Prediction markets in everything, Brazilian soccer player edition

It could be a fantasy football draft in any office in America –
only these trades are real. This is the office of Traffic, a Brazilian
company leading a new, and controversial, wave of investment in
Brazilian soccer.

Armed with 20 million reals of their own
money (about $12 million) and another 20 million reals they hope to get
from investors, Traffic is buying up contracts of young soccer players
all over Brazil. They then lend the players to teams, who pay the
players a salary and also allow them to showcase their talents. If they
are recruited by a big European team, Traffic and its partners reap the
largest share of the transfer fee. (The player, as usual, gets any
signing bonus, and an often hefty salary.)

“Instead of investing
in the stock market or real estate,” Julio Mariz, Traffic’s president,
said, “these people are investing in buying the economic rights to
football players."

Here is the full story and thanks to Hunter Amor Williams for the pointer; here is Hunter’s beer blog.


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