Palmeiras faces court scrutiny over Allan’s €40m Manchester City sale
São Paulo Justice has ordered Palmeiras to provide full clarification on the sale of forward Allan to Manchester City, a transaction valued at roughly R$ 240 million (about €40 million). The club is not named as a defendant but must disclose contracts and payments linked to the deal.
Transfer details and financial split
The transfer was finalised in August and is counted among the biggest sales in Palmeiras’ history. The agreement was struck for €40 million, which the exchange rate at the time translated to approximately R$ 240 million, comprising fixed fees and performance bonuses.
Palmeiras is entitled to 90 percent of the net amount, while Figueirense retains a 10 percent share plus a contractual bonus of R$ 750 000. The precise destination of Figueirense’s portion remains contested, prompting the court‑ordered investigation.
Court‑ordered disclosure and creditor dispute
The São Paulo court gave Palmeiras ten days to submit documents detailing the contracts with Figueirense, the sums received from Manchester City and any retained payments. It also seeks information on contractual amendments and payment conditions.
Disputes have arisen among Figueirense’s creditors. M&F Investimentos e Participações claims a debt of the Santa Catarina club and has secured a judicial block on credits linked to Allan’s transfer, keeping the seized amount frozen until a payment order is issued.
Athletico‑PR also asserts a claim, arguing it received rights on credits related to the player as security for a Figueirense debt. Labour creditors have joined the fight, disputing the allocation of funds and demanding clarification of entitlement proportions.
Palmeiras’ response and wider implications
Palmeiras stated it will comply with the court’s demand as soon as it is formally notified and will take steps to preserve the confidentiality of the contracts. Until the dispute is resolved, the blocked funds cannot be transferred freely to any creditor.
Separately, CONMEBOL has warned of a possible sanction against Palmeiras over the case of Alexander Barboza, Agustín Giay and Mauricio Andreas Pereira. The story was published Por Letícia Gerheim on the Licenciado de Gávea News platform, with the site’s Notícias section highlighting the development.