Gremio agree landmark stadium ‘swap’ – but key issues remain

Gremio are closing in on agreement to take full ownership of Arena do Gremio in Porto Allegre, with the site of the former Estadio Olimpico set to be swapped as part of the deal.

Gremio have signed a property exchange agreement that will see the club become the owner of Arena do Gremio, while the former Estadio Olimpico site will be transferred to private companies OAS 26 and Karagounis.

The final decision is yet to be made, however, with the club's deliberative council set to put the agreement to vote later this month on November 16.

Key issues remain before stadium ‘swap'

Documents concerning the property swap were signed on October 30, with Gremio set to become the owner of Arena do Gremio and the former Estadio Olimpico site being transferred to OAS 26 and Karagounis.

The transaction is linked to the original financing model for the construction of the new stadium, with Estadio Olimpico included in the settlement for the development of Arena do Gremio, of which construction began in 2010 and eventually opened in 2012.

It has also been agreed that OAS 26 will be responsible for completing the infrastructure works around Arena do Gremio that are yet to be finished, as this was part of the obligations set out in the original investment agreement.

However, not all matters regarding the swap have been settled, with separate negotiations needed on issues including Gremio's share of revenue from the future sale of developments on the former stadium site, the method and timing of its demolition and the settlement of outstanding tax liabilities.

Despite those issues still to be settled, the separate parties have agreed that these unresolved matters will not prevent the property swap from going ahead.

The change of ownership would mark another step towards putting the arrangements surrounding Arena do Gremio in order.

Gremio, with the help of businessman Marcelo Marques, have already taken control of the stadium's management after paying around £6.7m to bring forward the termination of the previous operator's right to run the venue.

All of the debt surrounding the stadium was also extinguished, with Gremio acquiring a third of the debt for approximately £2.7m before Marques contributed £10.8m to purchase the remaining two thirds of the debt from company Revee.

However, before any further progress can be made on the swap, the club's council will have to approve the deal when they meet in the extraordinary meeting on November 16.

FGG Says: Positive news

Gremio appear to be moving in the right direction to secure the ownership of Arena do Gremio, which will mark a significant step forward for the club after years of arrangements to make this possible.