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.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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