Overhaul forecast in Brazil after FIFA bans TPO
By Andrew Downie
SAO PAULO (Reuters) - FIFA's decision to ban third party ownership (TPO) of football players could herald a revolution in Brazil, where the majority of players are not wholly owned by their clubs, investors and clubs said on Friday.
Brazilian football is bankrupt with the top 20 teams owing a collective 5.1 billion Reais ($3 billion).
The clubs survive by selling parts of player contracts to third parties who hope to recoup their money when the players are sold.
Those investors believe there are ways round the ban, but warned it was not workable in the short term and would require a complete overhaul of Brazilian football.
"Eighty percent of the players in Brazil have a percentage of their contract owned by a third party so, if (FIFA) ends this, the teams won't have the money to pay salaries," Roberto Moreno, executive director of DIS Sports, one of the country's biggest funds, told Reuters.
"It can't work in the short term. One after another, teams will stop paying salaries and football will be over."
FIFA president Sepp Blatter said FIFA would ban the practice worldwide on Friday, but promised clubs they will have between six and eight transfer windows – three to four years – to adapt to the new rules.
Moreno said companies like DIS could avoid the ban by purchasing a club. Investors could then buy players for their team and loan them to bigger clubs who would give them a shop window. Continued...