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In Crisis, Construction Company Receives Offer to Sell Palmeiras Stadium

08/28/2015 - 10h28

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JULIO WIZIACK
GUILHERME SETO
FROM SÃO PAULO

During this Brazilian Championship, no stadium has hosted more fans than Allianz Parque, where Palmeira plays.

The arena averages more than 34 thousand paying visitors per game, the most in the championship.

The success with the public, however, overshadows the financial crisis of construction company WTorre, the owner of the stadium in partnership with the team.

Without funds to pay arena suppliers, the company is facing bankruptcy filings and an offer to purchase the stadium.

Folha learned that, before the deadlock, the American multinational AEG who started managing the stadium a year ago and creates new revenue streams- sent a proposal to take over the arena in exchange for the payoff of all debts.

The offer reflects a situation that has placed the team, the construction company and AEG at odds.

Even though the company is not part of the Lava Jato (Car Wash) investigation, WTorre cannot secure financing.

The banks halted credit for civil construction in general after it was discovered that contractors accepted bribes for Petrobras contracts.

As a result, WTorre ended up delaying payment to arena suppliers, including AEG. The total debt is already at R $80 million (US$ 22.8 million). This affected the day to day activities of the stadium and its relationship with sponsors.

JBL, the company responsible for the sound system, interrupted service. To improvise, speakers had to be used on the lawn during an event.

In July, Tejofran, responsible for the heavy cleaning (removal of debris), requested the arena file bankruptcy for a debt of R $500,000 (US$ 142,800). WTorre and Tejofran reached an agreement, but the action could be resumed if payments are delayed.

On Monday (24), R Cevellini, a floors and coatings company, also filed a lawsuit against the construction company with a bankruptcy petition for R$ 693,000 (US$ 198,000).

With AEG, the discussion involves R$ 3 million (US$ 857,142). Until now, R$ 1 million (US$ 285,714) has been paid and the difference has been divided into installments.

The multinational also complained that the construction company compromised its revenue because it does not deliver as promised. AEG keeps eight percent of the value of each contract.

The Burger King restaurant, for example, took too long to be completed (the contract was closed in December 2012 and just opened this month). Meanwhile, AEG does not gain.

When consulted, WTorre denied having received any proposal for Allianz Parque and said that it had no interest in getting rid of the business.

The construction company chose not to comment on the actions of partners dissatisfied with the situation, such as Tejofran.

Palmeiras is also preparing to make a bid. According to its contract with WTorre, the team will only become sole proprietor of the arena in 2044.

The report also learned that Palmeiras president Paulo Nobre is trying to bring together investors to close an offer. Financial firm Crefisa, one of the team's sponsors, is among them.

Both AEG and Palmeiras are eyeing a promising deal. This year, the arena should generate R$ 80 million (US$ 22 million) in revenue and R$ 20 million (US$ 5.7 million) in profits. According to the original plan, there would only be money left over in 2019.

With money, Palmeiras was able to attract more fans to its stadium, which now has a powerful team.

When reached, AEG and Palmeiras chose not to comment on the situation.

Translated by SUGHEY RAMIREZ

Read the article in the original language

Tiago Ribas/Folhapress
The arena averages more than 34 thousand paying visitors per game, the most in the championship
The arena averages more than 34 thousand paying visitors per game, the most in the championship

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