Ricardo Guimarães Keeps Betting On Sports And It’s Paying Off

Ricardo Guimarães, the well-known mining entrepreneur and bank executive, has turned a love of sports into a cash cow, according to an article published by R7.com. Guimarães has been a football lover since childhood and he has also been a banking prodigy since birth according to his father Flavio and grandfather Antonio. Antonio was the first Guimarães to get involved in the banking business. Antonio was a successful mining entrepreneur at the start of the 20th century and he decided to put some of the money he made to good use. He founded the Land Credit Bank of Minas Gerais in 1930, and 68 years later Ricardo became president of the bank.

When Ricardo was named president, the bank had already gone through several acquisitions. The bank’s name was changed to BMG Bank several years before Ricardo became president. BMG Bank was still a relatively unknown bank in Brazil in 1998 since most of the bank’s business was done in the state of Minas Gerais. But it didn’t take long for Ricardo to change the bank’s image. BMG Bank went from a one-state bank to a well-known bank in all states, thanks to Ricardo Guimarães and his plan to sponsor football clubs.

The directors of BMG Bank didn’t realize what Ricardo had in mind when he first presented his proposal to advertise during football matches. Advertising during soccer matches had never been done the way Guimarães wanted to do it. Guimarães decided to sponsor the local Atlético Mineiro football club first. The deal was the players would wear the three letter orange logo on their jerseys during game days, and BMG Bank would invest in the club by buying equipment, uniforms and other necessary sports paraphernalia. The deal was a win for the bank and the football club. That’s when BMG Bank decided to expand their sponsorship role in football, according to an article published by Esporte.ig.com.br.

According to the Esporte.ig.com.br article, BMG Bank now sponsors eight soccer clubs in Brazil and also sponsors tennis and volleyball players. The bank is now the leader in the payroll loan business thanks to football club sponsorships. No one is sure how much money BMG Bank invests each year in sponsorships, but according to a post by Maquinadoesporte.uol.com.br, the bank invests millions of Reals every year.

But the return on that investment is exponentially greater than the investment, according to Guimarães. BMG Bank’s profits are enough to have more than 700 agents around the country helping the bank process payroll loans. Payroll loans, according to several articles that have been written by R7.com and other Brazilian magazines and newspapers are the biggest profit generator for BMG bank. Payroll loans and sports sponsorships have made BMG Bank and Guimarães popular in Brazil and that popularity continues to grow after every soccer match.