Flamengo achieved an important feat in its structure. In April, the club paid the last installment of the loan from Banco BRB, in the amount of R$23 million. With this payment, the club no longer has bank debts. Related Flamengo With David Luiz and Rodrigo Caio, Flamengo trains for a duel against Athletico-PR for the Brasileirão Flamengo 05/05/2023 Off the field Diego Ribas, ex-Flamengo, will be master of ceremonies during a sporting event in Rio Outside the Field 05/ 05/2023 Fora de Campo Flamengo: Gabigol launches R$ 1,499 kit to celebrate historic feat in Libertadores Fora de Champ 05/05/2023 The information, highlighted by "Panorama Esportivo", from "O Globo", was published without fanfare in Rubro-Negro's latest statement. In the balance sheet note, we find the information: “The amount presented as balance on 03/31/2023 was paid in full on April 23rd, which means that the club has no further obligations”. President of Flamengo between 2013 and 2018, Eduardo Bandeira de Mello told LANCE! what the struggle was like to get the club back on track financially. - This is something we started implementing ten years ago. We count on the collaboration of the fans, who understood this new moment and embraced our project and we started this challenge. This zero debt milestone in banks is a very significant achievement. The banks' debt was as difficult to pay as what Flamengo achieved under my leadership, namely the regularization of tax and labor debts - he said. + Flamengo misses the opportunity to touch the leader, but will have two games at home; watch the preview of Group A of the Libertadores Bandeira de Mello revealed that the bank debt problems were quite difficult when he took over as president of the club. - It was a relevant number and the only reason it wasn't higher was because it wasn't given credit. Since the problem could not be resolved, it was diverted. It was a means of financing, but it did not allow taxes to be collected and the cost of debt became much higher. Flamengo had no financial credibility, he said. The former coach told how he worked to pay off debts and change the club's outlook. - We decrease over time. There was a time when we had to increase the debt, because we had to resolve outstanding issues with the Treasury. The opposition also accused us of exchanging public debt for private debt. But thanks to this momentary increase, we adjusted the club’s accounts – he stressed. Currently a federal deputy for PSB-RJ, Bandeira de Mello is optimistic about how Flamengo continues to strengthen financially under the leadership of Rodolfo Landim. - From what I see in the statements, there is continuity in the financial effort and its evolution. Since the end of 2018, we have offered future leaders a very comfortable situation. We left part of the gloves from the contract with Globo for the next management and the value of the sale of Lucas Paquetá to Flamengo. The consequence is an improvement in financial conditions, linked to the professionalization of clubs, he highlighted. “WHEN YOU CONTROL BANK DEBT, YOU LEAVE MORE MONEY IN CASH” Flamengo is champion of the 2022 Copa Libertadores (Luis Acosta/AFP) The way Rubro-Negro has balanced its finances is seen as crucial for the club to extract value. Sports management and marketing consultant, Amir Somoggi declared how essential this new step was for Flamengo. - It's really impressive. Not only the bank debt, but also the club's overall debt fell to the lowest level in history, with the highest revenue in history. Normally you see clubs like Atlético-MG and Palmeiras where revenue increases and debt also increases. Debt often gets out of control, as was the case with the Atlético club. Flamengo has this very extreme financial control – he emphasized. Next, Somoggi explained how resolving old banking issues can be decisive for a club to become even stronger. - From the moment you no longer have so many bank debts, you have cash left over. Bank debt generates a financial charge, which is the interest on the debt. The club will have to withdraw from its football, social, marketing or other activities if it does not have the necessary resources to pay the bank debt. Otherwise, it's a snowball, as happens with those who enter into an overdraft and don't pay. It is very difficult for a club to resolve its banking problems, given the very high interest rates that Brazil is experiencing today. Currently, at least 2% or 3% per month is loaned to the club. Under these conditions, it is very interesting