Corinthians is seeking a collective approach to settle its debts with various Brazilian football clubs, players, agents, suppliers, and other creditors.
Debt Restructuring Proposal
On Wednesday, the club’s board presented a comprehensive debt restructuring plan to the Brazilian Football Confederation’s National Dispute Resolution Chamber (CNRD), where numerous claims against the club are being processed.
According to Corinthians, the proposal “covers ongoing cases within the chamber and includes a payment plan spread over several years.” The CNRD, affiliated with the CBF, has yet to approve the plan.
Centralized Execution Regime
In addition, Corinthians has filed for a Centralized Execution Regime in the courts. This move, endorsed by the President of the São Paulo Court of Justice, aims to consolidate all civil claims against the club into one process, facilitating a collective negotiation with creditors for installment payments.
If this strategy is successful, creditors will form a “queue” to receive payments from Corinthians, who will allocate a portion of their monthly revenues to cover these debts. The club has issued a statement reaffirming its “commitment to pay all creditors and to restructure its legal, financial, and administrative affairs, including budget reorganization and expenditure control.”
Legal and Financial Measures
This year alone, over R$50 million of Corinthians’ funds have been frozen due to legal actions. The Centralized Execution Regime would prevent further such seizures.
The club has enlisted the help of a specialized law firm, along with club advisors and Romeu Tuma Jr., the chamber’s president, to navigate this initiative. Although the previous administration under President Duilio Monteiro Alves considered similar measures, they ultimately decided against it.
Current Financial Situation
With the assistance of Alvarez & Marsal consultants, the current administration led by Augusto Melo has been exploring financial recovery strategies in recent months. The budget for 2025 is expected to be revealed soon.
Currently, Corinthians’ debt exceeds R$2 billion.
