Brazilian club finances, victim of Corona

The number of Brazilian players moving abroad annually decreased by 62 percent during this year’s summer European transfers, according to an AFP census based on data from the specialized website “Transfermarkt.” From June 1 to September 8 last year, 194 players left their Brazilian clubs to play abroad, either on loan or with permanent transfer, according to the transfer website. But this year, the number has reached just 74, and this is what ESPN sportscaster Gustavo Hoffman said, “There is a drop in the transfer market. The clubs try not to spend too much because everyone’s financial situation is difficult.

Brazil ranks first in the world in terms of the number of players playing outside the country (2,742), ahead of rivals Argentina (2,330) and France (1740), according to a report published in May by the International Center for Studies Sports from Switzerland. In the country of Pelé, Ronaldo and Neymar, transfers typically generate around a quarter of the club’s revenue, second only to TV rights in terms of revenue.
But the number of transfers is not the only thing whose number has decreased. Amid the financial uncertainty imposed by the Coronavirus outbreak, the amount of money spent to close deals has also decreased. Last year, the three largest international transfers paid 77 million euros (91.4 million dollars) to Brazilian clubs, including a 45 million euro deal between Real Madrid and Santos, which left the Real Madrid club. young extreme Rodrygo. This year, the first three transfers brought in less than 62 million euros for Brazilian clubs.
In the biggest deal, Portugal’s Benfica paid the Gremio € 28 million to seize the services of international striker Everton. The same club also paid 18 million euros to sign offensive midfielder Pedrinho from Corinthians. “If we were in another (time) year, Benfica might have to pay a higher sum (for Everton),” Hoffman said. The recession comes at the worst possible time for Brazilian clubs that already suffered from a lot of debt, and are now also suffering the economic repercussions of Corona in the country that has the second highest death toll in the world, after the United States. “The financial vulnerability of clubs has increased due to the epidemic,” said Rodrigo Capello, a journalist specializing in the economics of sport for the Brazilian network “Globo”.

Brazil ranks first in the world for the number of players playing outside the country

The “Covid-19” outbreak led Brazilian authorities to cancel all soccer matches for nearly four months, affecting sponsorship contracts, television revenue, and match tickets.
The economic crisis made the issue of international transfers of Brazilian players more important than before, because it caused the Brazilian real to fall against the dollar and the euro.
This means that the value of money coming from abroad has increased for Brazilian clubs, at a time when they struggle to cover their expenses with other income that has been reduced in size by the repercussions of Corona.
But European clubs are tightening their belts, that is, they are skimping on spending because they are also dealing with the economic uncertainty imposed by the pandemic, according to player agent Edgardo Aguilar.
The value of transfers made by his company, “Soccer Stars Group”, has decreased by 70 percent this year. This crisis is not limited to Brazil, but affects the neighboring countries of South America.
In normal times, Brazil is also a major importer of soccer talent. This year, however, the clubs have drastically reduced their contracts with players from countries such as Uruguay, Peru and Colombia. The Colombian agent, Carlos Calero of the company “World Sports Management”, indicated that the Brazilian clubs were forced to “settle for negotiating (hiring) with players that were offered (for sale) in the Brazilian market.” Calero used to mediate an average of three deals per season to send players from other parts of South America to Brazilian clubs, but this year he hasn’t made any deals so far.

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