How does this affect Brazilian football?

Earlier this week, the euro hit the same value as the dollar for the first time since 2002, when the single European currency was created. It is linked to the conflict between Russia and Ukraine and the geopolitical instabilities generated by it.

Even far from the war, Europe, the United States and even the most profound discussions of the financial market, there are people in Brazilian football who are worried about the event. They are clubs, businessmen and athletes who fear the impacts of the parity between currencies in the big businesses that are playing. The dilemma is simple: if there are days when the euro is worth less than the dollar, why evaluate and sell a player in euro?

“An important yellow light was born in this aspect. As the dollar reached parity with the euro, there are exchange analysts who even predict that the dollar will exceed the value of the euro. in euros, they will receive, in reais, less than they expected to receive at the time of the negotiation”, reflects the lawyer Eduardo Carlezzo, specialized in football business and partner at Carlezzo Advogados.

O UOL Esporte heard another specialist, lawyer Marcel Belfiore, authority in Sports Law and partner at Ambiel Advogados. The view is the same as that of his professional colleague: “For Brazilian clubs that transferred players with a price fixed in euros before the devaluation, and that still have amounts receivable due to installments or delays, the devaluation of the euro can be felt. hypothesis, the amount in reais that the club would receive if the payment was made in cash would be greater than if it is paid after the devaluation. This can, of course, mean loss for the Brazilian club.”

Representatives of players consulted by the report said that clubs are already concerned about the matter. It’s all very recent, because the euro’s weakness against the dollar only gained strength this year. But it is already a topic behind the scenes of the negotiations and it can interfere in the future of our players and also in what currency our clubs will sell them.

O UOL heard that a player from the Brasileirão Serie A who has advanced negotiations with a European club may actually be sold to Saudi Arabia because the values ​​in euros and dollars of the transaction are now equivalent, with an advantage for the Arabs in other clauses than the Europeans don’t want to give in.

“In this type of business, the parties can establish the currency for fixing the transfer price, according to their respective claims related to the exchange rate risk. As the paying clubs are usually foreigners and our currency is more volatile, this risk is usually with the Brazilian clubs. , which not infrequently see gains due to the devaluation of the real. With this new scenario, perhaps there are Brazilian clubs that prefer to set the transfer price in dollars, instead of euros, as they imagine a lower risk of devaluation of the dollar against the real compared to the euro”, says Marcel Belfiore, but not believing that this will become a market trend because European football continues to be much more seductive.

João Victor, ex-Corinthians, is now from Benfica

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If it becomes a trend, adds Eduardo Carlezzo, it is not a matter for the current transfer window, which is open for another 46 days at least in the most important markets, such as Germany, Spain, France, England and Italy: “Just as the euro gained strength against the dollar in the last 20 years, the seesaw can now be reversed, and we can expect that this issue is already on the agenda of items to be dealt with when an athlete is transferred. But perhaps not yet with such emphasis in this window.”

Experts do not believe that the current window is weaker because of the parity between the currencies.

So far, there have been three main negotiations between Brazilian clubs and international football: Corinthians sold João Victor to Benfica for €9.5 million (R$50.7 million on the day of the transfer announcement), São Paulo negotiated Gabriel Sara with Norwich City for 9.5 million pounds (about R$ 60 million) and Flamengo gave Willian Arão to Fenerbahce for 3 million euros (about R$ 16 million).

There is a good chance that the next negotiations will feel more firmly the impact of the euro falling at the same value as the dollar. Also because there is no forecast of change in the issue of energy supply and raw materials on the European continent while the war lasts. “Tends to remain firm during this year”, predicts Eduardo Carlezzo. Or until the European authorities make use of economic measures to stabilize the variation of the currency.