Faroni Commission Scandal: 30% Contract Linked to Brazilian Governor
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AFA Under Inquiry: Raids Reveal $78 Million in Questionable Commissions
What Happened?
The Argentine Federal Police (PFA) conducted raids at the Argentine Football Association (AFA) headquarters as part of an investigation into alleged financial irregularities and money laundering. The operation, ordered by federal judge luis Armella of Lomas de Zamora, centered around a contract with TourProdEnter LLC, a Florida-based company linked to Javier Faroni.
Investigators seized a contract granting TourProdEnter LLC exclusive rights to manage AFA’s international collections and payments. The contract stipulates a 30% commission on all incoming commercial revenue and an additional 10% on money outflows related to logistics, such as team travel and lodging.
The Contract Details: A Deep Dive
signed on December 9, 2021, by AFA President Claudio “Chiqui” Tapia and Pablo Toviggino, the agreement designated TourProdEnter LLC as the exclusive agent for handling AFA’s financial transactions outside of Argentina.Analysis of records indicates the company processed over $260 million for the AFA as late 2021, generating estimated fees of at least $78 million.
| Revenue Stream | Commission rate | Estimated Commission (as 2021) |
|---|---|---|
| Incoming Commercial Revenue | 30% | $78 million (based on $260 million total revenue) |
| Outbound Logistics (Travel, Accommodation) | 10% | Amount dependent on total logistics spending – currently under investigation |
The 10% commission on logistics expenses, covering transfers and accommodations for the National Team, is a key area of scrutiny. Authorities are investigating whether this arrangement facilitated the diversion of legitimate AFA funds into a complex financial structure.
Who is involved?
- Claudio “Chiqui” Tapia: President of the Argentine Football Association (AFA), signatory to the contract.
- Pablo Toviggino: AFA official, signatory to the contract.
- Javier Faroni: Linked to TourProdEnter LLC, the company awarded the exclusive contract.
- TourProdEnter LLC: Florida-based company receiving commissions for managing AFA’s international finances.
- Luis Armella: Federal Judge of Lomas de Zamora, overseeing the investigation.
What Does This Mean?
the investigation raises serious questions about transparency and financial oversight within the AFA. The substantial commissions paid to TourProdEnter LLC, particularly the 10% on logistics, are drawing intense scrutiny. The core concern is whether these fees were justified and whether any funds were improperly diverted.