The speech is concrete in the direction of Atlético-MG. The 2021 financial statement was presented to the board and fans. Despite the surplus, Galo lives with billions in debt. A considerable part (38%) is onerous, with interest/charges/fines, and the solution found is to sell the 49.9% of Diamond Mall, a shopping center located next to the club’s headquarters.
All of this, however, depends on an appreciation by the Deliberative Council, as happened in the process of selling the 50.1% of Diamond in 2017, for the construction of the MRV Arena. A new Council meeting, with that specific theme, is yet to be scheduled.
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Atlético reduced its net debt (total, “gross” debt, less what the club has in cash) to R$1.18 billion at the end of April. But, in the statement of the debt profile on the balance sheet, the 38% of “onerous debt” is sliced on top of the gross debt, which reached BRL 1.470 billion in Dec/2021. Therefore, the “rotten debt” of the Rooster, in gross form, is around R$ 558 million.
Diamond Mall, in turn, was valued at R$728 million at the end of last year, a “fair value using the Income Capitalization Method, based on an appraisal report prepared by the company COLLIERS INTERNACIONAL DO BRASIL”. There was an increase of R$ 8 million in the value of the Diamond in relation to 2022.
The Rooster holds just under half. The 49.9% of the club represent BRL 363 million. It is not possible to attack all burdensome debt. However, there is room for renegotiation of these problems, with discounts and renegotiations, for example.
Auditorium of the administrative headquarters of Atlético-MG — Photo: Bruno Sousa/Atlético
– What is the quickest solution? Alienate the Diamond Mall. We think that between the sale value, renegotiation with creditors, interest that will no longer be paid, it is a very expressive value. If we exclude interest, we are talking about something close to R$ 400 million – comments Rafael Menin, VP of the Board and member of the collegiate body.
The club’s main concern, however, is to stop the bleeding. After all, this onerous debt generated BRL 87 million in financial expenses in 2021 alone. In other words, Galo had to pay an average of R$ 7.2 million in interest/charges per month. Value that, according to Menin, could be invested in football.
– What we joke about here is that the sale of Diamond Mall will allow Atlético to have three, four, five players, the carat of a Hulk. Today we pay the bank what we could pay in reinforcements for our squad,” he said.
“The club closed last year almost at zero to zero. If it had R$ 87 million more in football investments, this would translate into athletes of the highest sporting standard” (Rafael Menin)
If Atlético dissipates the short-term debt, which generates many charges, then it will live with much more peaceful problems. The remaining indebtedness refers to loans from supporters and investment in athletes (not onerous), Profut/Tax installments, and anticipated revenues (according to Ricardo Guimarães/Família and BH Supermercados).
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In the case of the agreement with Ricardo Guimarães, Atlético explained that it withdrew R$65 million from the club’s net debt, as this amount owed to the former president will be paid through space for sponsorship. See details here. Another R$12 million was written off from the debt in a similar agreement with Supermercados BH.
Finally, Galo withdrew from PROFUT the installment payment of non-social security debts. He emigrated to PERSE (Emergency Program for the Recovery of the Events Sector), and had a reduction of R$ 51 million. The remaining balance, of R$ 115 million, was paid in 145 installments.
When it negotiated 50.1% of Diamond Mall with the company Multiplan (which manages the mall), Galo received R$ 250 million, which ended up turning R$ 296 million at the time of the operation. 100% of the amount was allocated to the construction of the MRV Arena. Now, the promise is that the entire amount will be used to pay the onerous debt.
– It’s not to pay values to our supporters, the 4 R’s. This amount will be used to pay onerous debts, banks, suppliers, entrepreneurs. This money will be stamped for that – highlighted the president of the club, Sergio Coelho.
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Atlético’s debt profile:
gross debt Atlético’s total reached BRL 1.47 billion in December 2021. Net debt was BRL 1.3 billion, which was reduced until reaching 1.1 billion in April 2022
- 38% onerous – BRL 558 million
- 36% non-onerous – BRL 529 million
- 21% tax installments – BRL 308 million
- 5% anticipated revenue – 73.5 million
Atlético’s debt profile: 38% are short-term debts — Photo: Reproduction
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Galo na Veia – Atlético-MG Membership Program — Photo: Disclosure