel McClory, Executive Chairman
Brera Holdings PLC
dan@breraholdings.com
In Italy:
Sergio Scalpelli, CEO
Brera Holdings PLC
sergio@breraholdings.com
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