FIFA Drops Probe Into Brazil Striker Hulk's $26 Million Transfer Via Uruguay
FIFA "dropped an investigation" into the agent of Brazil striker Hulk after his $26M transfer to Portuguese side Porto in '08 went through a Uruguayan club for which he did not play, according to Alex Duff of BLOOMBERG. FIFA said there was "insufficient evidence" that Sao Paulo-based Juan Figer breached any of its regulations. FIFA "is looking into tax-avoiding transfers through Uruguayan teams, and on March 5 fined four Argentine clubs for routing trades through Montevideo-based Atletica Sud America for non-sporting reasons." It is "common for investors to own the transfer rights of players in South America." Ariel Reck, a lawyer in Buenos Aires who works on transfer deals, said that they "avoid paying capital gains tax if they route income offshore through Uruguay" (BLOOMBERG, 3/20).