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Thursday, 23 January 2014

WHAT EXACTLY IS BEING INVESTIGATED?

Barcelona, Neymar and the company N&N signed a contract in Sao Paulo in 2011 with a view to the forward moving to the Catalan club in 2014, when the player's contract was due to expire.

Included was payment of €10m as a loan, to be repaid when the player moved to Barca - as stipulated in the agreement. In addition, the two parties fixed a price for Neymar's playing rights at €40m (which was to include the €10m loan). A penalty clause of €40m for breach of contract was also written into the accord.

However, the two teams ultimately agreed to bring the deal forward a year and Neymar transferred to Camp Nou in the summer of 2013. Barca agreed to specific conditions with Santos and recognised that the previous contract could not now be fulfilled. They therefore were forced to pay the €40m penalty clause.

That is seen as suspicious by the judge and the prosecutor, who are now investigating whether the transfer went through not under a conventional agreement, but through a penalty clause instead. They also suspect that the €10m loan was paid as a guarantee of a future contract, something all but admitted by Barca in Neymar's unveiling in May, but which is against Fifa rules.

Due to the mismatch between the concepts outlined in the contracts (of which it has been claimed there were as many as 12 different ones), both issues could indicate contractual simulation.

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