Argentine football club San Lorenzo faces potential closure within days if it fails to settle a $4.7 million debt originating from a misdirected player transfer payment. The storied club has until October 19 to make the payment, with no possibility of appeal against the court ruling.
The financial crisis stems from a 2020 transfer involving forward Adolfo Gaich, who was sold to Russian club CSKA Moscow. To receive the transfer funds early, San Lorenzo took out a loan from Swiss fund AIS Investment.
A key error occurred when CSKA Moscow directly paid San Lorenzo for the player, rather than transferring the money to the Swiss fund as per the loan agreement. It was only discovered in 2024 that the payment had not reached the correct recipient.
Legal proceedings followed, resulting in a court decision against San Lorenzo. The ruling mandates the club to pay $3.9 million, representing the original player transfer fee, along with accrued interest and adjustments. This brings the total due to approximately $4.7 million.