The Law Rules in Lyon’s Favor

By: Inara | July 12th, 2007

The end to the Nilmar saga has arrived. At least until Corinthians find yet another way to delay payment.

In a press release, Lyon announced that the Court of Arbitration for Sport (the highest possible authority in athletics) ruled in their favor. This means that Corinthians have to honor the contract they made with Lyon regarding Nilmar (the real contract, not the fake one).

Don’t be deceived. Nilmar is stressing out on the inside.

From the press release:

FIFA, then the Court of Arbitration for Sport successively acknowledged the validity of the transfer from Olympique Lyonnais and the reality of the debt of Corinthians towards Olympique Lyonnais. Olympique Lyonnais will now ask FIFA to implement the terms contained in the first ruling [February 2007 by FIFA] so that Corinthians honor their obligations.

Anyone who knows anything about Brazilian football can tell you that the Corinthians have no money. They can barely pay their own players (this is all due to the gross mismanagement by MSI). So there is little chance of Lyon seeing the remaining €8m paid back to them.

I realize this is a confusing subject because it’s been going on for so long, with so many different parties involved who want different things, and with rumors of scandals mixed in as well, so I thought it would be helpful if I broke down the entire saga, with links on the bottom for further information.

Nilmar with Lyon’s “Magic Triangle” of Juni, Essien, and Diarra.

Solutions:

1. Nilmar returns to Lyon. However, no one wants this. Nilmar doesn’t want to play for Lyon after they sent him back to Brazil because of Fred, nor does he want to be a squad player. Lyon, on the other hand, don’t have any extra non-EU spots and furthermore, aren’t convinced by him as he always seems to be picking up injuries. And then there is his possible involvement in his fluke transfer.

2. Lyon get a player from Corinthians in lieu of cash. This seems to be the best solution. Problem is, there isn’t a single player that Lyon really want at the moment. They followed Eduardo Ratinho for awhile but dropped their interest. The current flavor of the month seems to be Willian Borges da Silva, though he hasn’t been that convincing.

Complications:

On Lyon’s side of things, until Juninho gets his French passport, all four non-EU spots are currently filled (Fred, Cris, Fabio Santos, and Juninho). Also, the club prefers Renato Augusto, but he plays for Flamengo. So it’s unclear whether they’ll be able to pursue him if they also have to take up a Corinthians player.

The Corinthians lose out. To be fair, most of the mess is because of MSI. It was MSI who wanted Nilmar, it was MSI who arranged the transfer, and it was MSI who promised to pay for it. But due to a falling out with the club’s management, they backed away from Corinthians and now refuse to pay Lyon, leaving the burden on Corinthians.

Nilmar himself gets screwed over. He wanted Lyon to lose the court battle because he is having other problems with Corinthians (they aren’t paying his wages, etc) and wanted to terminate his contract with the club (rumor was that he was being courted by Flamengo and Benfica). But if Lyon won the battle and Corinthians were forced to pay them, there would be little chance of Nilmar leaving since the club just shelled out €8m for him.

So there really is no happy resolution since all three sides lose in the end.

Keep praying, buddy.

Timeline:

August 2004: Lyon buy Nilmar (then 19) from Internacional for €7.5m.
April 2005: During the Champions League second leg quarterfinal match against PSV, Nilmar is fouled in the penalty area but the referee doesn’t see the infraction and doesn’t award Lyon a penalty that could have propelled them to the semifinals.
May 2005: Nilmar finishes his first season in disappointment. Other than two goals in the Champions League and two goals in L1, his performance was otherwise unimpressive.
August 2005: The arrival of Gerard Houllier spells doom for Nilmar. Lyon buy Fred from Cruzeiro, and with too many Brazilians on the roster, Nilmar is the one chosen to be sacrificed. Corinthians agree to take him on loan, paying Lyon €2m, with an option to buy for another €8m.
May 2006: Nilmar ends the year as the best striker in the Brasileiro. Corinthians decide to make his loan permanent.
September 2006: Not receiving payment, Lyon attempt to work out the situation with Corinthians.
October 2006: For the first time, Lyon evoke the possibility of Nilmar’s return since his transfer fee wasn’t forthcoming.
December 2007: Lyon take the matter to FIFA.
January 2007: FIFA rule in Lyon’s favor. Corinthians must pay Lyon. Corinthians appeal.
June 2007: The Court of Arbitration for Sport delay their verdict due to new information.
July 2007: The Court of Arbitration for Sport uphold FIFA’s original ruling.