Canuck Oranje Posted December 19, 2007 Share Posted December 19, 2007 For those of you that have an interest in the business side of soccer, the situation of Caio Alves Cesar dos Santos (Caio) could get interesting over the January transfer period. We've heard of the situation surrounding Tevez and Mascherano where their contracts at Corinthians were actually held by Joorabchian and MSI and loaned to the club. Third party contracts and loans are not new. The idea of teams using third party wealthy businessmen to hold onto to star players is also not new. The case of Caio will likely become more public over the January transfer window. There has been some speculation that teams like Ajax and Panathinaikos will buy him. To see a little of this 21 year old, check out this video: The interesting thing about Caio's contract is that his contract is actually held by Barueri (a Serie B team) and loaned to Palmeiras (a large Serie A club). This is verified by CBF records. The concept of wealthy lower level teams loaning up is becoming an interesting phenomenon to watch. Not so much because it is new, but because teams like Pao de Acucar EC and Barueri have greater financial resources than most Serie A clubs in Brazil. In the case of Caio, the negotiation could prove to be frustrating for big European clubs who are used to seeing Brazilian clubs ultimately cave and a deal getting done. The frustration in this case would be because Barueri is the only club in Brazil that doesn't need to sell players to make a profit. They also have a contract with Caio that goes to the end of 2009. Having said that, Palmeiras is also in a peculiar position in that their best and most valuable player is not theirs and they do not control where he will play next year. Having said that, Barueri is probably also fine with letting him play with Palmeiras one more year. In the end Caio will be in Europe and probably arrive in January and likely no later than the summer of 2008. But the price will likely be more than the buying team thought they would need to pay. The talk is around 12-14 million euros at present. So far from what I've read, most European media members that have covered this developing story believe their respective clubs are negotiating with Palmeiras. But now you know more than they do. Link to comment Share on other sites More sharing options...
jpg75 Posted December 19, 2007 Share Posted December 19, 2007 That is pretty unusual! But good for them, the best decisions and negotiations are done from a position of power, and Barueri are sure to get what's coming to them...though the more i think about it, i'm sure they won't be in Serie B for too much longer, especially if they're revamping the whole team as you were saying in another thread. That 12-14M Euros could pay for one hell of a makeover! Link to comment Share on other sites More sharing options...
Canuck Oranje Posted December 19, 2007 Author Share Posted December 19, 2007 A couple of unusual scenarios could develop. One is a loan to a lower table big-5 European league team if the right deal does not materialize. The other would be to take him back for the Paulista state championship where they play the big boys anyway and that begins in January. The loan deal with Palmeiras legally ends Dec 30/2007. Incidentally, word is that Barueri are currently in negotiations with two former Brazilian national team members for the 2008 season. They have already signed Amaral (played a few seasons in Italy's Serie A), a goalkeeper with Brazilian Serie A experience, another goalkeeper that was a former Brazil U-20 member (stuck for a few years behind Rogerio Ceni at Sao Paulo), Avalos (former Santos defender) along with others with at least solid Serie B credentials. They also have a couple of 16 year-olds signed to long term professional contracts (one who was the SP state scoring champion at U-17 this year). It looks like they may give it a run next season. Contrast this with this past season where they more or less sifted through a group of lower level free agents and kept a few of the players that got them promoted to Serie B. On "loaning up", Pao de Acucar EC is beginning to do this a lot. They currently have five players on loan with Gremio and three with Sao Paulo FC. However, their first team just turned pro this year and is still way down the levels. In terms of money, they have lots but the team itself doesn't have much revenue yet so it will depend on how much Mr Diniz is prepared to drop to determine if the club needs to sell any of these players. All these players are under the age of 21. Link to comment Share on other sites More sharing options...
Canuck Oranje Posted December 20, 2007 Author Share Posted December 20, 2007 While a Brazilian team loaning a player to a European team is not common, I discovered on further research that Barueri has done that once already. Everton Ramos da Silva was loaned by Barueri (not Gremio as given in the Dutch league section of the Globe and Mail website) to Heracles Almelo for the 06/07 season when Rob Friend was there too. That loan was converted to a four year contract in the summer of this year. Given that Heracles Almelo is not a strong side and given the relatively low 100,000 euro amount quoted as a transfer fee at Transfermarkt, I wouldn't be surprised if there is a continuing interest in the player. Link to comment Share on other sites More sharing options...
Canuck Oranje Posted January 15, 2008 Author Share Posted January 15, 2008 To close the loop on this story, it was announced today that Caio was sold to Eintract Frankfurt. A deal between Palmeiras and Gremio Barueri had just been completed where the Palmeiras purchased a 50% interest in the player from Barueri. The latest version of the deal has Caio going to Eintract Frankfurt for six million euros with the selling clubs retaining an interest in a future transaction. This is a curious transaction because Palmeiras would not have been able to pull this off by itself. First, Palmeiras didn't have cashflow as mentioned earlier. Grupo Traffic comes in with somewhere between R$30-R$40 million (approximately $17-22 million) to invest in Palmeiras. Palmeiras buys a 50% interest in Caio from Barueri. The CBF just finalizes that transaction and the deal with Eintract Frankfurt is announced. Who is Grupo Traffic? Well for starters, they hold the International marketing rights to the Copa America and the Copa Libertadores. They now have investments in EC Sao Bento, Miami FC, Ituano, and Palmeiras. They also have various media interests (TV, radio, production,etc.). They also have a well-financed professional academy (Desportivo Brasil) which just happens to be based in Barueri but I am not sure of the relationship between them and Gremio Barueri. My guess is that their involvement is more than a coincidence. Did I mention that Palmeiras is currently using Barueri's new stadium (2nd phase is still to be completed) while its stadium is under renovation? Link to comment Share on other sites More sharing options...
jpg75 Posted January 16, 2008 Share Posted January 16, 2008 Thanks for the update...what's happening with the Sao Paolo U20 tourny these days? Link to comment Share on other sites More sharing options...
Canuck Oranje Posted January 16, 2008 Author Share Posted January 16, 2008 I'll give an update after today's games. quote:Originally posted by jpg75 Thanks for the update...what's happening with the Sao Paolo U20 tourny these days? Link to comment Share on other sites More sharing options...
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