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Brazilian Federal Government In Talks Of Solution, Punishment For Club Debts

Brazilian President Dilma Rousseff "should" sign the Medida Provisória, a bill for provisional law for reform of Brasileiro sides struggling with debt, later this week after government officials scheduled to meet Tuesday "adjust" its terms, according to FOLHA DE SÃO PAULO. Among other points, the MP "has a way to propose downgrading of the clubs indebted to the goverment or with late salary payments to players." The clubs that "joined" the Tax Recovery Program (Refis) and "did not honor salary payments or accumulated new debt" can be "downgraded" from participating in championships. The total debt of Brasileiro sides affiliated with the Brazilian Football Federation (CBF) is R$4B ($1.2B), with R$1.1B ($337M) from Atlético-MG, Flamengo, Botafogo, Corinthians and Fluminense (FOLHA DE SÃO PAULO, 3/17). In Brasília, Amanda Martimon reported despite the recent fiscal adjustments, the Brazilian federal government "did not retreat ... from the proposal to renegotiate" debts accumulated by Brasileiro sides. However, senators have made a counterpoint proposal under the name "Bancada da Bola," which tries to "trump the item that penalizes [club] leaders for wreckless management." Brazilian Sports Ministry Secretary of Football Rogério Hamam noted that both parties, the clubs and the federal government, are "nearing a consensus" (SUPER ESPORTES, 3/17).

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