that the administration tries to pay off its financial debts. The resources that currently go to banks can also be applied on other fronts, he said. + Most valuable clubs in the world: United leads and Flamengo is the only Brazilian in the top 50. For him, the balance achieved by Flamengo is fundamental, especially given the Brazilian reality. - The big problem is that bank debt finances the football department. As soon as a club reduces its banking exposure, it must reduce its budget. Unless, of course, it significantly increased revenue. Flamengo can because it has a lot of revenue. However, some clubs are reducing their budgets and financially deteriorating their income. The problem is to find a balance between reducing costs and increasing revenue so that your resources can now be used to finance your activity and not to allocate funds to banks. This is the challenge of Brazilian football. Club expenses do not just involve interest expenses. There are also tax updates. Today, updates pay the CDI (Interbank Deposit Certificate), which is very high. It is a situation in which clubs must reduce their banking exposure to achieve this balance, he stressed. EXPERT SEES POSSIBILITY OF ROOM FOR NEW INVESTMENTS The Sports Value partner also notes that the end of bank debt paves the way for Flamengo to invest on other fronts. According to Amir Somoggi, it is possible that projects planned or just on paper will come to fruition. - Flamengo becomes even stronger financially by reducing its bank debt. Without a shadow of a doubt, invest more in marketing, in projects such as content games or in the stadium itself, projects outside of Rio, there are things you can invest in that would previously go to the bank - he said. According to him, clubs must increasingly ensure that their brands can extend to other regions. - Projects such as digital and the concept of “off” fans are very valuable for clubs that have a national dimension, which is how fans from other regions are defined. It is important to extend the gains to the distant fan, who is not there next door. This happens with Barcelona and Real Madrid, which have fans in Thailand and Singapore... - and explains: - Flamengo, Corinthians, Vasco, Fluminense, Botafogo and many other clubs have fans outside their state. There is much greater potential there, because millions of people live far away and no market exploitation is directed at them. Flamengo, for example, has 20 million fans in the Northeast. It would be important to address them too – he stressed. Follow Lance! on G o o g l e News Most read 1 Off the field Vini Jr.'s attitude with Mbappé for Real Madrid draws attention on the web 2 Off the field Brasileirão: see the title chances after Botafogo's draw and Palmeiras' victory 3 Throw! Biz How much did Rayssa Leal earn for winning the SLS stage in Tokyo? 4 Off the field Botafogo fans choose the culprit for the partial defeat: “It's called failure” 5 Flamengo The Flamengo Stadium will have a capacity for 78 thousand people and is inspired by the Europeans; see the images from Lance's Newsletter! Stay up to date on sports and your favorite team with just 1 minute of reading! Subscribe The best in sport in the morning! Article More news Stay up to date with everything! See more Flamengo President of Flamengo will meet this Monday to sell naming rights to the stadium 25/11/2024 - 4:35 pm Flamengo Flamengo makes decision to renew contract with Pulgar 25/11/2024 - 4:07 pm Flamengo Mayor of Rio signs commitment with Flamengo will build stadium 11/25/2024 - 12:19 pm Flamengo Flamengo has a key sequence for the best place in the last three Brazilians 11/25/2024 - 06:00 Flamengo Flamengo and Fluminense have a trial marked by a fight between fans 11/24/2024 - 04:30 Flamengo Brasileirão: see the title chances after Botafogo's draw and Palmeiras' victory 11/23/2024 - 22:33 Flamengo Mauro Cezar provokes Cruzeiro and Diniz fans after defeat: "Thank you" 11/23/2024 - 7:40 pm Flamengo Jorge Jesus, Flamengo's idol, celebrates five years of Libertadores 2019 11/23/2024 - 11:45 am Related Flamengo With David Luiz and Rodrigo Caio, Flamengo trains ahead of the duel against Athletico-PR for the Brasileirão Flamengo 05/05/2023 Off the field Diego Ribas, former Flamengo player Flamengo, will be master of ceremonies at a sporting event in Rio Fora de Campo 05/05/2023 Fora de Campo Flamengo: Gabigol launches R$ 1,499 kit to celebrate historic feat at Libertadores Fora de Campo 05/05/2023Flamengo pays off the last part of the debt and closes a bank loan; See how the club can help.
