On January 9, 2013, Flamengo and Bahia signed the "Private Instrument for the Transfer of a Professional Football Player and Other Agreements", which has as its object the onerous and definitive assignment, by Bahia to Flamengo, of 50% of the Athlete's economic rights, for the amount of 2.200.000,00 Euros, to be paid as follows: 500.000,00 Euros due on January 11, 2013; 400.000,00 Euros due on May 31, 2013; 400.000,00 Euros due on August 31, 2013; 450.000,00 Euros due on January 31, 2014; and 450.000,00 Euros due on April 30, 2014.

The contract obliged Flamengo to "present, by February 9, 2013, a bond, assignment of credit rights or any other form of guarantee, acceptable to Bahia, acting reasonably, which satisfies all payment obligations now assumed by the former, under penalty of losing the amount equivalent, in national currency, to 500.000,00 Euros to be paid on January 11, 2013, in addition to the immediate return to Bahia of the federative registration rights and participation in the economic rights of the Athlete who is the subject of this agreement, which will be automatically terminated by full right, without any other type of compensation being due, from either party."  

On January 11, 2013, Flamengo made the payment of the 1st installment in the amount of R$ 1.370.000,00, corresponding to 500.000,00 Euros at an exchange rate of R$ 2,74.

Due to the club's serious economic and financial situation at the beginning of the year, aggravated by the seizures of the Plaza Consortium and the Attorney General's Office of the National Treasury, and the need to protect itself from currency fluctuations, since it made the purchase in euros, Flamengo found it difficult to obtain any type of guarantee that would satisfy the contractual clause, putting it at risk of losing the economic rights of the Athlete Gabriel, as well as the payment made on January 11, 2013. On the other hand, Bahia demanded the contractual guarantee, leaving Flamengo with only the possibility of paying the due installments in the amount of 1.700.000,00 Euros or returning the Athlete's economic rights.

Flamengo had a loan assignment offer to Fundo Polo, approved by the club's Board of Directors on December 10, 2012, for a total amount of R$27,3 million, with R$2012 million contracted in December 17,4. Fundo Polo offered Flamengo to settle its €1,700,000 debt for R$4.250.751,81, corresponding to an exchange rate of R$2,50. On the same date, February 06, 2013, the exchange rate was R$2,69, representing a 7% discount for cash payment. To meet the need for cash disbursement, Fundo Polo released another installment of the loan assignment agreement on February 05, 2013.

Considering the exchange rate risk inherent to the purchase, the Euro exchange rate on May 31, 2013 was R$2,77 and on August 30, 2013 it was R$3,13. If the exchange rate fixed at R$3,13 for the 2014 maturities is considered, Flamengo's gain on the operation was R$926.248,19, corresponding to 18%.

BOARD OF DIRECTORS OF THE FLAMENGO REGATTAS CLUB