Centralized Execution Regime (RCE) and FIFA Solidarity Mechanism in Football Corporations (SAFs)

The Centralized Execution Regime (RCE) constitutes an autonomous creditor repayment framework before state and labor courts (Articles 13 to 24 of Law 14,193/2021):

• Unified execution venue: Consolidates creditor executions into a single centralized court, preventing unilateral asset freezing or bank garnishments against the operational SAF;
• Statutory timeframe: Imposes a primary 6-year repayment plan for consolidated legacy debts;
• Conditional extension: Allows a 4-year extension (up to 10 years total) if at least 60% of original debt has been amortized by year six.

The RCE is funded via mandatory operational cash contributions:

1. Gross Revenue Allocation: The SAF must allocate 20% of gross monthly operational revenue directly to the central court;

2. Dividends & Capital Interest: When dividends are declared, 50% of distributed net profits must be routed to accelerate creditor debt amortization;

3. Statutory Creditor Order: Strict preference order prioritizes labor claims up to 60 minimum wages, elderly/vulnerable creditors, general labor claims, and civil contracts.

In cross-border player transactions, international transfers are governed by the FIFA Regulations on the Status and Transfer of Players (RSTP) (Article 21 and Annex 5). Up to 5% of transfer compensation is distributed to clubs contributing to player training between ages 12 and 23:

• Ages 12–15: 0.25% per complete season (up to 1.00%);
• Ages 16–23: 0.50% per complete season (up to 4.00%);
• Maximum Distribution: 5.00% of total gross transfer fee or paid loan.

The centralized FIFA Clearing House (FCH) automates international training rewards:

• Electronic Player Passport (EPP): Real-time digital registry tracking player registration history across national federations;
• Automatic TMS Allocation: Allocation statements generated via the Transfer Matching System (TMS);
• AML/KYC Screening: Centralized compliance verification and funds distribution to eligible training clubs.

• RCE Revenue Conciliation: Immutable cryptographic ledger recording audited monthly revenue and judicial bank deposit slips;
• Training Passport Chronology: RFC 3161 timestamping of youth match rosters and academy registrations;
• Privacy & Youth Protection (LGPD): Cryptographic segregation of minor player personal data pursuant to statutory data protection regimes.

1. Does the SAF assume legacy federal tax debts of the founding club?

No. The SAF is only responsible for its dedicated statutory RCE contributions and its own Corporate Football Tax Regime (TEF). Legacy federal tax obligations are settled directly by the original association via special statutory tax settlement programs.

2. What occurs if an SAF defaults on its 20% monthly RCE revenue transfers?

Persistent default empowers the centralized court to terminate the RCE, lifting execution suspensions and exposing the SAF's commercial revenues to immediate attachment.

3. How quickly do training clubs receive FIFA Solidarity funds through the Clearing House?

Under FCH automation, settlement typically occurs within 30 to 60 days following buyer fee disbursement, subject to EPP validation and AML approval.

4. Are international paid loan fees subject to FIFA Solidarity deductions?

Yes. Article 21 of the FIFA RSTP explicitly mandates a 5% solidarity deduction on financial compensation paid for player loan agreements.

5. What role does Venko perform in SAF sports governance?

Venko provides neutral B2B document governance software, immutable WORM logs, and multi-tier approval verification. Venko does not act as a financial custodian, payment processor, or sports agent.