Clube de Regatas do Flamengo saw its net profit fall from R$266.3 million to just R$1.9 million in the first nine months of this year compared to last year, according to the financial statements of the Rio de Janeiro club.
According to Flamengo, the variation is due to the fact that, last year, profits soared due to the sale of the rights of players João Gomes and Matheus França, who together generated non-recurring revenue of R$250 million.
The club’s recurring gross revenue, in turn, which does not include the sale of athletes, totaled R$826.5 million, compared to R$778.2 million in 2023. This increase is due to new contracts signed throughout 2024, which will produce effects in future years, “indicating that this level of revenue is sustainable”.
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Revenues
Flamengo’s net revenue totaled R$785.6 million, a figure lower than that recorded a year earlier, R$1.022 billion. Meanwhile, with football, the value fell to R$710.09 million, from R$969.6 million.
Among the club’s biggest revenues, the main one is from broadcasting rights, which totaled R$248.7 million until the end of September, but which was lower than a year ago, R$291.7 million.
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Commercial revenue, with licensing & royalties and sponsorship & advertising, increased to R$230.5 million, from R$181.8 million a year earlier.
Game operations, such as box office, stadium and fan membership, fell to R$191.3 million, from R$202.09 million, in 2023.
Players
The biggest impact was due to the athlete transfer line, which totaled R$73.448 million this year, compared to R$282.278 million last year.
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On the other hand, Flamengo had to receive, due to past transfers, an amount of R$145.1 million at the end of September, compared to R$177.6 million a year earlier.
Among the largest amounts to be received are figures from Sport Club Internacional (R$ 24.2 million), due to the sale of Thiago Maia; from Wolverhampton (R$ 23.317 million), by João Victor Gomes da Silva; and Union Deportiva Almeria (R$ 16.789 million), by Lázaro Marques.
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Hiring
Flamengo, at the beginning of the year, hired Léo Ortiz, Matias Viña and Nicolas de La Cruz, whose payment for the acquisition of 100% of their economic rights was made in cash. These investments consumed around R$115 million of the club’s cash flow
In the second window of the year, which lasted until September, Flamengo replaced athletes who were sidelined due to serious injuries, but also signed athletes Carlos Alcaraz, Alex Sandro, Gonzalo Plata and Michael.
In total, until the release of the balance sheet, the Club invested around R$306 million of the Club’s cash in the acquisition of new players and in paying off installments of acquisitions from previous years.
Investments
In addition to the investment in players’ economic rights, this quarter, Flamengo invested in the acquisition of land to expand the training center, in improvements to its headquarters in Gávea and, mainly, in the acquisition of the Gasologista land, for the construction of the stadium own, for around R$147 million.
Finally, the club reported that it ended the quarter with R$45 million in cash, including money in the current account and financial investments, compared to R$217 million a year earlier, a decline justified by the purchase of land for a new stadium, in addition to the acquisition of players.
“This amount still allows us to maintain healthy operations in the coming months, without the need for financial debt”, highlights the club’s balance sheet.
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