Luís Castro exit puts pressure on Grêmio finances, explained | OneFootball

The dismissal of Luís Castro created an estimated obligation of R$ 30 million for Grêmio, related to the early termination of his contract. The Portuguese coach is demanding full payment upfront, as provided for in the agreement, and is not accepting installment payments.

RTI Esporte Agency has learned that Grêmio’s board is trying to find a solution that reduces the immediate impact of the obligation on the club’s cash flow. So far, however, no agreement has been reached to change the condition required by the coach.

The situation returned to the spotlight after the goalless draw with Palmeiras. Asked about the figures reported in recent days, president Odorico Roman challenged one of the amounts made public, but did not say which number he believed was incorrect.

The figures are still disputed

Since Luís Castro’s departure, reporting has pointed to an obligation close to R$ 30 million. At the same time, a figure of around R$ 35 million began to be reported by different media outlets.

Odorico Roman did not confirm either amount and also did not publicly reveal the exact total. Therefore, his statement cannot be interpreted as a specific denial of either the roughly R$ 30 million or the R$ 35 million mentioned in the news coverage.

The Portuguese coach’s contract was valid until December 2027. Since the termination occurred by the club’s decision, the obligation takes into account the amounts set out in the contract through the end of the agreed period.

Payment terms hold up negotiations

With the amount still not publicly confirmed, the payment method has become the main sticking point in the negotiations. Grêmio is seeking an alternative to reduce the immediate impact on its cash flow, while Luís Castro insists on receiving the full amount upfront.

The difference between the two positions is making it difficult to conclude an agreement. For the club, spreading the payment over time would allow it to better manage cash flow. For the coach, however, the condition set out in the contract must be maintained.

Club must balance cash flow and settlement

The pending issue comes amid Grêmio’s planning for the rest of the season. Any immediate payment would represent a significant outflow of funds and would require the board to find a financial solution to absorb the commitment.

While the parties have not reached an understanding, the club must manage the issue off the pitch without losing sight of the team’s preparation. Luís Castro was dismissed on September 13, after a 2–1 defeat to Vasco at the Arena.

Renato Portaluppi made his debut in this fifth spell in charge in the goalless draw with Palmeiras. While the new coach begins his work, the club’s leadership still needs to conclude negotiations with Luís Castro and resolve the financial issue surrounding his early departure.

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