enhanced red flag report

1 DOW JONES SPORTS INTELLIGENCE

SPORTS INTELLIGENCE

Enhanced Red Flag Report


SPORTS INTELLIGENCE

DJSI Executive Summary Checks Grids

KEY ■ No results found (or neutral/positive only if accompanied by note to pg reference in report)■ Adverse results found ■ Possible results found

Red Flag Issues are any references reporting the subject’s involvement in issues such as bribery, corruption, fraud, tax evasion, money laundering, links to organised crime or terrorism.

Category Two

Watchlist Check (DJ R&C Database Checks for PEPS etc)

Government Relations

Adverse Regulatory Issues

Judgement/Lien Filings

Civil Litigation

Noteworthy Issues P14 Threat to quit football and questions over agent’s conduct

Sanctions Lists (DJ R&C Database Checks)

NOTE: The Executive Summary narrative and the Report in Full narrative that follows will be written in order of the Category One and Category Two findings.

For further detail on the grids, how the ‘Hit Rating’ is calculated, what is in each category checks segment and other definitions see the Appendix at the end of this report.

HIT RATING

LOW

Category One

Red Flag Issues

Bankruptcy Filings

Environment

HIT RATING

HIGH

HIT RATING

HIGH

Human Rights P11-13 Photographed with firearms, explicit images and domestic violence claims

Criminal Litigation P11-13 Domestic violence and criminal negligence lawsuits

P13 Damages lawsuit


SPORTS INTELLIGENCE

on social media platforms and these have been identified.

However the limited nature of the social media brief for this report means only a basic review has been conducted on all of the subject’s social media activity and wider coverage. DJSI would recommend a deeper social media audit which can be conducted at the client’s request.

Three further areas of possible risk that are common to most football player reports is Third Party Ownership(TPO)/economic rights, the role of their agent and any corporate affiliations the player or agent has.

TPO has been prevalent in South America for many years but it has now been banned by FIFA and is subject to possibly severe punitive sanctions. It is often referred to as football’s equivalent of “slavery” because individuals or companies “own” the rights to sell a player rather than his/her club.

There is a reference to the economic rights of Centurión in the 2015 transfer to Sao Paolo. Further research may establish more detail on this. However the client should seek assurances or proof of ownership on this issue if it has entered into, or is considering, a relationship with the subject.

Centurión also owns a Brazilian company which appears to be a sports management agency. Many players have their own companies in order to “house” their image rights which are often used to receive income in a tax efficient manner.

However there have been numerous high profile instances where such companies have been used for tax evasion, normally in relation to offshore companies. Centurión does not appear to be linked to any companies in the so-called “Panama Papers” database as research was conducted on this.

Further research on his company may establish more detail on its activity.

Lastly Centurión’s agent, Alejandro Mazzoni, has reportedly been implicated in a football tax scandal in Italy. It is unclear if his relationship with Centurión is part of this investigation.

Further research on this may establish Centurión’s possible exposure in this investigation.

Sports Intelligence:As part of the Dow Jones Sports Intelligence service for key strategic clients we provide commentary, insight and context,

which we call Sports Intelligence (SI).

SI helps clients contextualise and interpret results of searches and assists in frameworking how they should be presented to key stakeholders, be those internal or external.

This is based on our team’s expertise in sport, big corporates, government and the wider due diligence industry.

Therefore potential areas of risk are split into Category One and Category Two with Category One representing a higher risk.

Quantifying the results of a DJSI report and providing context and insight are always subjective as ultimately the views of the client are dependent on its own tolerance for risk and what it identifies as the biggest potential issues for its business.

Most stakeholders understand that the types of issues being researched can potentially expose them to risk. They are used to this across a range of their business relationships. What is important to them is that by commissioning DJSI, they know that they are taking the necessary steps to identify and manage those risks.

From DJSI’s experience of football, the number of potential reputational incidents and issues surrounding the subject are at the high end.

The subject returns adverse findings for the Category One checks for Criminal Litigation in relation to his former girlfriend and under Human Rights in relation to, Ethical Approach and Excluded Sectors, (Weapons and Pornography) for what could be termed questionable behaviour.

Adverse findings were returned in Category Two for Civil Litigation, Adverse Regulatory Issues and Noteworthy Issues, with the latter relating, in particular, to his agent.

With regard to the allegations made by his former girlfriend it was not possible to search court records directly as online search is only available for certain court. Therefore research was unable to locate the primary source court records for this case.

A number of incidents relate to information that has been posted


SPORTS INTELLIGENCE

Executive SummaryCourt hears claims of violence against girlfriendThe subject was reportedly issued with a restraining order following allegations heard in court of violence against his former girlfriend.

These included that he tried to strangle his girlfriend, broke two of her teeth and left her with black eyes after she discovered that he had been texting another woman.

His girlfriend said that the player’s behaviour was caused by alcohol abuse. In response, the subjects’s lawyer denied the claims and said that his client would be suing the girlfriend for slander.● Note: This entry refers to Category One findings for Criminal Litigation issues - 4

Player pictured with firearms on multiple occasionsThe subject has been pictured on a number of occasions brandishing firearms. In the most recent photograph, he was pictured in a pair of swimming trunks holding a pump action shotgun.

