1. www.carlezzo.com.br Brazil Corporate governance and investments on football clubs EDUARDO CARLEZZO

2. www.carlezzo.com.br 1.Corporate structure of football clubs. Associations x Corporations 2. Consequences in Brazil and South America of the FIFA ban on the investments on player's economic rights (TPO)

3. www.carlezzo.com.br Corporate structure of football clubs Applicable law: civil code (Law n. 10.406) and sports general law (Law n. 9.615) No specific regulations governing the ownership of football clubs No specific regulations about corporate governance of football clubs Following long tradition, clubs are incorporated as associations

4. www.carlezzo.com.br Corporate structure of football clubs More than 99% of the football clubs are incorporated as associations All the 20 Serie A football clubs are associations Despite being allowed, no foreign ownership exists

5. www.carlezzo.com.br Corporate structure of football clubs Only small clubs have an owner Even having an owner, the clubs retain the association structure due to the lower taxation

6. www.carlezzo.com.br Corporate structure of football clubs Future Will foreign investors buy big football clubs in Brazil?

7. www.carlezzo.com.br Transfer Market Brazil is the biggest exporter of football players 13% of the players being transferred internationally are Brazilians 27% of the players being transferred internationally are South Americans Brazil is the most represented nationality in the 31 top football leagues in Europe in 2013 (471)

8. www.carlezzo.com.br Transfer market

9. www.carlezzo.com.br Transfer Market

10. www.carlezzo.com.br Transfer Market

11. www.carlezzo.com.br Transfer market Will the fees involving transfers continually increase?

12. www.carlezzo.com.br Consequences in Brazil and South America of the FIFA ban on the investments on player's economic rights (TPO) What are the player’s economic rights?

13. www.carlezzo.com.br Consequences in Brazil and South America of the FIFA ban on the investments on player's economic rights (TPO) How are the deals on economic rights implemented?

14. www.carlezzo.com.br Consequences in Brazil and South America of the FIFA ban on the investments on player's economic rights (TPO) FIFA DECISION (SEPTEMBER/14): THIRD PARTY INTERVENTION IS BANNED! What does that mean?

15. www.carlezzo.com.br Consequences in Brazil and South America of the FIFA ban on the investments on player's economic rights (TPO) Impact on the short term for the clubs: negative Impact on the medium and long term for the clubs: positive

16. www.carlezzo.com.br Consequences in Brazil and South America of the FIFA ban on the investments on player's economic rights (TPO) Will investors buy clubs to keep trading economic rights?

17. www.carlezzo.com.br Grazzie! carlezzo@carlezzo.com.br