Welcome back to the Brazil Sports newsletter! This week, Ronaldinho Gaucho’s latest advertising foray which has him in hot water with the courts. Corinthians dumped out of the Copa Libertadores in a night full of surprises and coincidences. That and much more. Enjoy your read!
Ronaldinho’s pyramid schemes
Twice World Player of the Year Ronaldinho Gaúcho has been made a defendant in a civil class action demanding he pay BRL 300 million in damages for his involvement with the company 18kRonaldinho, which sold “luxury experiences” including beach holidays, watches and cars in a textbook pyramid scheme.
Fingers in all the pies. Since his effective retirement from football in 2015, Ronaldinho has been involved in a seemingly neverending list of half-cocked marketing ventures. From grand exhibition matches all over the world, to mobile phone games and even a brief music career, Ronaldinho will apparently get involved in anything if the price is right.
18kRonaldinho. The company in question worked by attracting clients with initial investments of BRL 999, and giving them four watches to sell, valued at BRL 600 each. The structure then followed the classic trappings of pyramid selling, with vendors receiving bonuses based on the number of other people they are able to bring into the company. Over time, as the members “climb” the pyramid, they gain the right to sell other products and the chance to win a number of prizes, including beach holidays and expensive cars.
Damage. Members didn’t receive direct salaries or profits from the company, instead holding accounts with points that could be exchanged for Bitcoin. When public prosecutors identified that 18kRonaldinho showed signs of pyramid selling, the company’s assets were frozen,...
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