The project has the salvation of taking Cruzeiro out of the biggest sports and financial crisis in its history. Two devices were vetoed
President Jair Bolsonaro sanctioned, on Friday (6), the bill that offers conditions for football clubs to become companies, being able to receive financial resources from individuals, legal entities and investment funds.
Last Tuesday (3), the deliberative council of Cruzeiro approved the creation of the Anonymous Society of Football (SAF) that will manage the professional football of the club as soon as it finds an investor. The transformation is seen as the alternative to take Fox out of the biggest financial and sports crisis in its history.
According to publicity material from the General Secretariat of the Presidency, only provisions of the bill that implied a waiver of revenue by the Union, for violating the Fiscal Responsibility Law and the Budget Guidelines Law, were vetoed.
The approved bill is authored by the president of the Senate, Rodrigo Pacheco (DEM-MG). The text was approved in the Senate on May 10th and, a little over a month later, in the Chamber of Deputies.
The new law allows for the creation of the Football Association – currently, most teams are non-profit associations. The entities will now be able to receive resources to promote and develop activities related to football.
The club-company will also aim to train professional athletes and obtain revenue from the negotiation of the players’ sporting rights, in addition to allowing the economic exploitation of assets, including real estate.
“The approved text will allow, first, the club or original legal entity to pay the obligations to its creditors through judicial or extrajudicial reorganization”, says a note released by the General Secretariat.
Taxation was one of the top concerns of top hats in relation to the project. As non-profit associations, associations allocate an average of 8% of their gross revenue to tax payments, while other companies collect up to 35% of their revenue.
Regarding debts, the proposal allows the club to settle the situation with creditors through judicial reorganization, creditors’ contest and centralization of executions (individual or collective negotiation). In these cases, priority will be given to labor debts, the elderly, pregnant women, work accidents and agreements.
“In another measure, it will be possible to opt for the execution of assets to pay creditors according to a centralized execution regime. Another suitable way will be collective bargaining, in which a payment plan can be defined in a different way”, adds the text released by the government.
The sports company that will be formed will be able to participate in championships. The text indicates that the team may transfer to the Sociedade Anônima do Futebol assets such as name, brand, rights to participate in professional competitions, as well as employment contracts for athletes and the use of image.
The text also allows for the separation of the football department from the original club or legal entity or even on the initiative of a natural or legal person or investment fund.
On the other hand, it prohibits the controlling shareholder of a club-company from participating in more than one Sociedade Anônima do Futebol, in order to avoid manipulation of results. In addition, it requires the creation of a board of directors and a fiscal council.
The law also institutes the Educational and Social Development Program to develop measures in favor of education through football in partnership with a public educational institution.
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