Flamengo, Palmeiras, Santos, São Paulo, Grêmio to share Cade payment | OneFootball

Trial Held This Wednesday (11) Brings News

The Libra and FFU groups, current commercial blocs of Brazilian football clubs, reached an agreement with the Administrative Council for Economic Defense (Cade) in a trial held this Wednesday (11) in Brasília. The decision impacts Flamengo.

Last year, a preliminary injunction from Cade had prohibited Libra and FFU from accepting new clubs until the end of the agency’s investigation into possible irregularities. However, after Wednesday’s (11) decision, both were cleared. But this decision came at a cost.

Cade demanded a payment of R$ 559,000, and five teams will have to pay: Flamengo, Palmeiras, Grêmio, Santos, and São Paulo. This quintet is from Libra, which, according to the Council, acknowledged the group’s infraction. Furthermore, these clubs fit the parameters that require notification to Cade and have remained in the association for more than two years.

WHAT CAUSED THE INVESTIGATION?

Last year, Cade understood that the organizations “constitute a contractual joint venture structure, whose submission to prior control by this authority was mandatory before its implementation, characterizing the practice of gun jumping.” In addition, Atlético-MG was mentioned, as the club intended to switch from Libra to FFU.

According to Cade, these moves cannot happen without the Council being notified. Furthermore, Cade requires that “at least one of the groups involved in the operation has recorded gross annual revenue in Brazil, in the year prior to the operation, equal to or greater than R$ 750 million.” Flamengo and Palmeiras fit these cases in 2022.

Additionally: “at least one other group involved in the operation has recorded gross annual revenue in Brazil, in the year prior to the operation, equal to or greater than R$ 75 million.” In 2022, Santos, São Paulo, and Grêmio also fit this case, also in Libra.

WHAT DID THE OTHER GROUP SAY?

The other group, FFU, celebrated Libra’s agreement with Cade and believes it is a step forward for all clubs in the country. Under the agreement, FFU also commits to notifying CADE of the operation within 60 days, for a merit analysis that the association believes is clearly pro-competitive.

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