Brazil’s Vasco da Gama and embattled investment firm 777 Partners are escalating their legal dispute as the American company took legal action on Tuesday to regain control of the top-tier soccer club.
A Rio de Janeiro judge had temporarily removed 777 Partners from managing Vasco’s soccer department last week following complaints from the club. Brazilian law permits foreign entities to purchase soccer sections of multi-sport clubs, a process known as SAF.
Although the initial ruling is pending confirmation, 777 Partners intensified their legal battle, alleging that the club failed to pay image rights to players as scheduled on Monday.
“This marks the first delay in wages or image rights payments since we took over 18 months ago,” 777 stated on Tuesday.
“The injunction temporarily removing us from Vasco’s SAF command prevented us from making a bridging payment, which we did last year during the same period when soccer revenues were lower.”
Image rights constitute part of footballers’ compensation. Vasco officials have asserted that player wages are current.
The legal dispute in Brazil compounds challenges for the Miami-based company, which has encountered legal setbacks over its ownership of Belgium’s Standard Liège and other financial issues.
Last week, a court in Liège ruled in favor of Standard’s former owner Bruno Venanzi, and company shareholders who own the club’s stadium. They alleged that 777 had defaulted on a payment.
