Flamengo has a profit of R$ 44 million in the second quarter, but warns of the need to sell | Flamengo

Flamengo released the financial statement for the second quarter of this year and recorded profit of BRL 44 millionwhich partially offset the losses in the first quarter (R$ 63.6 million), which was already foreseen in the budget because of the lower revenue (Carioca).

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Flamengo fans helped boost box office revenue in the second quarter — Photo: Paula Reis/Flamengo

Now, the accumulated deficit for the year is R$ 19.7 million. THE Accumulated gross revenue is R$ 437.7 millionand the club believes that it will be able to reach the goal of hitting the R$ 1 billion mark by the end of the year.

– We continue to believe that the result for the year will be a surplus, remaining at levels registered in 2021 or above, which will depend on the reach of the projected sports performance – says the report.

The highlight in the second half of the year is the stronger resumption of “Matchday” revenue (ticket office and fan-partner), thanks to large audiences. In the first half, there were R$ 65 million in this aspect.

The statement still does not include the financial results of the classification for the quarterfinals of Libertadores and Copa do Brasil, nor the revenue from the return games, which took place after June 30th.

In the report, the club informs that it has R$ 130.2 million in cash, between current accounts and fixed income investments, which are easily converted into cash.

– This amount represents a very safe amount to maintain healthy operations in the coming months, eliminating the need to increase financial indebtedness and allowing us to be prepared for the opportunities of the present second window of transactions (July and August 2022). It is worth highlighting the fact that this position was achieved despite the reinforcements made in the first window (Fabrício Bruno, Pablo, Marinho, Santos, Thiago Maia and the renovation of Arrascaeta), but also thanks to the sales made (especially that of Michael) and the receipt of a contractual bonus from Olympique de Marseille (Gerson), reinforcing the idea that knowing how to make acquisitions is knowing how to make sales at the right times – says the report.

Debt is reduced by BRL 10 million

The statement informs that, despite the fact that Flamengo has increased its cost with suppliers in relation to the first quarter (from R$ 31.2 million to R$ 43.8 million), explained in part by inflation, and also increased the value of salaries paid (from R$42.4 million to R$50.6 million), the club managed to reduce the debt by another R$10 million in this period.

Regarding possible expenses with legal proceedings, the report highlights the good news that Flamengo had a favorable decision in the case with the Central Bank, in which the club was at risk of having a fine of up to R$127 million.

– We also had the progress of the action with Bacen, in which the issue of the action to reinforce the attachment filed at the beginning of the year was resolved and, with a new judgment by the STJ in the action on the merits on June 7, although there has not yet been the final decision, the situation tends to be much more favorable for the club.

Best moments: Flamengo 4 x 1 Atlético-GO, for the 20th round of the Brasileirão 2022

Best moments: Flamengo 4 x 1 Atlético-GO, for the 20th round of the Brasileirão 2022

“It is necessary to keep the sales cycle active”

the flamingo still has to pay R$ 172.5 million for the purchase of playersof which BRL 77.9 million in the short term (next 12 months, as of July 2022), and BRL 94.5 million in installments from July 2023 onwards. The amount receivable for the sale of athletes is R$ 99.3 millionof which R$ 65.7 million in the short term and R$ 33.6 million in the long term.

Then, the difference in the balance of purchases and sales is negative by R$ 62.2 million. This balance payable increased by approximately R$30 million in relation to the first quarter, mainly due to the fact that Flamengo received in this period credits of a volume greater than what was paid in debts with other clubs, mainly from the amount received from contractual bonuses with the Olympique de Marseille (Gerson).

The difference between what Flamengo spent and what he will still receive will increase, since the board is firm in the market to reinforce the squad and invested in the arrivals of Erick Pulgar, Vidal and, mainly, Everton Cebolinha (it was announced on June 20, but only appeared in the IDB after the end of the second quarter). The report points out that it will be necessary to sell athletes.

– This range of amounts indicates that it is necessary to keep the sales cycle active, taking advantage of market opportunities, given that there are still amounts of player purchases to settle in 2022 and 2023 and which preferably need to be paid with resources from the club’s operations, especially at a time when financing has become more expensive in the market, due to the national and international crises that have been impacting everyone.

Flamengo agreed to transfer Arão (three million euros – R$16 million) and Gustavo Henrique to Fenerbahçe. The defender’s transaction was for a loan worth 1.4 million euros (R$ 7.4 million). If the defender reaches the game goal, the Turks will have to pay another 1.4 million euros and keep the player permanently.

Vitinho received an offer from Panathinaikos, but, as he can already sign a pre-contract with another club, the Greeks want the free release, and Flamengo would keep a part of the rights. The board, in principle, was not interested in this business model.

What is certain is that Flamengo will have to cash in with the departure of more players this year.

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“More fuel for the delusions of world domination”, says Arthur | The Voice of the Crowd

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