Despite the sentiments of Brazilian fans, football is no different from other industries. Those with the highest revenues and the best management win it all. There is less and less room for the underdogs, and this has never been more apparent than with the recent hegemony of Flamengo and Palmeiras — two massive clubs from Rio de Janeiro and São Paulo, respectively.
Brazil’s top 30 clubs have seen their revenues rise over the past decade, but so has their debt, according to an EY report.
The good news is that the increasing professionalization of club administration is beginning to level the playing field. However, the optimal point will not be reached before 2025.
The nominal gain of the 30 clubs analyzed by EY — 19 that played in the top flight last year and 11 from the second division — rose 156 percent between 2013 and 2022, from BRL 3.17 billion to BRL 8.13 billion (USD 3.5 billion).
Discounting inflation, the rise was of around 50 percent. Nevertheless, it is impossible not to notice the high concentration of revenues. Five clubs (Flamengo, Palmeiras, Corinthians, São Paulo, and Internacional) account for 49 percent of the total.
Concentration of revenue often translates into greater success on the pitch. Over the ten-year period analyzed by EY, Flamengo won six titles in South America’s three premier competitions (the Copa Libertadores, Brazilian league championship, and Brazilian cup). Palmeiras won seven.
Revenue from player transfers is of great importance to Brazilian clubs because the country is, in effect, a talent exporter. Last year, Brazilian clubs sold 998 players to teams abroad, according to FIFA. On the other hand, they signed 857 players from other countries, making Brazil the world’s second biggest talent importer after Portugal.
However, income from transfers is the least important type in the clubs’ financial analysis.
“It’s a non-recurring revenue, greatly influenced by the exchange rate. That’s why we separate this source from the rest in our report, to...
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