Preventive Transfer Ban: International Focus

What’s Going On?

The CBF (Confederação Brasileira de Futebol) has decided to apply a preventive transfer ban to Internacional. And why did this happen? The club joined the installment plan for debts in the CNRD (the CBF court that handles financial liabilities).

Understanding Fair Play

Under the Fair Play rules, entering this plan is seen as an insolvency event. That means that, just like in cases of judicial or extrajudicial reorganization, Internacional faces certain restrictions on hiring players and spending on football.

What Restrictions Apply?

Here are the main points the club needs to follow until the situation is resolved:

• Blocked Hiring: Any player registration will be frozen until the CBF approves it.
• Two Criteria for Registering Players:
  1. The club needs to raise more through the sale of players than it spends on purchases, including agents’ commissions.
  2. The payroll must be lower than the average over the last six months.

These rules will remain in place until Internacional manages to reach a financial restructuring agreement with the CBF. This means the club will have to follow a package of regulations for two years.

What About the Other Clubs?

Interestingly, Internacional is not the only major club facing this kind of situation. Grêmio was the pioneer in this story. Other teams, such as Vasco, Botafogo, Cruzeiro, Santos, and Corinthians, also opted for plans in the CNRD or judicial reorganization before the final deadline set. Because of that, they are not subject to the limitations that Internacional is facing.

Stay tuned, because this story is still going to produce many more chapters!