Benfica: One of the minority shareholders points the finger at the conflict of interest of Domingos Soares Oliveira

Lawyer Jorge Matamoros, who filed a lawsuit last year to try to impeach Benfica’s president, Luis Felipe Vieira, is back on the charge. But this time as a sad Benfica investor, and to point the finger at what he says are a conflict of interest involving Benfica’s chief executive (CEO) SAD, Domingos Soares Oliveira.

Jorge Matamoros sent a letter to the CEO of Benfica SAD and to the Securities Market Authority (CMVM) warning that the prospectus for the bond loan is in progress, as Benfica SAD wants to raise 40 million euros, omitting some conflicts of interest, namely: Benfica listed company.

“The information in the prospectus must be “complete, true, current, clear and objective.” In my opinion, the information provided to investors in the written extract does not meet these requirements in relation to your person, as I understand that you are in a situation of conflict of interest that must be explained to the market and addressed,” it stated. In the letter from Jorge Matamoros to Domingos Soares de Oliveira, which pass He has access.

The excerpt in question is the passage from the bond loan prospectus that states, “To the knowledge of Benfica SAD, there is no potential conflict of interest between the obligations of any of the persons forming part of the issuer’s management and supervisory bodies and their own interests or other obligations.”

The letter, addressed to Domingos Soares de Oliveira, CEO of Benfica SAD, takes on a critical tone. “A situation of conflict of interest, or potential conflict of interest, between Benfica SAD and the Director, and in particular the CEO, is an effective risk that must be communicated to the market, Where it can have an appropriate impact on the financial and sporting situation of society,” Jorge Matamoros wrote in the letter.

Counsel warns that not only does a director with a conflict of interest “might make decisions in favor of ‘own interests or other obligations’ at the expense of the interest of society and the good management obligations that he is bound by”, but also that Benfica SAD could be exposed to “potential liability to investors or Regulatory penalties for providing false or incomplete information to the market.

“To avoid materializing this risk to the detriment of Benfica SAD and its investors, I ask that you, as a shareholder and underwriter for the Bonds, provide additional information that demonstrates the (apparent) conflict of interest you find yourself in,” says Jorge Matamoros.

Jorge Matamoros is a minority shareholder in Benfica SAD.

Jorge Matamoros is a minority shareholder in Benfica SAD.

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A key point made by the lawyer, who has been a partner at Benfica for 28 years but is only a contributor to SAD since the beginning of this month, is the concerns The fact that Domingos Soares de Oliveira integrates the management of Liga Centralizaçãoa company set up by the Portuguese Football Professional League with the aim of centralizing the television rights of clubs.

Jorge Matamoros asks How can Domingos Soares de Oliveira at the same time defend the interests of Benfica, as CEO of the “Eagles”, and the economic interests of the League and anti-Benfica clubs?As manager of Liga Centralização.

“How are you, as CEO, able to maximize the ‘negotiating power of Benfica SAD towards the entities to which the exploitation rights have been assigned’, at the same time being responsible and ‘coordinating’ Liga Centralização, specifically the entity whose purpose is to market and exploit These TV rights are in the interest of all clubs, including Benfica’s rivals?”, asks the lawyer.

Matamoros is even suggesting that Soares de Oliveira leave Benfica.

“You are one of the best-paid managers in the national market, including listed companies, with a salary, bonuses and benefits in excess of half a million euros paid by Benfica SAD, for your competence and absolute loyalty,” the lawyer notes.

Jorge Matamoros asserts that “these are values ​​that the vast majority of Benfica SAD’s true shareholders, members of Sport Lisboa Benfica, and retail investors who today trust the information contained in the prospectus, could not one day dream of earning their income from the business.”

“If, as stated, you are considering assuming the role of the exclusive ultimate responsibility for marketing the combined revenue of all Portuguese football, on behalf of the league, then naturally you will have the legitimacy to choose this new path of your career. However, in this case, it must inform the shareholders and the entity regulatory and act accordingly, leaving Benfica SAD”, ​​he reads the same letter.

Jorge Matamoros also warns of a potential conflict of interest due to the red card process and the fact that Benfica SAD chose not to be assisting in the process, which led to the many-year arrest of former Benfica president Luis Felipe Vieira, whose right arm, Domingos Soares de Oliveira. In this regard, Benfica SAD says that the audit is not expected to be completed before the end of this year.

“I admit that the conclusions of the work in progress do not define the reprehensible behavior of Official Domingos Soares de Oliveira. But In order to protect all stakeholders, in particular that of Benfica, the official under audit cannot also be part of the executive team that monitors or supervises the work.Jorge Matamoros criticizes.

to me pass Jorge Matamoros explained that he went through this initiative alone, without prior contact with other SAD contributors, and considered that this did not impair his performance.

“I do not bother to write this letter individually. On the contrary, when we defend principles and values, and it is true, it does not matter how many there are. Moreover, I remember very well that when I filed a lawsuit against the former president, I was also alone, and I see how it developed “, Jorge Matamoros said: pass.

You can read Jorge Mattamouros’ letter to the CEO of Benfica SAD and CMVM in full here.

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