International Transfer Ban and Insolvency Proceedings involving Brazilian Clubs: the Case of the Centralised Claims Execution System under the Brazilian Football Corporations Law

International Transfer Ban and Insolvency Proceedings involving Brazilian Clubs: the Case of the Centralised Claims Execution System under the Brazilian Football Corporations Law

This article examines the question of whether the centralised claims execution system provided for under Brazil’s recent Football Corporations Law could prevent the FIFA Football Tribunal from determining sanctions on Brazilian clubs that adopt the system and, in particular, the transfer ban provided for in Articles 12bis and 24 of the FIFA Regulations on the Status and Transfer of Players (RSTP).

The[1] question[2] is an important one, given the crossroads that the Brazilian football industry has reached, with various clubs migrating from their former organisational structure as associations to a business corporation model, together with the arrival of new national and international investors in a market that until recently presented considerable obstacles to long-term investment.

The background to Law 14.193 – The Football Corporations Law

For decades, the potential of the Brazilian football market to attract investment has been affected by a conjunction of three main factors: (a) the fact that the clubs were formed as associations, (b) the relative disadvantage of the tax rules applicable to business companies when compared to associations, and (c) the risk to investors presented by the enormous...

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