Corinthians Hires High-Profile Attorney To Block Ousted President's Return Amid Financial Probe

(MENAFN- The Rio Times) Corinthians, one of Brazil's largest football clubs, has hired Gustavo Bonini Guedes, the lawyer known for representing former president Michel Temer, to prevent the return of impeached president Augusto Melo.

This move follows months of turmoil after the São Paulo Civil Police indicted Melo and several former directors for money laundering, criminal association, and qualified theft in connection with a sponsorship deal with betting company VaideBet.

The Civil Police found that Corinthians paid R$1.4 million to an intermediary, who then transferred large sums to shell companies, including one registered to a woman living in poverty with no knowledge of the business.

Investigators linked some of these transactions to money laundering operations tied to organized crime. The police concluded their report and sent it to the Public Prosecutor's Office, which may soon bring formal charges.

The scandal erupted after VaideBet, which signed a record R$370 million sponsorship deal with Corinthians in early 2024, terminated its contract within six months.



The betting company cited suspicions of unethical and illegal conduct, noting that the club failed to provide satisfactory explanations for the irregularities. By then, Corinthians had already received R$60 million from the deal.

As the crisis deepened, the Corinthians Deliberative Council voted 176 to 57 to suspend Melo in May 2025, with one abstention. The council accused him of violating club statutes and exposing the institution to reputational and financial risk.

Interim president Osmar Stabile now leads the club , pending a final vote by the general assembly of members. Melo's supporters have challenged the impeachment in court, seeking to reinstate him and remove council president Romeu Tuma Júnior.

Corinthians' new legal team argues that the council followed all internal rules and that reversing its decisions would undermine the club's self-governance. The VaideBet scandal has already cost Corinthians its largest sponsorship and threatens to destabilize the club's finances.

The case also highlights the risks of weak oversight in sports organizations, as well as the potential for criminal groups to exploit high-value contracts. The outcome will shape not only the future of Corinthians but also the standards of governance in Brazilian football.

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