Other images include one when he was 16 years old in which he was holding a pistol. Pictures published online suggest that the subject has a tattoos of a firearms on his legs and arms.● Note: This entry refers to Category One findings for Human Rights > Excluded Sectors > Weapons – page 6

Naked images and suggestive text messagesImages of the subject posing naked as well as sexual text messages between the player and a woman have been published on social media.● Note: This entry refers to Category One findings for Human Rights > Excluded Sectors > Pornography – page 6

For further information see page - 11


For further information see pages - 11-12


Charged with criminal negligence over car crashThe subject allegedly left the scene of a car accident in which four people were injured.

Media reports suggest that he was charged with criminal negligence while some alleged that he left the scene to avoid being breathalysed.● Note: This entry refers to Category One findings for Human Rights > Ethical Approach > General Code of Ethics/Conduct – page 6

Allegations of fighting and other violenceMedia reports have raised question marks over the subject’s behaviour and alcohol intake following numerous well documented allegations of fighting and violence including the leak of a video which appeared to show the player “out of control” at a service station.● Note: This entry refers to Category One findings for Human Rights > Ethical Approach > General Code of Ethics/Conduct – page 6

Driving licence suspended for traffic violationThe subject had his driving licence suspended in March 2015 by the State Traffic Department for an unspecified traffic violation.● Note: This entry refers to Category Two findings for Noteworthy Issues – page 5

Agent ‘involved in investigation into tax fraud’In 2014, Italian authorities raided a number of football clubs in the country as part of an investigation into tax fraud.

Prosecutors identified the subject’s agent as being involved in the investigation. ● Note: This entry refers to Category Two findings for Noteworthy Issues – page 5

For further information see pages - 12-13




SPORTS INTELLIGENCE

PERSONAL BEHAVIOURRestraining order after claims of violence against girlfriendThe subject’s former girlfriend reportedly won a restraining order against the player after he allegedly tried to strangle her and hit her, leaving her with black eyes and broken teeth.

The girlfriend filed a domestic violence lawsuit against the subject which was heard in May 2017. The court heard claims by the girlfriend that the first violence occurred in October 2016 at the couple’s apartment.

The girlfriend said in interviews that she had discovered the subject had been texting another woman and that when challenged, he hit her and she suffered two black eyes.

In July 2017 after the couple had split up, the girlfriend claimed that the subject turned up drunk at her house and she asked him to leave. He then allegedly strangled her and broke two of her teeth.

The girlfriend said that she filed the lawsuit one week after the attack, when she started receiving threatening messages from the subject and his sister. When asked about the subject’s violent behaviour, she claimed that it was due to alcohol abuse.

The subject individual’s lawyer denied the accusations saying that it had only been a “minor” dispute and said that his client would be suing the girldfriend for slander. Reports indicate that the

court issued a restraining order against the subject and his family, prohibiting them from going within 500 metres of the girlfriend.

During a press conference, the subject’s manager said that he did not support violence and that he would talk to the subject about the matter. However, the club did not sanction the subject.

It was not possible to search the court records directly and research was unable to locate the court records for this case.

No additional information was identified regarding the outcome of the case.● References: 1, 2, 3, 4 ● Note: This full entry refers to Category One findings for Criminal Litigation – page 4

Photograph shows player brandishing shotgunA photograph of the subject holding a shotgun which was used as evidence in the domestic violence lawsuit was leaked and published on social media by a journalist in August 2017.

Three days after the leak, the subject posted a threatening message on social media containing an image of a gun.

According to the sources, the leaked picture was not the first image seen of the subject holding a firearm. The first one was made public when the subject was 17 years old and a member of the

SHE CLAIMED THAT HE TURNED UP DRUNK AT

HER HOUSE AND WHEN SHE ASKED HIM TO LEAVE, HE THEN ALLEGEDLY STRANGLED HER AND BROKE TWO OF HER TEETH


SPORTS INTELLIGENCE

Link: http://www.sport.es/es/noticias//-gana-caso-por-publicidad-94885859899ckdiie-masia-mcm-6143853Date: 03-Jul-2017

Reference 140Source: ESPN FCLink: http://www.espnfc.com//story/3073358/4837-=w99e9eixiww9-74839009%-ban-i-will-s88s99q899-75555%%%%-go-hdne887765-Date: 02-Mar-2017

nueva-filtracion-plena-junta-directiva-del-49745914Date: 14-Mar-2016

Reference 136Source: EPSNLink: http://www.espn.co.uk/football//story/2985598/-qatar-airways-377843773849sponsorship-deal-approved-in-vote Date: 31-Oct-2016

Reference 137Source: Sports Business Daily

Reference 141Source: Bleacher ReportLink: http://bleacherreport.com/articles/2110655-8488e8e555%%%%-punishment-upheld-by-fifa-following-appealDate: 26-Mar-2017

Reference 142http://www.skysports.com/football/news/11833/11068968/fc--demand-talks-between-097&^^%%%%%-and-spain-

Link: http://www.sportsbusinessdaily.com/Global/Issues/2015/03/02/Franchises/-MCM.aspxDate: 02-Mar-2015

Reference 138Source: GrupLink: https://grup14.com/story/judge-rules-in-favor-of-in-345-caseDate: 02-May-2015

Reference 139Source: Sport

APPENDIX

enhanced red flag report

Documents