Very close to an agreement to end the debt owed by the Arena to Caixa Econômica Federal, Corinthians projects a period of five years to finalize all pending financial issues equivalent to titles similar to court orders, which will be purchased by the club at a discount.
The officialization of the new agreement depends on bureaucratic processes. The club intends to pay off its debt with Caixa by purchasing debts that the bank would have to pay to third parties in the long term. The debt will be owed to a company that owns the securities (click and understand in detail).
The deadline projection is made by Wesley Melo, Timão’s financial director:
– My debt will be residual. Does it mean paying off the Arena’s debt? These R$700 million with Caixa will be paid off. Then I will pay a residual value in five or eight years, which is still being discussed, to this transferor of the title. It will be something very smooth. I will no longer have to pay interest, which is very high. Everyone benefits from this operation – he said, live on the website “Meu Timão”.
– What we are talking about is paying the amount directly to this company in five or eight years, probably five, and only with correction of the IGP-M (General Price Index – Market), without interest. And in this projection, we can pay relatively easily. We will, for example, have box office revenue to pay – he projected.
Wesley Melo, who at Caixa’s request was unable to detail the new values and the exact name of the security, made a point of making it clear that the bank will also benefit from the solution:
– Whoever gives up any amount to be received is the transferor of the title, not Caixa or the Government. The company holding (the securities) is a private company, it has partners. There are confidentiality clauses.
On Sunday, the president of Caixa visited the Neo Química Arena. In a statement, Corinthians stated that, “with the proposal to settle the debt with Caixa resolved and in progress with the appropriate control bodies, the institutional visit served the president to visit our house in situ, reinforcing the partnership between the parties” .
Duilio reveals Corinthians’ current revenue and debt values
Roughly speaking, Timão will exchange a huge debt owed by Arena to Caixa for other debts, with the difference that the purchase of these bonds similar to court orders is made at a large discount (which can reach up to 90%).
In other words, the club continues to have a debt related to the stadium, but with a lower value.
Furthermore, Corinthians’ new proposal includes the values for the Arena’s naming rights. Payments from Hypera Pharma would go directly to Caixa’s account, without even going through the club.
In 2020, Corinthians sold the naming rights to its stadium to Hypera Pharma for R$300 million. The contract, valid until 2040, has a base collection of R$15 million per season, but is adjusted annually by the IGP-M. The current value of the agreement is R$17.8 million per year.
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