Club debts rise above inflation

After the launching of Sports Value’s latest study on the finances of Brazilian clubs (click here), we launched a poll to find out which topics were most interesting to our followers.

For 35% of people, the issue that matters is the teams’ debts. Here the pool result.

Club debts rise above inflation

The Top 20 teams in Brazi  net debtsl reached R$ 6,9 billion in 2018, a 5% increase compared to 2017.

In the last 8 years teams debt sincreased by 86% while the cumulative inflation for the period was 57%.

Unfortunately, the teams debts grow through the leveraged management they present, making loans to be used as a management tool. So clubs get strangled in financial debt.

There are still high debts with the Federal & Municipal state government.

Other important debets are athletes, former athletes and coaches. An immensity of civil and labor lawsuits.

Few were the teams that managed to keep their debts growing below inflation between 2011 and 2018.

They were Fluminense Botafogo, Vasco da Gama and Flamengo, all of whom had large historical debts and needed to reduce them.

One highlight was Goiás, which presented a drop in its debt in the period.

Debt Growth X Cumulative Inflation – Between 2011 and 2018

Chapecoense and Ceará had no data available. Athletico-PR had zero debt in 2011.