US$42 million AFA income moved to Florida shell companies, Argentine outlet reports

The Argentine Football Association (AFA) is in hot water over its finances again, after investigative journalists at La Nación newspaper reported that US$42 million of its income had been moved to shell companies in Florida. The outlet claims to have reviewed confidential banking records which show how a U.S. company that collects AFA revenues around the world transferred the sum to four Florida-based companies that have no employees or declared commercial activity. According to La Nación, AFA president Claudio “Chiqui” Tapia and his right hand man, treasurer Pablo Toviggino are not mentioned in any of the files. However, Toviggino’s wife appears as the recipient of part of the funds, as does a company that once listed the AFA treasurer and his brothers as stockholders. TourProdEnter LLC, the company the journalists investigated, was incorporated in Florida in August 2021. Just four months later it became the AFA’s “exclusive commercial agent for foreign markets.” Over the past four years, it has handled AFA revenues of over US$260 million. The contract was included in an AFA Bulletin in December 9, 2021. It granted the company the job of collecting income for the AFA abroad, issuing payments to settle its obligations outside Argentina, and remitting any revenue to Argentine football’s governing body. The income comes mainly from the Argentine national team’s sponsors, television broadcasting rights, and fees for friendly matches. The AFA has been criticized by fans and journalists alike for a recent string of men’s national team friendlies against weaker rivals, which many fear offer poor World Cup preparation opportunities for head coach Lionel Scaloni. AFA linked to money laundering investigations AFA has been in hot water over its alleged involvement with a company being investigated for money laundering since the start of December.  Earlier this month, Argentine police raided the offices, stadiums and training centers of 17 professional football clubs and financial firm Sur Finanzas as part of a money laundering investigation.  The financial institution has sponsored teams such as Racing, Platense, Banfield, and Barracas Central — Tapia’s club — among others, as well as the Argentine first division championship. Local media have speculated that the company could have links to Tapia on account of his ties to the firm’s owner, Ariel Vallejo, who has not hidden that he is close to the AFA boss.  The case arose after Argentina’s tax agency, ARCA, detected AR$818 billion (US$553 million) on Sur Finanzas’ books belonging to shell companies and individuals that did not have the financial capacity to justify their transactions. It also found a 2 million-euro loan to football club Banfield that was allegedly incorporated into the club’s assets and not repaid. According to reports, clubs have used the company to channel their funds.  On December 16, Senator Patricia Bullrich reported Tapia, and AFA treasurer, Pablo Toviggino, to the ethics committee of CONMEBOL, South American football’s governing body. The Argentine Football Association (AFA) saidit wouldn’t “give [the government] the right” to intervene in football, in a 2,500-word statement. Tapia is also under fire in a case filed against Luciano Pantano and Ana Lucía Conte, who stand accused of money laundering. The Argentine authorities suspect they are intermediaries for Tapia’s alleged ownership of a large country house in Pilar.  According to the complaint filed by Coalición Cívica leaders Elisa Carrió, Juan Facundo del Gaiso, and Matías Yofe, the house includes “collectible cars, a farm with Arabian and thoroughbred racehorses, a horse training track, a heliport, and multiple sports facilities.”