Stadium Capital Financing Group, a majority-owned entity of Morgan Stanley Principal Investments, has set up an exclusive, strategic partnership with Lusoarenas, a Portuguese arena development company, to work on projects in Brazil and Portugal.
The companies aim to employ Stadium Capital's proprietary funding method called ‘Equity Seat Right’ [ESR] which guarantees buyers long-term access to premium tickets.
The funding method, the companies say, could enable sporting organisations to raise significant capital without incurring debt or diluting ownership or governing control.
"Development companies like Lusoarenas are excited to be able to raise capital without tapping public debt markets,” said Lou Weisbach, CEO of Stadium Capital. “This is a tremendous opportunity, given the improving economies in Brazil and Portugal.”
Lusoarenas S.A expects a surge in arena development in the two countries - especially if Brazil is confirmed as host of the 2014 FIFA World Cup.
