Botafogo administrative crisis poses no risk to Brazil’s SAF – 22/09/2022

One of the primary soccer associations (SAF) in Brazil, Botafogo goes by means of turbulent occasions. As reported by ‘UOL Esporte’, John Textor’s administration is in arrears in fulfilling a number of monetary obligations contained within the settlement signed with the shareholders in March this yr. Despite the adverse instance in Glorioso, consultants see no dangers for the SAF within the nation.

“We want some calm within the evaluation. If there’s a drawback, it’s not with SAF, however with Botafogo SAF. And it’s important that it’s charged in the identical method because the associations, as a result of in soccer transparency is without doubt one of the key successes,” says economist Cesar Graffietti.

“It can be now needed to perceive the situations for beginning SAF, to know if the corporate had the buildings in place and dealing correctly when it began or if it has structured itself over time. But, once more, good communication by the administration would assist to perceive the state of affairs, with the membership talking as an establishment in an organized method and never by means of social networks. Without having the complete situation, it’s troublesome to choose, but it surely appears that there’s way more to structuring, in any respect ranges. Maybe there’s a lack of recommendation to take care of the fact of Brazilian soccer,” he assesses.

Lawyer Rafael Pandolfo, specialist in tax regulation, emphasizes that “transparency is key not just for the shareholders but in addition for Botafogo’s collectors”.

“This is a prerequisite for the traditional functioning of the SAF. It is subsequently essential that the membership has efficient mechanisms in place to guarantee compliance. But the issue, if it persists, could also be correct,” he provides.

According to Diego Garcia’s UOL column article, one of many clauses of the contract stipulates that SAF has the duty to present funds studies with quarterly outcomes to all members of the Board of Directors and the Fiscal Council, in writing, inside 15 days after the tip each quarter. The doc was additionally supposed to embody the corporate’s targets and outcomes, in addition to the professional soccer payroll, which has but to occur.

Also in accordance to the portal, one other level that isn’t being applied is updating and offering SAF balances by the fifteenth of each month. This contradicts what is alleged within the contract itself and the registered deed of incorporation, which offers for periodic success of those monetary obligations.

The massive drawback with the non-presentation of those monetary statements is that the SAF Fiscal Board in the end failed to analyze the numbers and accordingly the indebtedness.

The state of affairs sparked behind-the-scenes occasions on the membership a number of days in the past. In August, Fernando Pereira, one of many members of the Fiscal Council, resigned from his submit, internally demanding extra transparency.

In early September, it was the flip of Jorge Braga, Botafogo’s then CEO and one of many administrators concerned within the membership’s monetary restructuring course of, to step down. The businessman additionally filed a lawsuit (which is being performed in secret in a enterprise court docket in Rio de Janeiro) in opposition to SAF.

“I depart very happy and motivated by the work executed, wishing success to the investor John Textor, in addition to to Tyro and Danilo.” For the challenges forward, I’ll take with me my ideas and far of what I realized residing at Botafogo: nothing and no one will ever be larger than the membership. Everyone desires to win, however by no means prices. Work, coherence, ethics, pragmatism, honesty, transparency and professionalism must be pillars. Always,” Braga wrote on his social networks

To Law within the subjectJorge Braga’s protection, represented by lawyer Rodrigo Cota, detailed how the case goes.

“The EU court docket granted an injunction in Jorge’s favor because it was proven that SAF had failed to fulfill important obligations reminiscent of paying what was agreed with the CEO. Choosing which obligation to fulfill and never honoring contracts is in opposition to the professionalization challenge and places the emergence of the SAF regulation at risk,” he stated.


Regarding the content material of the article of September 4, journalist Diego García’s column in “UOL Esporte” despatched to Botafogo SAF all of the violated clauses and questioned the delays in monetary studies and budgets. SAF Botafogo’s response was “the phrases of the shareholder settlement are confidential and it’s solely up to the shareholders to tackle this problem”.

This Thursday (22) Lei em Campo tried once more to join with SAF Botafogo. The article will likely be up to date in case of a response.

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