Corinthians announces August balance sheet with a surplus of R$1.8 million; debt remains high

Last Friday night, Corinthians released its balance sheet until the month of August 2021. In the document, the club announces a surplus of R$ 1.8 million in the first eight months of the year, and saw its accumulated indebtedness decrease slightly in relation to the month of June, according to the criteria of the THROW!. Now, it is at R$ 977.2 million, still far from being controlled.

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This positive result has to do with the austerity policy applied since the beginning of the administration of Duilio Monteiro Alves, who cut spending in the football department, reducing the payroll with the departure of some players. In addition, the club managed to bring in new revenue with new sponsorships.

Thus, football had a surplus of R$ 18.641 million in the period, while the social club had a deficit of R$ 16.799 million. Therefore, the net result for these eight months was R$1.841 million. It is worth remembering that last year, added to the 12 months, the loss was R$ 123.3 million.

The surplus could have been larger had there not been a substantial increase in football spending over the past two months. Department expenses increased by R$61.211 million, while revenues also increased by R$47.837 million (TV rights and sponsors), but not as much as expenses, such as those related to personnel, which grew by more than R$33.5 million between June and August.

The document still does not include all salaries related to new hires recently hired by the club, such as Giuliano, Renato Augusto, Róger Guedes and Willian. According to the board, the payroll will still be lower than it was before the departure of players, especially in the first half. All athletes were free on the market to sign.

Despite this positive result in the period, the accumulated debt remains high, but decreased in relation to the balance sheet released in June. The amount went from R$978.8 million to R$977.2 million, of which R$595.2 million is short-term debt, which needs to be paid off within 12 months. This amount increased by R$6.7 million compared to the accumulated in the first half of the year, something that draws attention.

It is worth remembering that this debt does not include the amounts related to Neo Química Arena, which are being negotiated on other fronts and should have an outcome announced soon, according to the directors themselves.

Among these shorter-term debts is that of “Obligations and Social Charges”, which stands out for its gradual increase in recent months. Now it is R$ 194.7 million, one of the reasons is the fact that the club has not deposited the employees’ FGTS for about two years. On December 31, 2020, this amount was R$138.2 million, an increase of R$56.5 million in eight months.

Check some values ​​for August/2021 compared to June/2021

Surplus
Until June 30, 2021 – BRL 394 thousand
Until August 31, 2021 – R$1.841 million

Soccer surplus
​Until June 30, 2021 – R$ 33.891 million
Until August 31, 2021 – BRL 18.641 million

Social Club Deficit
Until June 30, 2021 – BRL 33.497 million
Until August 31, 2021 – BRL 16.799 million

Football Recipes
Until June 30, 2021 – R$ 200.111 million
Until August 31, 2021 – BRL 247.948 million

Football expenses
Until June 30, 2021 – BRL 168.096 million
Until August 31, 2021 – BRL 229.307 million

Social Club Recipes
Until June 30, 2021 – R$ 20.501 million
Until August 31, 2021 – BRL 35.705 million

Social Club Expenses
Until June 30, 2021 – R$ 53.395 million
Until August 31, 2021 – R$ 51.909 million

About Abhishek Pratap

Food maven. Unapologetic travel fanatic. MCU's fan. Infuriatingly humble creator. Award-winning pop culture ninja.

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