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More than record revenue for Brazilian football, 2019 gave Flamengo the peak of distancing itself from Rio’s three rivals. While Rubro-Negro only raised R $ 950 million last year, Botafogo, Fluminense and Vasco, together, totaled R $ 669 million. For the first time in the last ten years, there was such a large collection gap between them, as the EY Consultancy survey points out.
– In 2012, Flamengo had a turnover of R $ 212 million, and the sum of the three was R $ 420 million. That is, the others together earned twice as much as Flamengo. Today, he earns more than the other three and still has a surplus of a third over them, highlights Pedro Daniel, executive director of Sports at EY.
More than reflecting Fla’s success on the field, with the titles of Libertadores and Brasileirão, the scenario that is emptied in 2019 has to be decisive in terms of the fate of each one after the pandemic of the new coronavirus.
Flamengo has been operating positively since 2014 and closed 2019 with a surplus of R $ 63 million. The other three were in deficit. Botafogo was the largest: R $ 21 million, being the second consecutive year that the alvinegro closed in red.
Vasco’s deficit was R $ 5 million. In the club’s diagnosis, the lack of significant player sales hindered. The only transaction recorded was from Evander to Midtjylland (DIN), for R $ 10.7 million. Fluminense reached the fourth consecutive year with no surplus, with a negative result of $ 9.3 million.
Adding up the last ten years, Flamengo had an accumulated operating result of R $ 505 million. Besides him, only Vasco closed the same period with a positive balance: R $ 135 million. For Fluminense, the balance sheets as of 2010 together registered a deficit in the operating result of R $ 152 million. In Botafogo, the hole is deeper: R $ 379 million negative.
For such a successful collection, Flamengo used more advantageous agreements regarding television rights. In ten years, there was a 642% jump. In 2019 alone, the club won triple Botafogo in this article. This account includes participation fees in tournaments, some paid in foreign currency, such as Libertadores (R $ 85 million) and the Club World Cup. With the devaluation of the real, this makes a difference compared to previous years.
Flamengo also made very profitable transfers. Vinicius Junior, for 45 million euros (Real Madrid), and Paquetá, for 35 million euros (Milan), boosted the accounts for 2017 and 2019. Again, the exchange rate factor appears: both launched at R $ 150 millions. Vasco even managed, in 2018, R $ 76 million with the sale of Paulinho to Bayer Leverkusen, but the crisis in the club reduced the negotiating power.
The balance of commercial income also widens the gap between Flamengo and its rivals. In 2019, rubro-negro earned R $ 93 million in this regard. Vasco raised R $ 16 million, while Fluminense and Botafogo reached R $ 9 million.
– Flamengo managed to take off at a time of economic growth before the World Cup and, later, remained. The other clubs did not take advantage of the stage to take advantage. Now, with a period of recession, with less liquidity in the market, they were also affected – underlines Gustavo Hazan, senior manager of Sports at EY, highlighting the good red-black performance also in game revenues, as the team arrived far in the Contests played.
Change in debt
As significant as the balance between income and expenses is the way each club handles debt throughout the decade. Flamengo managed to reverse the logic, going from the top to the last place among the great players of Rio. The downward bias occurred from 2013. In 2017, it returned to the 2010 level, in absolute numbers, without taking inflation into account. In the past two years, with more investment in players, there has been an increase in spending.
Botafogo, on the other hand, has established itself as a debt leader and appears to be far from losing this awkward state. Maintaining the current volume of annual revenue generation, it would take the club almost six years to pay off the debt, in a hypothetical and unreal scenario of total absence of expenses.
Alvinegros’ plans to annihilate liabilities depend on the success of the migration to the club-company model, something that was complicated by the arrival of the pandemic.
