The balance sheet released by São Paulo referring to the accumulated result for the year until September shows an increase of R$ 70 million in the club’s debt. The current value is approximately R$675 million. In December 2020, the São Paulo deficit was around R$ 605 million. The numbers were published on the club’s official website.
“It’s a big increase from one year to the next. The debt behavior is incompatible with the year and with the statements of the board. The increase is associated with salary issues, agreements and the need to support the increase in costs that they said they did not. There would be. In other words, the increase was caused by management and not by external aspects”, analyzes Cesar Grafietti, economist and specialist in sports management and finance.
The financial situation of São Paulo made the club supervisory board to issue a report showing concern for the situation.. In its analysis, the fiscal council urges the club to be cautious when making large hires. Members used the termination of Daniel Alves as an example. São Paulo accumulated a debt between R$ 15 million and R$ 18 million with the player. O club stimulated savings of BRL 27 million with the termination of the contract.
“The termination of player Daniel Alves, which caused a great negative impact on the club’s finances, proved inevitable. However, his passing demonstrates the importance of planning and responsibility in the signings of the club. soccer professional because they always involve stratospheric values, and any error regarding this issue can compromise the financial health of the club for years, as well as in the present case”, says the report of the fiscal council.
The five members who signed the November 11 report available on São Paulo’s official website consider it urgent for the club to increase player sales in the next transfer window.
The latest balance sheet released by São Paulo, referring to the accumulated up to September, shows that the institution is far below the revenue expected for the sale of players in 2021. The club expected to accumulate R$144.6 million with negotiations, but so far has only managed to R$75.8 million.
Wanted, São Paulo preferred not to manifest itself. O UOL Sport he found that the club, despite being concerned with the increase in the deficit, has as a priority to renegotiate short-term debts, which can lead to punishments for teams, such as loss of points in championships and the ban on registering new players. In addition, defaulting on debts would make it more difficult to take out new loans.
Currently, the tricolor club has a little less than R$370 million in short-term debt – in the long term, the amount is R$305.5 million. In 2021, São Paulo has already taken out R$ 154.3 million in loans to pay off short-term debt. The budget for the year, approved by the deliberative council, foresees that this number will increase to BRL 176 million.
In its balance sheet, São Paulo detailed the use of part of the amount. Debts were paid in relation to the signings of striker Pablo, of goalkeeper Tiago Volpi, in addition to debts with Orlando City (USA) for the loan of Kaká and with Dynamo Kiev (UCR) for the hiring of midfielder Tchê Tchê. The latter, worth R$ 26.1 million, prevented the tricolor club from being punished by FIFA.
The financial situation made the São Paulo board of directors adopt a cautious speech about the next season. Carlos Belmonte, football director, he has already stated that the club will not make big signings for the next season.. At a recent press conference, the coach Rogério Ceni stated that the next few years will be “very difficult” for the tricolor team and predicted a simpler team for 2022.
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