Authorities Freeze Assets Of Brasileiro Side Botafogo After Debts Surpass $307M
Brasileiro side Botafogo "is in crisis, unable to pay its players" after debts totaling more than 700M reais ($307M) led authorities "to freeze its accounts," according to Tariq Panja of BLOOMBERG. The Rio de Janeiro-based team "hasn’t paid some players in more than three months." Accounts showed the team had tax debt of 127M reais last season, and former players "are owed millions in pension contributions." Team spokesperson Bernardo Peirao said, "We have 100 percent of our resources blocked. We don’t have money to pay the players and the employees." Botafogo’s case "is an extreme example of the financial mismanagement that has blighted" football in Brazil for decades. The Sports Ministry said that the country’s professional teams owe more than 4B reais ($1.7B) in taxes. Amir Somoggi, who advises several of Brazil's top clubs on business strategy, said, "If Botafogo was a corporate firm it would be bust" (BLOOMBERG, 8/6).