FC Porto has agreed to sell its insurance brokerage for approximately €10 million in a deal aimed at strengthening the Portuguese team’s financial sustainability.

In a statement released to the market, the FC Porto SAD (the club’s management company) said that the sale of Porto Seguro should generate a profit of around €9 million due to its 95% stake in the brokerage. The club owns the remaining 5%.

Porto Seguro will be sold to the brokerage firm MDS, with whom FC Porto has established a long-term commercial partnership that includes the future contracting of the club’s insurance, as well as the development of insurance offers for FC Porto members, fans, employees, and partners.

The proceeds from this “affinity” activity will be shared between FC Porto and MDS, according to the statement.

“It was a process that took three to four months and ended with the selection of MDS as our main partner. This operation will represent an important financial boost that will be relevant to strengthening our financial sustainability and the net worth of FC Porto,” said José Pedro Pereira da Costa, CFO of FC Porto.

FC Porto continues restructuring

This deal comes after FC Porto won the Portuguese League for the 31st time with two rounds still to go in the season.

Despite the success on the field, the blue-and-white team continues to face serious financial challenges. André Villas-Boas, who was elected president of FC Porto two years ago, has been carrying out a profound restructuring to alleviate the financial pressure on the Portuguese club.

Recently, FC Porto signed a 25-year agreement with the Spanish company Ithaka Infra for the commercial operation of the Estádio do Dragão, in a deal that could yield up to €100 million.

Within the scope of this agreement, “Porto Stadco” was created, in which Ithaka acquired a 30% stake and which exploits the economic rights of the stadium, namely through ticketing, corporate hospitality, naming rights, museum and events.