Five Years ago Brazilian Club Teams Couldn't Even Think of Doing This

[Canuck Oranje]

It is a sign of the times that TV and sponsorship revenues are climbing so much in revenues that clubs are getting into the player transfer business on the buyer side. Apparently the offer of 40 million pounds (about 45 euros) from Corinthians for Tevez was accepted.

http://www.express.co.uk/posts/view/259561/Manchester-City-let-Carlos-Tevez-go-for-40m-

In another deal, Santos has purchased the contract of Ibson from Spartak Moscow for 4 million euros.

In addition, D-Mid, Denilson, is expected to join Sao Paulo FC from Arsenal and Defender, Henrique, is expected to join Palmeiras. Both are on loan.

While it expected that the best young talent will eventually still end up in Europe, it is no longer the case that Europe is the best option in all cases.

[McGuire]

You're gonna see fewer & fewer Brazilians going to Europe in the future, economy's strong in Brazil & it's benefitting soccer there, not to mention new stadiums

[CanadianSoccerFan]

With their massive 190 million population the revenue potential for television rights is enormous.

[Canuck Oranje]

A further story from the Financial Times

http://www.ft.com/cms/s/0/2f831222-b07c-11e0-a5a7-00144feab49a.html#axzz1SUV40f6E

[youllneverwalkalone]

How much did Corinthians get on the sell-on to Man City? I recall they stood to get 80%. That transfer was 47m. Aren't they just back where they started?

[Canuck Oranje]

It's not that simple but first of all, it was nowhere near 47 mil when he went to West Ham. In fact, I believe it was closer to 14 million Euros

Second, MSI and Joorabchian held the bulk of the Tevez contract at the time of his playing with Corinthians. And many of the UK press are being misleading when they say that MSI and Joorabchian owned Corinthians. Corinthians is a member-owned club and MSI was a financial partner at the time and I doubt the club got much of the proceeds from the sale to Europe nor would they have paid much to have Tevez play for them outside of the salary. Again MSI would have paid the transfer bringing Tevez to Brazil. When the partnership contract was broken, I doubt Joorabchian had much interest in giving anything to the club. As for the sell on, I doubt they didn't get anything from that either.

Corinthians doesn't need MSI this time. But there are no doubt some sponsorship dollars involved.

The other point is that the Brazilian Real is worth a lot more than it was in 2006; but, even with that improvement, the transfer fee when converted into Brazilian Reais, is still significantly higher but much better than it would have been under a 2006 exchange rate.

How much did Corinthians get on the sell-on to Man City? I recall they stood to get 80%. That transfer was 47m. Aren't they just back where they started?

[Canuck Oranje]

It should be recognized that the Tevez transfer is not yet finalized and could fall apart. but the original point was that Brazilian clubs wouldn't even be talking transfer fees as buyers a short time ago. Also, it needs to be noted that the current transfer market changes are partly due to smaller & mid-size clubs in Europe being less willing to pay and opening the door to Brazilian clubs.

My view on the Tevez transfer is that Corinthians could make better use of its cash (or credit). Recent rumours in Brazil have both Sao Paulo FC and Corinthians in the market for Felipe Melo of Juventus and that will also involve a transfer fee.

It's not that simple but first of all, it was nowhere near 47 mil when he went to West Ham. In fact, I believe it was closer to 14 million Euros

Second, MSI and Joorabchian held the bulk of the Tevez contract at the time of his playing with Corinthians. And many of the UK press are being misleading when they say that MSI and Joorabchian owned Corinthians. Corinthians is a member-owned club and MSI was a financial partner at the time and I doubt the club got much of the proceeds from the sale to Europe nor would they have paid much to have Tevez play for them outside of the salary. Again MSI would have paid the transfer bringing Tevez to Brazil. When the partnership contract was broken, I doubt Joorabchian had much interest in giving anything to the club. As for the sell on, I doubt they didn't get anything from that either.

Corinthians doesn't need MSI this time. But there are no doubt some sponsorship dollars involved.

The other point is that the Brazilian Real is worth a lot more than it was in 2006; but, even with that improvement, the transfer fee when converted into Brazilian Reais, is still significantly higher but much better than it would have been under a 2006 exchange rate.

[Canuck Oranje]

http://www.independent.co.uk/sport/football/news-and-comment/brazils-economic-boom-attracts-big-names-back-2315925.html

[amacpher]

It should be recognized that the Tevez transfer is not yet finalized and could fall apart. but the original point was that Brazilian clubs wouldn't even be talking transfer fees as buyers a short time ago.

Not that I disagree with your overall point, but six years ago Corinthians splashed out some £14mn for the same player (Tevez) which was a huge amount of money at that time (more than Chelsea paid for Cech or Robben, albeit £10mn less than what they paid for Drogba and half of what Man Utd paid for Rooney).

But factoring-in the inflation that has occurred in the transfer market, I would say £14 million 2004 money is roughly equivalent to £35-40 mn in 2011 money because a young Rooney/Drogba would probably be worth £55-65 mn today.

[Canuck Oranje]

Correction: MSI paid that amount and he played with Corinthians. It was Joorabchian and MSI who paid that amount through the financial partnership with Corinthians.

Palmeiras and Desportivo Brasil had a similar partnership a few years later.

[youllneverwalkalone]

It's not that simple but first of all, it was nowhere near 47 mil when he went to West Ham. In fact, I believe it was closer to 14 million Euros

Yes, but that's not what I'm talking about. When South American clubs sell players to Europe they retain, as a matter of course, a sell-on clause. My understanding is that Man United never paid a penny for Tevez in the form of transfer fee; therefore, Corinthians should have received a slice of that 47m from Man City. My understanding was that it was 80%. This was the only way a club like West Ham could attract a player of Tevez's quality in the first place.

[Canuck Oranje]

Corinthians never truly owned the Tevez rights so I don't see how they would have received a sell on. West Ham got into trouble about third party ownership because MSI and Joorabchian still owned the contract and had simply pulled the player from Corinthians and placed him with West Ham along with Mascherano. These kinds of third party partnerships are legal in Brazil but not in other countries.

The arrangement that MSI had with Corinthians would have been similar to a loan.

[youllneverwalkalone]

Corinthians never truly owned the Tevez rights so I don't see how they would have received a sell on.

So it all went to the agent? That seems fishy.

[Canuck Oranje]

Well, Joorabchian is Tevez's agent now but it wasn't clear if that was MSI's role in 2005-2006.

There are several organizations set up as clubs in Brazil that have player rights trading as there primary business. some actually have professional clubs and full fledged academies (and very good ones). Some that might be familiar are Desportivo Brasil (has a relationship with Miami FC), and Bonsucesso Futebol Clube (actually held the contract of Maicon Santos before his move to MLS). Another name that seems to keep coming up in Brazil these days is a supposed Uruguayan club called Clube Deportivo Maldonado.

The bottom line is that the club for whom the player plays is not always who receives the transfer fee.

Re: the potential Tevez move this time, there is no doubt that there is likely some third party money being put on the table but it is more likely sponsorship money. The player rights trading groups are not likely to be involved because they are more into the buy-low-sell-high market. With Tevez wanting to go back to SA and probably approaching is peak as a player, it would be difficult to see how a third party could profit from a sale down the road.