Clause in the notice creates uncertainty about Flamengo's spending on the Gasometer land

Flamengo purchased the land for R$ 138,195,000.00 for the construction of the new stadium, but they still don't know if this will be the total amount to keep the space in the Gasometer region. The rules of the city council's notice place responsibility for possible losses in court on the club's account, in the dispute between Caixa Econômica Federal (CEF) as litigant.

Articles 11.7 and 11.8 of the final version of the notice, dated July 9, make clear the obligation of the successful bidder (Flamengo ) in the payment of "any difference, if any, between the value of the winning bid at the auction and that fixed in the expropriation process".

In the terms of purchase and sale of the property, the club undertakes to assume any judicial liens, taxes, tariffs and fines levied on the property, "renouncing, irrevocably, the right to subsequently charge such amounts from the Municipality".

For the lawyer specializing in administrative law Francisco Defanti, these conditions create some uncertainty about the final amount to be paid by Flamengo to take over the land in the central region of Rio de Janeiro, in addition to directing any possible loss to the club.

"There is no up or down parameter low. The value could be very high. It's a risk. It is the main risk that Flamengo runs. For any bidder who enters this model, the risk is this: you don't know what the value set by the judge will be up front. And Flamengo is committed to paying the difference that may be determined by the judge. This is both in the notice and in the promise of purchase and sale" - said Defanti in an interview with the portal "Lance".

Flamengo trusts in well-done expertise

Flamengo is aware of the litigious process ahead and calculated the risks before entering the auction. This is what the report heard from sources linked to the red and black board. the winning bid, but trusts in the expertise carried out by the city hall and in the studies that indicate an appreciation of the site no greater than R$ 240 million.

Lance spoke with members of the club's Deliberative Council who raised the issue! to the board. Behind the scenes, the directors showed confidence in dialogue with the parties involved, despite the inevitable legal fight. When contacted by the report, Caixa reported that it "does not comment on judicial matters".

It may be that. the value is actually higher. And this is done through expertise. The expert may identify this value as above or below the value set by the City Hall. I think it's very difficult for City Hall's assessment to be wrong. I imagine that the City Hall's assessment is reasonably correct - added Francisco Defanti.

Expropriation process

In recent days, Caixa returned to court to ask for the annulment of the auction won by Flamengo. The bank criticized the allegedly biased process to favor Flamengo and criticized the amount of R$138.2 million. The entity is the administrator of the investment fund that owns the property.

Before the notice, Flamengo offered R$250 million to reach an agreement with the current owners. The expropriation process could have been carried out amicably, but there was no agreement. For this reason, the City of Rio initiated the expropriation process because it considered the property "abandoned and without fulfilling its social function".

Now, an expert was appointed by the Court to determine the value of the property. Any possible divergence with the assessment made by the city hall will be resolved by the judge.