SAF: the new reality of Brazilian football

Would you like to cheer for a club in Brazil that doesn’t care about winning titles, but to give profit to shareholders, like Arsenal?

Well, you can prepare yourself… The new reality of Brazilian football, which has been practiced abroad for a long time, is SAF: Sociedade Anônima do Futebol (“the Football Corporation”).

The first to implement SAF in Brazil was Cruzeiro (from Minas Gerais), on December 17th, 2021; and Botafogo (from Rio de Janeiro) has already started to provide legal procedures in the same direction.

How does it work?

If a football club wants to change to the SAF format, which is not mandatory, the club has to choose to become an S/A (Sociedade Anônima, in portuguese – a company). It is undoubtedly a good chance to settle debts and improve the management and governance model. The club, however, can choose to continue in the associative model.

According to Law 14,193 (published on 08/06/2021), which established the SAF, any changes to the name, shield, uniform or anthem will only happen if there is an agreement with the association that created the club-company.

In relation to the assets, the legislation allows the entire assets of the club to be transferred or there is only the “split of the football department”. Participation rights, employment contracts and image use will be transferred to the SAF. SAF becomes responsible for hiring, agreements and salaries. There is no risk that liens affect the athletes’ salary payments, since football will be in charge of new SAF. As for sponsorship values ​​or TV quotas, possible commercial agreements will be automatically transferred to the SAF.

The taxation regime is specific (TEF) and the payment of taxes is different from associations: in the first five years, the club-company will allocate 5% of all revenues to a single tax, which replaces the collection of corporate income (IRPJ), contribution on net income (CSLL), PIS/Pasep and Confins (federal taxes) and, initially, there will be no payment on athlete transfer.

SAF is born without debt, while the club continues with its previous indebtedness.

via Portal Correio

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