Media Sports Investments - MSI and Corinthians

MSI and Corinthians

Media Sports Investment Limited was founded in 2004 in London by Joorabchian and Nojan Bedroud (a FIFA licensed agent) to purchase Corinthians. The agreed 10-year deal stated that MSI would invest $35 million into the club –$20 million of which would cover debts– in return for 51% of profits over the duration of the contract. In the wake of MSI's involvement a stream of new players arrived at the club, players who were engaged to play for Corinthians but whose economic rights were partly or wholly owned by the investment fund. According to the investigation of Sao Paulo police, MSI not only financed Corinthians but also financed to buy players directly, namely Carlos Tévez (35%), Carlos Alberto (50%) and Sebastián Domínguez (100%). While Nilmar, the labour court of Brazil had cancelled his contract with MSI and Corinthians in 2007. MSI also worked with Global Soccer Agencies bought players for Corinthians, namely Javier Mascherano and Carlos Alberto (another 50%). Marcelo Mattos, which bought by Devita Limited (the company also financed MSI Brasil and Corinthians) also played for Corinthians. Other players such as Rafael Moura, Johnny Herrera and Renato Ribeiro were linked to MSI by Brazil media. The signing of Tévez from Boca Juniors for reported US$22 million (US$16 million plus various fee) in December 2004 was a record for a transfer by a South American club.

The deal to take over Corinthians had been the subject of investigation by the Brazilian police, although no wrongdoing was found. In July 2007, however, a Brazilian judge issued arrest warrants for Boris Berezovsky, Joorabchian, Bedroud and four officials of club, including the chairman, Alberto Dualib, on charges of money laundering. MSI Brazil arm, MSI Licenciamentos e Administracao Ltda, received money from Devetia Limited, a BVI company. MSI Licenciamentos was owned by Devetia, MSI Group Limited (formed in 2000 as Exnon Holdings Limited) and Just Sports Inc., (later sold all the shares to MSI Group and Devetia), which Joorabchian was the director of Just Sports and the rest was linked to Berezovsky, Patarkatsishvili and Pini Zahavi. However BVI company act protected the real identity of the ownership.

The federal attorneys Silvio Luis Martins de Oliveira and Rodrigo de Grandis were reported by the Brazilian legal website consultor Juridico as saying that MSI's transactions were "carried out with the use of numerous offshore accounts which have the single and well-known intention of distancing the investor and the illicit origin of the resources from their final destination, in this case the purchase and sale of players".

In July 2007, in the light of the money laundering allegations, Corinthians broke off their association with MSI. Despite winning the league in 2005, there had already been a public breakdown in relations between Corinthians and MSI. The club had seven different coaches in 18 months, including Daniel Passarella, Márcio Bittencourt and Antônio Lopes, and had struggled for form. Joorabchian's involvement with team affairs had come in for criticism and both Tévez and Javier Mascherano had been moved to West Ham United in the English Premier League. In December 2007 Corinthians was relegated to the Brazilian Championship's second division.

The warrant for Joorabchian's arrest was suspended by the Brazilian authorities in August 2008.