Corinthians get more time to sort Union deal after missed payments | OneFootball

Corinthians managed to avoid, at least for now, the risk of the agreement signed with the federal government to renegotiate its tax debts being terminated. Even after failing to pay the four most recent installments of the settlement, the club was able to negotiate an extension with the Office of the Attorney General of the National Treasury (PGFN) and keeps the agreement active.

The situation comes amid a delicate financial scenario for the club, which has liabilities totaling more than R$ 2.8 billion. The information about the negotiation with the PGFN was reported by Meu Timão.

Photo: Rodrigo Coca/Ag. Corinthians

In September, Corinthians had already received a notification from the Attorney General’s Office because of the nonpayment of the installments due in June, July, and August. The contract states that the “failure to pay three consecutive or alternating installments” may trigger the termination of the settlement.

Faced with the risk of losing the benefits obtained in the renegotiation, the club’s board asked for more time to settle the four pending payments. The club argued that it is working to reorganize its financial obligations and cited, among the factors involved, the talks being held with Caixa Econômica Federal regarding the debt related to Neo Química Arena.

Talks with Caixa gained momentum in September, when Corinthians presented a proposal for the bank to take over the stadium’s naming rights in exchange for debt forgiveness. The club’s debt with the financial institution is currently estimated at approximately R$ 630 million.

As negotiations move forward, Corinthians and Caixa understood that it would be necessary to temporarily suspend the quarterly payments related to the Arena. The measure spared the club from having to pay an estimated amount between R$ 25 million and R$ 30 million in September.

Four installments are pending

Sispar records, the system used by the PGFN for payment plans and negotiations, show that Corinthians did not pay the installments for June, July, and August, in addition to the September installment, which was due on the 30th.

In the case of social security debts, each installment amounts to R$ 2,001,982.48. The installments related to non-social-security debts are worth R$ 4,829,616.18.

Added together, the four payments that remain outstanding bring Corinthians’ debt with the federal government to approximately R$ 27.3 million, not including charges applied to the overdue amounts.

Keeping the agreement in force is considered important because a possible termination would cause the original debt to once again be considered in full, deducting only the amounts already paid by the club. As a result, judicial and extrajudicial collection measures would also resume.

In addition, a breakdown of the settlement would prevent Corinthians from entering into a new negotiation with the PGFN for two years. The restriction would apply even to any attempt to renegotiate other debts.

Renegotiation reduced billion-real debt

The agreement with the federal government was approved in February and gave Corinthians a 46.6% reduction on a debt estimated at R$ 1.2 billion. The amount included approximately R$ 1 billion in non-social-security debts, R$ 200 million in social security obligations, and R$ 15 million related to the FGTS.

At the time the settlement was formalized, the club projected a reduction of approximately R$ 200 million in its liabilities.

Talks to reach the agreement began in 2024, but the main progress took place throughout 2025. The negotiation was later concluded, with the expectation that around R$ 679 million would be paid by Corinthians through different arrangements.

The established schedule provides for 60 installments for social security debts and 120 installments for non-social-security debts. For the FGTS, 60 installments were set, along with a 30% discount. Credits related to social contributions, meanwhile, would be paid in a lump sum, with a 70% reduction.

As part of the conditions for the settlement, Corinthians had to provide guarantees to the federal government. Among them are amounts the club is set to receive through Timemania.

Parque São Jorge, Corinthians’ social headquarters, was also used as collateral for the operation. The property was valued at R$ 602.2 million under the terms of the agreement.

Renegotiation sparked questions within the club

The tax settlement also became the target of internal discussions at Corinthians during the review of the 2025 accounts. Board members questioned how the effects of the renegotiation were reflected in the financial statements, since the agreement was formalized in 2026, but its impacts were booked in the previous fiscal year.

The Advisory Council (Cori) raised concerns related to the report prepared by Parker Russell, the firm responsible for the independent audit of the club’s financial statements.

The negotiation with the federal government was also linked to an impeachment request against president Osmar Stabile. Those behind the initiative argued that, in April, Corinthians used Parque São Jorge as collateral for the operation without following, according to them, the procedures required by the club’s bylaws.

Among the rules cited is the need for approval by a minimum quorum and qualified majority of board members for certain transactions involving Corinthians’ assets.

This article was translated into English by Artificial Intelligence. You can read the original version in 🇧🇷 here.