Flamengo will close 2021 with a reduction in net debt and more than R$ 200 million paid in investments made in athletes’ rights | Venetian Column

Rodrigo Tostesvene casagrande

Posted 03/09/2021 20:05 | Updated 03/09/2021 20:13

Overwhelming in the field and up to date financial health outside the four lines. Even with the Covid-19 pandemic and consequently the drop in revenue, Flamengo ended the first half of 2021 with R$ 35 million in cash. For such success in finance, the responsible team, led by VP Rodrigo Tostes and Director Fernando Goes, does a hard job managing the sector.

Despite its success, there are those who say that Flamengo “masks” its financial problems and is increasing its debt. On the contrary: the expectation is to reduce the Club’s net debt by the end of 2021, even in a pandemic year.

In 2021 alone, Flamengo is expected to pay more than R$ 200 million in amortization of acquisitions of federative rights and their costs related to acquisitions of players carried out in 2021 and in previous years, such as Pedro, Gabigol and Gerson. The latter was sold, and the club will receive in installments that will be paid by 2025.

In summary, the net operating debt in December 2020 was R$440 million. The planning of Flamengo’s finance team is to arrive in December of this year with a reduction of R$ 76 million from this amount, even in another year of pandemic. In other words, reach R$ 364 million at the end of this season.

In a recent interview with Jornal O Dia, Rodrigo Tostes, Flamengo’s current VP of Finance, spoke about the club’s financial health during the pandemic.

“Financial health is very healthy. The figures for the first half clearly show that we are doing well. We could be better if there was no pandemic, but it shows that we were strong enough in 2019, in the process of transformation. Just to try to exemplify one a little, we ended the first half with approximately R$35 million in cash, despite having lost between R$70 million and R$80 million in box office and supporting partner. We paid all the bills on time. Investments a little more than R$110 million in athlete rights that we have been acquiring over time. So, we invested R$110 million, we pay the bills on time, we stopped receiving 75 million due to the problems of the pandemic and even so We ended the first half with R$35 million in cash. This shows the strength of the brand, the work being done, but not only in the financial area, but in all areas, and we manage this work. with promised, delivered, not only from the point of view of sales, but of performance. The Olympic Sport has been successful. Marketing has been delivering more. Flamengo is absolutely healthy, but it could be better if it weren’t for the pandemic.”