Figueirense’s Case and the Financial Fair Play in Brazil

The concern with the financial health of football clubs is a widespread matter, which has been boosted by the UEFA Financial Fair Play Regulations. In Brazil, although there are still no regulations specifically related to it (these are about to be implemented as we will refer in this article), there are some articles in specific competition regulations, which provide for sanctions for clubs that do not comply with their financial obligations towards their players.

Within this context, in 2019, there was an interesting case involving a club of the State of Santa Catarina, Figueirense Futebol Clube (Figueirense). This case had developments in the areas of competition and sports justice and further, for the Public Prosecutors for Labor Matters.

In the context of financial difficulties, Figueirense signed, in 2017, a contract with Elephant, a venture capital firm. Under the contract, Elephant would invest in and manage the club’s activities for a period of 20 years, with the possibility of renewal for another 15 years.

Although the club’s immediate debts were initially resolved, as early as 2018, information leaked regarding delayed salary payments. Since 2018, the club’s financial problems have grown and according to the press: the delay in payment, for several months of salaries, other employer duties and amounts related to the use of image rights, led some players to...

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Figueirense’s Case and the Financial Fair Play in Brazil

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