Brazilian football eyes up Gulf money as corporate ownership becomes possible

On Saturday afternoon, two of Brazil’s most successful football clubs will face off in the showcase final of the Copa Libertadores — South America’s premier club competition. São Paulo-based Palmeiras, the reigning champions, will take on Rio de Janeiro’s high-flying Flamengo, the most supported club in the entire country. The match, to be held in the legendary Estadio Centenario in Montevideo, will be broadcast live to countries around the world.

The Copa Libertadores has a special place in the hearts of football fans around the world, but the final is set to have a few new spectators this year: foreign investors who see Brazilian football as an enticing business opportunity.

While sponsors from outside Brazil and South America have long been involved in the country’s national sport — particularly during the early 2010s — the potential for direct investment in Brazilian clubs has gained momentum thanks to declarations made by Economy Minister Paulo Guedes in recent days.

Speaking at an event in Brasília, Mr. Guedes noted that Arab investors have expressed their interest to buy — or at least invest in — two Brazilian clubs. This was reportedly gleaned from the federal government’s recent trip to the Persian Gulf in November.

“[Arab investors] said: ‘Calm down, we’re going to buy two teams, we’re looking into it and we’re going to buy two teams,” claimed Mr. Guedes. “They’re going to invest in roads, oil wells, and even in football clubs.”

“They bought Manchester United, they bought Cristiano Ronaldo,” said Mr. Guedes, perhaps mixing up the popular Manchester club with Newcastle United, recently bought by a Saudi Arabia-led...