Corinthians under fire as shady transfer sparks new crisis | OneFootball

Corinthians’ off-field troubles have deepened following a report by Brazil’s financial monitoring authority, COAF, raising fresh questions about the club’s recent financial transactions involving its break with former sponsor Pixbet. According to a confidential document, Corinthians may have used funds from a company suspected of obscuring sources of money-flow to pay off a costly contractual penalty, intensifying scrutiny of the club’s fiscal practices amid ongoing governance upheaval.

The COAF report, obtained by Globo, centers on the company OTSAFE, based in Curitiba, which is alleged to have sent R$ 20 million to Corinthians. This transfer covered the penalty associated with the early termination of the Pixbet sponsorship agreement, which was triggered when Corinthians signed a new deal with betting partner VaideBet in January. Notably, Pixbet’s contract required exclusivity and demanded compensation when their branding was removed from club uniforms.

COAF highlighted irregularities around OTSAFE’s business activities, noting that the firm, operating out of three modest offices in the city, was moving financial sums "well beyond the company’s earnings," raising suspicions of possible resource concealment or financial misconduct. Further investigation found ties between OTSAFE and ZenetPay, a payment processor involved with managing betting website operations—including VaideBet, the club’s current shirt sponsor.

Financial documents show Corinthians received the R$ 20 million from OTSAFE on 8 January 2024 in four separate pix transactions, with amounts ranging from R$ 600,000 to nearly R$ 10 million each. The need for such funds arose when Pixbet, citing the breach of contract, demanded both a penalty fee and the return of part of an advance paid to the club for the agreement, which originally extended until 2025.

Corinthians’ settlement with Pixbet, reached in February, committed the club to pay a total of R$ 40.1 million plus R$ 4 million in legal fees. However, according to Pixbet, only the initial payment and six installments have been made, with the club missing a scheduled payment in mid-September. The missed deadline led Pixbet to initiate legal proceedings to recover the balance owed.

Amid these financial tensions, the club is under additional political pressure, following a vote to suspend president Augusto Melo in relation to broader sponsorship and compliance controversies. The findings from COAF add another layer of complexity to Corinthians’ ongoing efforts to navigate fiscal and reputational challenges, as legal and administrative proceedings continue to unfold.

Source: Globo