MSI: the Corinthians" Russian connection
[photo=KIA1.jpg id=118 align=right]A massive drama unfolded in Brazil last year and for once it did not involve the latest Globo soap opera. No, this time it was domestic football, and it had all the action, intrigue and mystery of the infamous Brazilian soap operas.
At the end of 2004 Brazil’s second largest club Corinthian’s decided to allow foreign investment into the club. The club had huge debts, high player wages and a under performing team. Its supporters were disillusioned, its board in disarray. Then enters a British/Iranian man called Kia Joorabchian. Joorabchian claimed to be the front man of a sports investment agency called MSI (Media Sports Investment Ltd) and was interested in creating a partnership with the club. The board had little or no choice but to discuss MSI’s proposal, despite the supporters’ fury.
Joorabchian persuaded the board and the fans in the same way Joan La Porta (of Barcelona fame) won over the supporters in Catalunya, he banded about major players names. MSI started issuing a potential wish list Carlos Tevez, Carlos Alberto, Kleberson, Vagner Love and the list went.
Now, as I’m sure most readers will realise Brazil has a history of exporting the world’s finest footballers. But importing? You must be kidding right? For Corinthian’s board members the offer was simply too good to refuse. Sure they didn’t know quite who they were dealing with but it seemed like a win, win deal to them. However the xenophobia of ex-players and supporters surfaced in a furious board meeting which ended in a full scale riot as the board approved MSI’s investment and accepted the deal.
True to his word Kia Joorabchian returned a few weeks later from Buenos Aires with the news that he had an agreed a deal with Boca Juniors, Carlos Tevez would be moving to Brazil for $20 million! Suddenly the football world sat up and took notice. Tevez had long been a target of Europe’s largest clubs and had just been top scorer in the Athen’s Olympics. How on earth could MSI/Corinthians afford to purchase and sustain the likes of Carloz Tevez at Corinthians in Brazil?
The Brazilian press was sceptical about the whole MSI purchase and started asking questions of the origins of the money. Just who is financing MSI? What do they hope to gain? As most bankers will tell you owning a football team is not something you do for the profits. But Joorabichian appears to think otherwise stating "My ideal would be to create the Real Madrid or Manchester United of Brazil — an international brand".
The Brazilians press started to dig a little deeper into MSI, Kia Joorabchian and his unknown past. Where are the head quarters of MSI ltd? Well it turns out that the official registration of MSI is at Accountancy firm in Central London (this is just about legal in the UK).
[photo=kiaartigo.jpg id=118 align=left]Kia Joorabchian’s background proved just as interesting. Born in Iran and educated in Britain, Joorabchian first appears in the UK’s media in 1999, when he and a partner bought an 85% stake in the Moscow newspaper ‘Kommersant’ using an investment fund based in the British Virgin Islands. He soon sold it to the Russia Oligarch (ultra rich and powerful business men) – Boris Berezovsky.
The Kommersant deal started the speculation about Berezovsky"s involvement, which appeared strengthened by comments in the Brazilian press attributed to Alberto Dualib, the Corinthians president. In transcripts of a tape recording, he said that on a recent visit to the UK with Joorabchian the two had "visited Berezovsky"s home near London".
In February Joorabchian gave an interview to the London Times newspaper. He denied any links to Berezovsky or Roman Abramovich although confirming he has had business dealings with both men before. "I did business with Roman and Boris seven years ago, but have had no contact since". "Boris is a close friend of mine, but he is not an investor and has no links to Corinthians."
While the media went wild with allegations, MSI kept buying players and announcing targets. So far the players signed list reads like a top European team. Javier Mascherano (joining in the summer), Carlos Tevez, Carlos Alberto, Marinho, Marcelo Mattos, Hugo, Sebastian Dominguez, Gustavo Nery and the latest to date is Roger from Benfica.
So, good as their word MSI created their South American ‘Galaticos’. Only Kleberson and Vagner Love (could still happen) slipped away. So the question, regardless of whom is financing these purchases, is what do MSI possibly hope to achieve with Corinthians? In Joorabchian’s words "We are not unrealistic — no matter how big a club you are, ultimately every player in the world will want to move on, but we want to turn this club into a force in international football."
The 10-year deal between MSI and Corinthians stipulates that the company will provide $35m cash, of which about $20m will pay off debts, in return for 51% of future profits while covering any losses. The transfer of Tévez is extra, considered a “gift" by Joorabchian to the club. Even Joorabchian with his lack of footballing knowledge must have realised that most European teams barely make a profit, let alone a South American club.
Now this whole story may sound a little familiar to our English readers. Chelsea was involved in a very similar ownership situation in the pre-Roman Abramovich era. The then chairman Ken Bates was a ‘front man’ for an unknown group of (Middle-Eastern?) business men who didn’t want their names revealed.
For now Corinthians sit top of the table and looking a good bet to win the Brazilian championship. Carlos Tevez has stunned even the most harsh critic with his world class abilities and right now you would not bet against Corinthians in the next Copa do Libertadores tournament. So on the face of it everything is going great for the MSI relationship, the fans stay quiet as long as the team keeps winning. But questions still remain of MSI’s long term intentions, recently Joorabchian has been publicly discussing purchasing an English club – West ham Utd being the likely target – which leaves Corinthians supporters still asking; Will MSI pull out and take their players with them to Europe? Who is really financing the club? Why aren’t they buying many Brazilian players based in Brazil?
Recommended links:
All about Corinthians
Pictures taken at the time of our travel to Brazil
The special week of Corinthians in sambafoot.com:
Roger, key to the revival
Carlos Alberto: giving my all for Corinthians
The Pacaembu Stadium
Corinthians: 95 years of passion