Flamengo achieved an important feat in its structure. In April, the club paid the last installment of the loan from Banco BRB, in the amount of R$23 million. With this payment, the club no longer has bank debts. Related Flamengo With David Luiz and Rodrigo Caio, Flamengo trains for a duel against Athletico-PR for the Brasileirão Flamengo 05/05/2023 Off the field Diego Ribas, ex-Flamengo, will be master of ceremonies during a sporting event in Rio Outside the Field 05/ 05/2023 Fora de Campo Flamengo: Gabigol launches R$ 1,499 kit to celebrate historic feat in Libertadores Fora de Champ 05/05/2023 The information, highlighted by "Panorama Esportivo", from "O Globo", was published without fanfare in Rubro-Negro's latest statement. In the balance sheet note, we find the information: “The amount presented as balance on 03/31/2023 was paid in full on April 23rd, which means that the club has no further obligations”. President of Flamengo between 2013 and 2018, Eduardo Bandeira de Mello told LANCE! what the struggle was like to get the club back on track financially. - This is something we started implementing ten years ago. We count on the collaboration of the fans, who understood this new moment and embraced our project and we started this challenge. This zero debt milestone in banks is a very significant achievement. The banks' debt was as difficult to pay as what Flamengo achieved under my leadership, namely the regularization of tax and labor debts - he said. + Flamengo misses the opportunity to touch the leader, but will have two games at home; watch the preview of Group A of the Libertadores Bandeira de Mello revealed that the bank debt problems were quite difficult when he took over as president of the club. - It was a relevant number and the only reason it wasn't higher was because it wasn't given credit. Since the problem could not be resolved, it was diverted. It was a means of financing, but it did not allow taxes to be collected and the cost of debt became much higher. Flamengo had no financial credibility, he said. The former coach told how he worked to pay off debts and change the club's outlook. - We decrease over time. There was a time when we had to increase the debt, because we had to resolve outstanding issues with the Treasury. The opposition also accused us of exchanging public debt for private debt. But thanks to this momentary increase, we adjusted the club’s accounts – he stressed. Currently a federal deputy for PSB-RJ, Bandeira de Mello is optimistic about how Flamengo continues to strengthen financially under the leadership of Rodolfo Landim. - From what I see in the statements, there is continuity in the financial effort and its evolution. Since the end of 2018, we have offered future leaders a very comfortable situation. We left part of the gloves from the contract with Globo for the next management and the value of the sale of Lucas Paquetá to Flamengo. The consequence is an improvement in financial conditions, linked to the professionalization of clubs, he highlighted. “WHEN YOU CONTROL BANK DEBT, YOU LEAVE MORE MONEY IN CASH” Flamengo is champion of the 2022 Copa Libertadores (Luis Acosta/AFP) The way Rubro-Negro has balanced its finances is seen as crucial for the club to extract value. Sports management and marketing consultant, Amir Somoggi declared how essential this new step was for Flamengo. - It's really impressive. Not only the bank debt, but also the club's overall debt fell to the lowest level in history, with the highest revenue in history. Normally you see clubs like Atlético-MG and Palmeiras where revenue increases and debt also increases. Debt often gets out of control, as was the case with the Atlético club. Flamengo has this very extreme financial control – he emphasized. Next, Somoggi explained how resolving old banking issues can be decisive for a club to become even stronger. - From the moment you no longer have so many bank debts, you have cash left over. Bank debt generates a financial charge, which is the interest on the debt. The club will have to withdraw from its football, social, marketing or other activities if it does not have the necessary resources to pay the bank debt. Otherwise, it's a snowball, as happens with those who enter into an overdraft and don't pay. It is very difficult for a club to resolve its banking problems, given the very high interest rates that Brazil is experiencing today. Currently, at least 2% or 3% per month is loaned to the club. Under