Corinthians evaluates possible renewal with Memphis as a way out for fair play

The CBF's new model limits clubs' short-term debt in relation to ordinary revenues. An agreement with Memphis would allow Corinthians to reduce and lengthen the pending issue.

CLUB AWAITS COUNTERPROPOSAL

The report found that Corinthians' internal assessment changes if the renewal package is reduced from approximately R$110 million to R$85 million. The second value is close to the R$77 million that the club currently estimates it owes to the attacker, after interest, fines and corrections.

Timão expects the player's staff to submit, this Monday, a new renewal proposal within the terms discussed at the end of last week. The club expects a reduction of around R$25 million in the request, disregarding cost assistance and marketing funds.

The financial department informed President Osmar Stabile that a possible execution of the debt by Memphis would increase Corinthians' short-term obligations and affect the proportion established by the financial fair play system adopted by the CBF. Although the model is still being implemented, Timão's financial department understands that there would already be an impact on the club's process of adapting to the guidelines.

CORINTHIANS WANTS TO REDUCE VALUE

The R$110 million contract rejected by Corinthians last week is still considered by Stabile to be incompatible with the club's current payment capacity, according to UOL's findings. The package brought together salaries, image rights, marketing funds, allowances, prizes and the renegotiation of the previous debt, with the removal of interest and fines.

Corinthians' cash flow is compromised. The club has delayed three of the last four CLT salaries, still has debts for image rights and awards with the squad and is facing three transfer bans.

A reduction in the package to R$85 million, however, would put the negotiation in a different condition, according to UOL's findings. Corinthians would keep Memphis in the squad and, at the same time, renegotiate a debt that they do not have the cash to pay off immediately.

In the internal assessment, the difference between the renegotiation of the debt with Memphis and the renewal of the contract would be less than R$10 million. The amount corresponds to the difference between the R$ 77 million owed by Corinthians to the player, an amount admitted internally, and the package of approximately R$ 85 million discussed to include the attacker's stay and the payment of the pending payment in installments.

With the agreement, the debt would fall to R$42 million, as there would be no interest charges and other financial adjustments.

DEBT WOULD REACH NEXT MANAGEMENT

President Osmar Stabile internally expressed concern about the possibility of approving a contract that would leave obligations to the next administration. Therefore, the director wishes to submit a possible new contract with Memphis Depay to the Guidance Council (Cori).

Sources linked to Parque São Jorge, on the other hand, argue that part of the debt will be transferred to the next management regardless of the attacker's stay.

Corinthians would have to negotiate new deadlines even without the renewal, as they do not have the cash to cover the pending issue in cash. Furthermore, the club has already anticipated a large part of its revenue, and the institution's financial history directly impacts its ability to seek credit in the market.

Thus, the internal discussion began to consider the conditions under which the debt would reach the next years. With the renewal, Corinthians could reduce and lengthen liabilities, in addition to keeping Memphis in the squad. Without the new bond, you would have to seek a specific renegotiation to avoid debt enforcement.

FINANCIAL FAIR PLAY

One of the basic pending issues monitored by CBF's financial fair play determines that short-term net debt cannot exceed 45% of the club's ordinary net revenue.

According to sources linked to Corinthians, this percentage is close to being reached in the current scenario, mainly because the revenue considered in the calculation does not include the amounts raised from the sale of assets, which is precisely one of the main resources expected by the club during the mid-year transfer window to balance the books.

The account considers recurring revenues, such as broadcasting rights and sponsorships. In this way, an eventual execution of the debt by Memphis would increase the liabilities payable in the short term and put pressure on this proportion. An agreement, on the other hand, would allow you to fix the debt at a lower amount and spread the payments over a longer period.

Financial manager André Lavieri has constantly explained this scenario to president Osmar Stabile, according to UOL. Other people in the financial area also presented these arguments to the Corinthians president, who initially seemed convinced, but later signaled a retreat from the idea.

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