Brazilian Chamber approves bill on renegotiating football club debts.
The Chamber of Deputies plenary approved, this Tuesday (7), Provisional Measure 671/15, which links the installment of debts of sports clubs with the Union to more transparent management practices, such as an independent fiscal council and a limit on the re-election of directors. The matter, whose validity ends on the 17th, still needs to be voted on by the Senate.
The new rules also involve sports governing bodies (federations, confederations and leagues), both in terms of payment plans and transparent management.
While the original bill stipulated that the club would be relegated to a lower division or banned from participating in the next championship as penalties for non-compliance with transparent management rules, the text by the rapporteur, Deputy Otavio Leite (PSDB-RJ), modifies these penalties.
He maintained only the ban on registering player signings as a penalty that can be applied by federations and the confederation against a club that violates management rules.
The ban on participating in the championship was removed from the text, but relegation was maintained for clubs that fail to prove tax compliance regarding federal taxes, the Guarantee Fund for Length of Service (FGTS), and player payments, including image rights contracts. However, the text does not specify the frequency with which this proof must be provided.
An amendment signed by Congressman Jovair Arantes (PTB-GO), based on a text proposed by several party leaders, made adjustments to the rapporteur's text, such as maintaining the Selic rate to correct the installment payments of club debts, ending the requirement for a zero deficit starting in 2021, and increasing the amount of gross revenue that can be used to pay soccer players (from 70% to 80%).
kick off
The rapporteur for the bill, Otavio Leite, recalled that, exactly 12 months after Brazil's defeat to Germany in the 2014 World Cup, the text approved by the Chamber "is not the solution for Brazilian football, but the beginning of a solution."
According to him, the provisional measure covers not only the major clubs but also those in other divisions. "If the stipulated rules are observed, this will lead to a positive outlook for clubs to have a planned and responsible future. The text prohibits the anticipation of revenue, for example, which hinders the subsequent management of a club," he stated.
According to Congressman Jovair Arantes, who signed the approved amendment, the text "moves in the direction of a more responsible football with the quality that every Brazilian wants to have."
New lotteries
One of the new features in the Provisional Measure report is the creation of two lotteries to raise funds for the clubs, in addition to the already existing Timemania. Prizes from all three lotteries will be exempt from income tax, and their operation may be granted to private companies.
The Lotex instant lottery (scratch-off) will benefit soccer teams that join and agree to the use of their brands and symbols. Clubs, including those from other sports, may act as lottery agents.
Of the total revenue, 65% will go towards prizes; 10% to school sports initiation projects of the Ministry of Sports; 2,7% to football clubs; 18,3% to operating and maintenance expenses; 3% to the National Penitentiary Fund (Funpen); and 1% to Social Security.
The fixed-odds lottery will be a kind of betting pool on the results of any sport. Of the total collected, 70% will be allocated to prizes; 16% to operating and administrative expenses; 7% to sports initiation projects of the Ministry of Sports; 3% for clubs to invest in women's football; 3% to Funpen (National Penitentiary Fund) and 1% to Social Security.
This lottery could be administered by either Caixa Econômica Federal or by private companies through a concession agreement. (Agência Câmara)