these conditions, it is very interesting that the administration tries to pay off its financial debts. The resources that currently go to banks can also be applied on other fronts, he said. + Most valuable clubs in the world: United leads and Flamengo is the only Brazilian in the top 50. For him, the balance achieved by Flamengo is fundamental, especially given the Brazilian reality. - The big problem is that bank debt finances the football department. As soon as a club reduces its banking exposure, it must reduce its budget. Unless, of course, it significantly increased revenue. Flamengo can because it has a lot of revenue. However, some clubs are reducing their budgets and financially deteriorating their income. The problem is to find a balance between reducing costs and increasing revenue so that your resources can now be used to finance your activity and not to allocate funds to banks. This is the challenge of Brazilian football. Club expenses do not just involve interest expenses. There are also tax updates. Today, updates pay the CDI (Interbank Deposit Certificate), which is very high. It is a situation in which clubs must reduce their banking exposure to achieve this balance, he stressed. EXPERT SEES POSSIBILITY OF ROOM FOR NEW INVESTMENTS The Sports Value partner also notes that the end of bank debt paves the way for Flamengo to invest on other fronts. According to Amir Somoggi, it is possible that projects planned or just on paper will come to fruition. - Flamengo becomes even stronger financially by reducing its bank debt. Without a shadow of a doubt, invest more in marketing, in projects such as content games or in the stadium itself, projects outside of Rio, there are things you can invest in that would previously go to the bank - he said. According to him, clubs must increasingly ensure that their brands can extend to other regions. - Projects such as digital and the concept of “off” fans are very valuable for clubs that have a national dimension, which is how fans from other regions are defined. It is important to extend the gains to the distant fan, who is not there next door. This happens with Barcelona and Real Madrid, which have fans in Thailand and Singapore... - and explains: - Flamengo, Corinthians, Vasco, Fluminense, Botafogo and many other clubs have fans outside their state. There is much greater potential there, because millions of people live far away and no market exploitation is directed at them. Flamengo, for example, has 20 million fans in the Northeast. It would be important to address them too – he stressed. Follow Lance! on G o o g l e News Most read 1 Off the field Vini Jr.'s attitude with Mbappé for Real Madrid draws attention on the web 2 Off the field Brasileirão: see the title chances after Botafogo's draw and Palmeiras' victory 3 Throw! Biz How much did Rayssa Leal earn for winning the SLS stage in Tokyo? 4 Off the field Botafogo fans choose the culprit for the partial defeat: “It's called failure” 5 Flamengo The Flamengo Stadium will have a capacity for 78 thousand people and is inspired by the Europeans; see the images from Lance's Newsletter! Stay up to date on sports and your favorite team with just 1 minute of reading! Subscribe The best in sport in the morning! Article More news Stay up to date with everything! See more Flamengo President of Flamengo will meet this Monday to sell naming rights to the stadium 25/11/2024 - 4:35 pm Flamengo Flamengo makes decision to renew contract with Pulgar 25/11/2024 - 4:07 pm Flamengo Mayor of Rio signs commitment with Flamengo will build stadium 11/25/2024 - 12:19 pm Flamengo Flamengo has a key sequence for the best place in the last three Brazilians 11/25/2024 - 06:00 Flamengo Flamengo and Fluminense have a trial marked by a fight between fans 11/24/2024 - 04:30 Flamengo Brasileirão: see the title chances after Botafogo's draw and Palmeiras' victory 11/23/2024 - 22:33 Flamengo Mauro Cezar provokes Cruzeiro and Diniz fans after defeat: "Thank you" 11/23/2024 - 7:40 pm Flamengo Jorge Jesus, Flamengo's idol, celebrates five years of Libertadores 2019 11/23/2024 - 11:45 am Related Flamengo With David Luiz and Rodrigo Caio, Flamengo trains ahead of the duel against Athletico-PR for the Brasileirão Flamengo 05/05/2023 Off the field Diego Ribas, former Flamengo player Flamengo, will be master of ceremonies at a sporting event in Rio Fora de Campo 05/05/2023 Fora de Campo Flamengo: Gabigol launches R$ 1,499 kit to celebrate historic feat at Libertadores Fora de Campo 05/05/2023