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Corinthians President Augusto Melo Ousted Amid Money Laundering Scandal
(MENAFN- The Rio Times) Augusto Melo was removed as president of Brazil's Corinthians football club on May 26, 2025, after a decisive vote by its Deliberative Council.
The move followed a seven-month investigation into financial misconduct tied to a sponsorship deal with betting firm VaideBet. Of 234 votes cast, 176 council members supported his impeachment, 57 opposed it, and one abstained.
Interim leadership falls to vice-president Osmar Stabile until a general assembly ratifies the decision. The scandal centers on a R$370 million ($69.4 million) sponsorship agreement signed in January 2024.
Police allege Corinthians funneled R$700,000 monthly to Rede Social Media Design Ltda, a shell company linked to intermediary Alex Cassundé. Funds were later traced to Neoway Soluções Integradas, a front tied to Brazil's Primeiro Comando da Capital (PCC) criminal network.
São Paulo's Civil Police indicted Melo, former directors Marcelo Mariano and Sérgio Moura, and Cassundé for money laundering and criminal association. VaideBet terminated the contract in June 2024, citing breaches of its anti-corruption clause.
Auditors rejected Corinthians' 2024 financial reports, revealing debts exceeding R$2.5 billion. Melo's administration faced further criticism for failing to submit audited accounts and a exodus of directors, including finance chief Rozallah Santoro.
Melo refused to resign, calling his ouster a“political defeat” but vowed to contest the decision. His 16-month tenure saw sporadic successes, including settling overdue player salaries and securing sponsorships.
However, sporting results faltered-the team underperformed domestically and internationally despite high-profile signings like ex-Barcelona forward Memphis Depay.
The case highlights systemic risks in Brazilian football 's reliance on betting sponsorships. A parliamentary inquiry into match-fixing and financial transparency has intensified scrutiny nationwide.
Corinthians' membership assembly, required within five days, will determine Melo's permanent status. If upheld, new elections will appoint a president to serve through 2026.
The move followed a seven-month investigation into financial misconduct tied to a sponsorship deal with betting firm VaideBet. Of 234 votes cast, 176 council members supported his impeachment, 57 opposed it, and one abstained.
Interim leadership falls to vice-president Osmar Stabile until a general assembly ratifies the decision. The scandal centers on a R$370 million ($69.4 million) sponsorship agreement signed in January 2024.
Police allege Corinthians funneled R$700,000 monthly to Rede Social Media Design Ltda, a shell company linked to intermediary Alex Cassundé. Funds were later traced to Neoway Soluções Integradas, a front tied to Brazil's Primeiro Comando da Capital (PCC) criminal network.
São Paulo's Civil Police indicted Melo, former directors Marcelo Mariano and Sérgio Moura, and Cassundé for money laundering and criminal association. VaideBet terminated the contract in June 2024, citing breaches of its anti-corruption clause.
Auditors rejected Corinthians' 2024 financial reports, revealing debts exceeding R$2.5 billion. Melo's administration faced further criticism for failing to submit audited accounts and a exodus of directors, including finance chief Rozallah Santoro.
Melo refused to resign, calling his ouster a“political defeat” but vowed to contest the decision. His 16-month tenure saw sporadic successes, including settling overdue player salaries and securing sponsorships.
However, sporting results faltered-the team underperformed domestically and internationally despite high-profile signings like ex-Barcelona forward Memphis Depay.
The case highlights systemic risks in Brazilian football 's reliance on betting sponsorships. A parliamentary inquiry into match-fixing and financial transparency has intensified scrutiny nationwide.
Corinthians' membership assembly, required within five days, will determine Melo's permanent status. If upheld, new elections will appoint a president to serve through 2026.
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