Brazil’s Caixa bank refuse Corinthians £85m offer to pay off Neoquimica Arena debt

February 13 – Brazilian bank Caixa has refused a proposal by Corinthians to pay off the Neoquimica Arena, the club’s home ground since the 2014 World Cup. 

Local media report that the Sao Paulo-based club, headed by president Duilio Alves, offered more than R$531 million (£84.6 million) to the bank, but Caixa declined the offer.

The proposal included R$56.7 million (£9 million) from the agreement with Hypera Pharma for the stadium’s naming rights and the remainder, around R$175 million (£27.9 million), would be made up of the purchase, at a 90% discount, of debts that the bank would have to pay to third parties in the long term. The bank argued that revenue from the naming rights could not be destined to pay off stadium debts.

The Arena with a capacity of 68,000, later reduced to 47,000, was inaugurated with the opening game of the 2014 World Cup between hosts Brazil and Croatia and staged a further five matches during the tournament, but ever since the stadium has been a burden for Corinthians, who have struggled to raise enough funds to take ownership of the stadium.

Last year, the club had to pay almost R$100 million (£15.9 million) to the bank in interest, meaning that the actual debts for the stadium that exceed R$600 million (£95.6 million) will only begin to be paid off next year. The overall cost of the stadium was estimated to be just under R$ 1 billion (£160 million) and despite being a modern venue, the Arena has never generated the revenue Corinthians had hoped for.

In 2023, the club saw a record average attendance of 39,421 per match with the match against Bragantino in the domestic league generating the highest ticketing revenue of the season – €520,000.

Contact the writer of this story at moc.l1707827499labto1707827499ofdlr1707827499owedi1707827499sni@i1707827499tnuk.1707827499ardni1707827499mas1707827499


Source link : https://www.insideworldfootball.com/2024/02/13/brazils-caixa-bank-refuse-corinthians-85m-offer-pay-off-neoquimica-arena-debt/

Author : Paul Nicholson

Publish date : 2024-02-13 10:27:41

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