Riches and Debts in Brazilian Soccer

In 2022, Brazilian football clubs reached their highest net debt in a decade at R$10.44 billion ($2.02 billion).

They reduced this amount to R$9.53 billion ($1.84 billion) last year, according to Ernst & Young.

This data includes the 31 top teams from the 2023 Brazilian Serie A and B Championships.

Fortaleza led the reduction, cutting its dues by 80% to R$6.6 million ($1.28 million) by the end of 2023.

Flamengo and Atlético-MG also saw significant debt reductions of 75% and 48%, respectively.

Five clubs accounted for 44% of the total net debt in 2023:

• Botafogo (R$1.03 billion, $199 million),
• Corinthians (R$886 million, $171 million),
• Atlético-MG (R$824 million, $159 million),
• Vasco (R$749 million, $145 million), and
• São Paulo (R$667 million, $129 million).

Understanding the Debt

In 2023, Corinthians had the highest tax arrears at R$602 million ($116 million). Botafogo faced significant loan debt at R$429 million ($83 million).

Despite their high dues, these clubs maintain manageable debt-to-revenue ratios.

For example, Corinthians had a ratio of 0.95. São Paulo had a ratio of 0.98, and Palmeiras 0.58.

The clubs with the highest debt-to-revenue ratios are

• Coritiba (2.06),
• Vasco (2.06),
• Atlético-MG (1.88),
• Botafogo (1.81), and
• Bahia (1.76).

Revenue Insights

Total revenues of the analyzed clubs increased by 123% over ten years. They reached R$11.1 billion ($2.15 billion) in 2023, a 32% increase from 2022.

Broadcasting rights were the primary revenue source, accounting for 45% of total income.

Flamengo led in revenue for the third consecutive year, achieving a record R$1.37 billion ($265 million) in 2023.

Corinthians followed with R$937 million ($181 million). Palmeiras had R$927 million ($179 million).

Fluminense, the 2023 champions of the Campeonato Carioca and Copa Libertadores, saw a 100% increase in revenue. They reached R$694 million ($134 million).

Notable Financial Figures of Brazilian Clubs

• Flamengo: Revenue: R$1.374 billion ($266 million), Net Debt: R$63 million ($12 million), Debt-to-Revenue Ratio: 0.05
• Corinthians: Revenue: R$937 million ($181 million), Net Debt: R$886 million ($171 million), Debt-to-Revenue Ratio: 0.95
• Palmeiras: Revenue: R$927 million ($179 million), Net Debt: R$537 million ($104 million), Debt-to-Revenue Ratio: 0.58
• Athletico: Revenue: R$721 million ($139 million), Net Debt: N/A
• Fluminense: Revenue: R$694 million ($134 million), Net Debt: R$597 million ($115 million), Debt-to-Revenue Ratio: 0.86
• São Paulo: Revenue: R$681 million ($132 million), Net Debt: R$667 million ($129 million), Debt-to-Revenue Ratio: 0.98
• Internacional: Revenue: R$635 million ($123 million), Net Debt: R$519 million ($100 million), Debt-to-Revenue Ratio: 0.82
• Botafogo: Revenue: R$569 million ($110 million), Net Debt: R$1.032 billion ($199 million), Debt-to-Revenue Ratio: 1.81
• Red Bull Bragantino: Revenue: R$488 million ($94 million), Net Debt: R$408 million ($79 million), Debt-to-Revenue Ratio: 0.84
• Grêmio: Revenue: R$480 million ($93 million), Net Debt: R$526 million ($102 million), Debt-to-Revenue Ratio: 1.10
• Atlético-MG: Revenue: R$439 million ($85 million), Net Debt: R$824 million ($159 million), Debt-to-Revenue Ratio: 1.88
• Santos: Revenue: R$424 million ($82 million), Net Debt: R$606 million ($117 million), Debt-to-Revenue Ratio: 1.43
• Fortaleza: Revenue: R$382 million ($74 million), Net Debt: R$6.6 million ($1.28 million), Debt-to-Revenue Ratio: 0.02
• Vasco: Revenue: R$364 million ($70 million), Net Debt: R$749 million ($145 million), Debt-to-Revenue Ratio: 2.06
• Bahia: Revenue: R$240 million ($46 million), Net Debt: R$422 million ($82 million), Debt-to-Revenue Ratio: 1.76

Conclusion

These financial figures highlight the diverse fiscal health of Brazilian football clubs. Understanding their financial dynamics is crucial for fans and investors alike.