São Paulo turn to €33.7m of English money to refinance club

Sao Paulo fans

By Samindra Kunti
October 19 – São Paulo may have found English money to abate their current debt crisis with a €33.7 million cash injection into the club looking likely, though the identity of the English group has not been named.

Sao Paulo have been in turmoil recently with the club’s president Carlos Miguel Aidar forced to resign after allegations of corruption, while coach Juan Osorio left to head up the Mexican national team.

The institutional crisis at São Paulo Football Club has overshadowed the club’s mixed results this season. São Paulo are currently in sixth position with 47 points in the Brazilian league, notwithstanding a squad including heavyweight players Rogerio Ceni, Paulo Henrique Ganso, Alexandre Pato and Luis Fabiano. They trail runaway league leaders and city rivals Corinthians by 20 points after 31 match days.

Aidar left the club following accusations by his vice president Ataide Gil Guerreiro that Aidar diverted money from contract negotiations with players away from official channels. Guerreiro also claimed that the contract with sportswear manufacturer Under Armour benefitted a company of Cinira Maturana, Aidar’s girlfriend, for up to €1.35 million.

As Aidar resigned under pressure, it left Juan Osorio in a precarious position as head coach of the club with no backers in the boardroom. Osorio decided the time was right to head north and take up the challenge of coaching Mexico.

São Paulo have a debt of about €36 million with local banks. The club spend €607,000 on interest and about €1.28 million in amortisation a month. The unnamed investor from England is apparently willing to back the club with an injection of €33.7 million, according to the group Força São Paulo.

“We have already informed São Paulo CEO Paulo Ricardo and it only depends on a ‘yes’ from the club for it to become real,” said São Paulo director of institutional relations Dorival Decoussau. “We would pay the English group much smaller interests, thereby ensuring saving up to €5.6 million a year for São Paulo.”

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