The Botafogo Executive Football Committee presented details of Luis Henrique’s negotiations with Olympique de Marseille on Wednesday. The 18-year-old striker belonged to TAC, in Três Passos-RS, and had 40% of the economic rights linked to the alvinegro club.
– This player has generated a fabulous income for the club, which is allowing us to reach the end of the year. The president of TAC conducted the deal, Botafogo was in no position to do anything … We protect money all the time with the risk of seizures and various problems that could arise, so we are just talking today. Now the money has already entered and the commitments have been settled – said Carlos Augusto Montenegro to Botafogo TV.
According to Botafogo, Olympique made a proposal to the TAC for 8 million euros for 70% of Luis Henrique’s economic rights. Of that amount, Bota would be entitled to 3.2 million euros and 12% share in the athlete’s future sale by the French club.
– The Club negotiated to receive 3,904,362.95 euros and keep 5% of the rights and not have to pay the bonus of R $ 1 million (156 thousand euros) to the athlete – informs the note from Botafogo.
The committee explains that Botafogo will receive 850 thousand euros more when giving up a 7% share in the resale: “Practically the same, just changing money now for the percentage of future sales, mainly due to the financial need of the club’s cash in the very short term” .
With the current price of the euro, this means more than R $ 25 million. It is the biggest transaction in the history of Botafogo.
This week, Botafogo’s general vice president, Carlos Eduardo Pereira, CEP, asked the Board of Directors for conditions to sell Luis Henrique to Olympique.
Luis Henrique was sold to Olympique de Marseille – Photo: Disclosure / OM
“The Executive Football Committee presented, in an interview aired on BotafogoTV, this Wednesday (9/30), the details of the negotiation involving the athlete Luis Henrique with Olympique de Marseille, from France.
1. Luis Henrique arrived at Botafogo in September 2018, on loan, until January 31, 2020.
2. TAC (Três Passos Atlético Clube), Botafogo and athlete Luis Henrique signed, in December 2019, an extension of the loan agreement valid until December 31, 2022. Botafogo had a showcase fee of 40 %.
3. Botafogo paid R $ 500 thousand for the extension of this loan with funds from part of the sale of the athlete of the Base Categories Pimenta to Al-Wahda Football Club, from the United Arab Emirates, for US $ 400 thousand, on 12/15/2019 .
4. It was stipulated in this new contract that if a cash sale proposal of EUR 5 million or more was received, the player would not be negotiated unless one of the clubs opposed it.
5. In this case, however, that club would have to pay the other, in cash, its equivalent percentage, and would hold 100% of the athlete. In addition, if the sale was equal to or greater than EUR $ 5 million, Botafogo would pay R $ 1 million to the athlete, as a bonus, which is equivalent to today’s exchange rate of approximately EUR $ 156 thousand.
6. Olympique de Marseille (OM) made a proposal to the TAC of EUR $ 8M for 70% of the economic rights of athlete Luis Henrique. This is equivalent to the value of EUR $ 11,428,571.43 per 100%. Thus, each 1% of the athlete is worth EUR $ 114,285.71.
7. There was no intermediation in the business. Therefore, there is no commission payment to any agent.
8. For the showcase fee, Botafogo would then receive EUR $ 3.2m and retain 12% of the economic rights of the future sale. The Club negotiated to receive EUR $ 3,904,362.95 and keep 5% of the Economic Rights and not have to pay the bonus of R $ 1 million (EUR $ 156 thousand) to the athlete.
9. In cash, this means that we received an additional approximately EUR $ 850 thousand (3.9-3.2 + 0.156), giving up 7% of the future sale, which at the proposal values correspond to approximately EUR $ 800 thousand ( 7×114,285.71). Practically the same, just exchanging money now for the percentage of future sales, mainly due to the financial need of the club’s cash in the very short term “.