Benfica pounces on Sporting, talks unfair competition and reacts to ‘sadly historic day’ because of VMOC – Observer

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What happens next to Luz does not happen next to Benfica. And it’s not happening in a vehement way, the most vehement since Rui Costa took over as president of the reds five months ago. The announcement of the takeover of part of VMOC by Sporting on the eve of the elections for the Alvalade group, the lions holding 83.9% of the capital of SAD, anticipating the income from the financing operation, did not go well with the rival and the eagles were keen to express it in the usual newsletter of the club.

“Today is a historic day for Sporting: the club has the majority of SAD”, underlines Varandas

“At last, history, yes, unfortunately history day when a gigantic debt forgiveness at Sporting, SAD was consumed. A day when a bank intervened by the state with taxpayers’ money, at a time when foreign investors are multiplying in Portuguese football, hastily got rid of an asset at a discount of 70% (or more). This asset, in turn, had already been overvalued at the start of the operation”, he began by referring, in an allusion to the words of Frederico Varandas, president of the lions, to talk about the importance of business for greens and whites.

“Sporting, SAD incurred a debt with BES and Millennium BCP which it was unable to repay. Sporting, SAD restructured this debt, benefiting from a grace of 12 million euros of accrued and unpaid interest. Sporting, SAD and these two banks converted more than 150 million euros of Sporting, SAD’s debt into a financial instrument called VMOC, valuing each security at one euro while the shares of Sporting, SAD were listed well below this value. Sporting, SAD, throughout these years has not stopped investing in the football team, presenting negative results in several exercises, having even returned to a situation of technical bankruptcy, in a persistent and unacceptable unfair competition with the other national football clubs ”, pointed out the embodied in the same text.

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Two and a half minutes of program, a debate and the takeover of the VMOC: the campaign of Frederico Varandas for the Sporting elections

“Now Sporting, SAD are buying VMOCs, supposedly for 30% of their value (it might have been less). It is indeed a historic day! The day Sporting, SAD benefited from an operation in which a bank intervened by the State with taxpayers’ money, he sold well below the price at Sporting what he had bought well above the price at the same Sporting. We look forward to the Parliamentary Commission of Inquiry dedicated to this subject”, concluded the newsletter.

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