"New bankruptcy framework for football clubs aims to restructure debts in crisis."

The recent legislative advancement in the Congress of the Republic has opened the door to a new bankruptcy framework for football clubs in the country. This change, approved in a second vote on July 18, aims to address the financial crisis faced by several teams, allowing those with halted bankruptcy processes, such as Universitario de Deportes and Sport Boys, to restructure and settle their debts. The bill was sent to the Executive Branch on July 22, where it is expected to be addressed within 15 business days. The current situation of the clubs is delicate. Universitario de Deportes, for example, has been dealing with significant liabilities stemming from its entry into bankruptcy in 2012. However, despite the difficulties, it has managed to reduce its current debt from S/68 million to S/33 million since the suspension of its bankruptcy process in mid-2021. This progress is partly attributed to the oversight of the National Superintendency of Customs and Tax Administration (Sunat), which has highlighted the club's compliance with tax obligations. The proposed framework, which complements existing regulations, not only targets clubs with halted bankruptcy processes but could also include teams that already have ongoing procedures, such as Alianza Lima, Melgar, and Cienciano. This flexibility in the regulation suggests an inclusive approach, allowing more financially distressed clubs to access a viability plan that contemplates payment terms ranging from 10 to 30 years to settle their debts. However, the proposal has not been without criticism. Alianza Lima, through a letter sent to the government, requested the observation and non-promulgation of the law, arguing that it could affect tax collection. This concern is based on the notion that the proposed long-term payment plans could imply tax evasion, which could, in turn, harm public finances. The General Directorate of Public Revenue Policy of the Ministry of Economy and Finance (MEF) supported this position, suggesting that the new law should be reviewed. Despite these uncertainties, Sunat has highlighted the progress in tax debt compliance by Universitario de Deportes and has expressed its interest in ensuring that debts are paid, regardless of the framework established. This stance underscores the importance of clubs facing their financial responsibilities, which could be facilitated by the new bankruptcy framework. The legislative proposal faces three possible scenarios in the Executive. It may be accepted and published, observed and returned to Congress for further analysis, or ignored, allowing the president of Congress to automatically promulgate it. In the latter case, the regulation would take effect the day after its publication, enabling clubs to begin implementing their payment plans. The new bankruptcy framework also responds to a decision by the Constitutional Court in July 2021, which validated the suspension of bankruptcy processes and established a deadline for implementing effective regulations. This action demonstrates the need for a structured and legal approach to resolve the financial crises that have affected football clubs, whose relevance extends beyond sports, impacting the economy and culture of the country. On the other hand, the situation of clubs like Sport Boys is also under scrutiny. With the new framework, there is a possibility that even those currently not in a bankruptcy process could access benefits, as long as they demonstrate being in financial crisis. This opening could be crucial for ensuring the sustainability of most clubs in the country. In summary, the new bankruptcy framework for football clubs represents a valuable opportunity to restructure debts and revitalize the finances of the teams. However, its implementation will depend on the response of the Executive and the ability of the clubs to present solid viability plans. The wait for the government's decision, and the impact it will have on the future of Peruvian football, remains a matter of great interest and concern for both fans and authorities.