West Ham get Lucas Paqueta update as 'mass sale of players' expected
West Ham have received an update on the situation surrounding Flamengo's payment for Lucas Paqueta.
The Brazilian club bought the 29-year-old last January for a fee of £35.5million, but it was in instalments.
The initial figure is believed to be around £13m, with the rest due in annual payments.
The January 2027 payment is under threat, after the Brazilian government chose to ban betting sites and online casinos.
The Scarlet and Black will reportedly lose approximately £57.84m from their budget, as a deal with gambling firm Betano makes up £38.83m of their finances.
They now face a nervous wait as the proposal is ratified by congress, as it is only a provisional measure at the moment.
What is the new update on the Lucas Paqueta payment issue?
The new law requires all betting sites to shut down by 6 October, and has the potential to devastate Brazilian football.
A report from UOL, citing journalist Rodrigo Mattos, claims that clubs fear a "mass sale of players"
He explained that the contract with Betano is on hold for now, while the issue is discussed in congress.
Mattos said: "What happened was this: there was a meeting between Flamengo and Betano, and they decided to keep the contract on hold, that's what they explained to me.
"They will extend it until there is a definition of the Provisional Measure on betting, which still needs to go to Congress.
"In other words, Flamengo will spend these four months waiting for a decision from Congress. For this year there is no financial issue, as you said, it has already been received.
"Now, the problem is for next year, the main concern is this issue of federative rights, the contract is on hold, this is not exclusive to Flamengo.
"Yesterday I spoke with several clubs and they are all in a similar situation, what will happen is a mass sale of players if there is no reversal of the betting issue."
He stated that a payment of £17.38m is due in January, when everything will be decided, part of which would be spent on paying the Paqueta instalment.
Mattos said: "In January, he has to pay West Ham, Atletico Madrid (in the case of Samuel Lino), Milan (Royal), and Al Saad (Plata).
"And in July, he has to pay River Plate and Antwerp (for those young players who arrived, Joaquín Freitas and Valencia).
"So the main concern is related to the issue of receiving the expected payment for the transfer rights, because there’s a cash flow, Betano has a forecast of a very large payment in January, 120 million, so the club was counting on that cash flow.”
What happens next for West Ham?
Nothing has really changed for the Hammers, they just have to wait to see what happens in Brazil.
If the betting ban is overturned, then it is grand, and the Irons do not have to worry about not getting their money
If it stays in place, the the eight-time Serie A champions will be cash-strapped and may have to come to an alternative agreement with the E20 side.
The East Londoners could probably take it to court, but without knowing how Brazilian law works, it is hard to know what would happen there.
If the Rio De Janiero-based side do not have the money, that avenue may not have the desired success.
Perhaps, Nuno Espirito Santo's side will have to wait until the mass sale of players has happened to get the money that they are owed.
The situation will likely not be resolved for the next few months, so it will be a waiting game for Daniel Kretinsky and the rest of the Hammers hierarchy.