Palmeiras closed the first half of 2022 with an accounting deficit of R$ 30.5 million, according to the balance sheet approved by the Guidance and Inspection Council (COF) and released by the club.
The number is especially the result of the month of June, in which Verdão had a deficit of almost R$ 46 million. In the previous five months, the club had a surplus of just over R$15 million.
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Leila Pereira, president of Palmeiras, during an interview at the Football Academy — Photo: Cesar Greco
The negative mark in June is especially related to the increase in expenses for the month, which reached R$ 91.6 million, a record in 2022.
In June, the club signed José López, for whom Verdão will pay just over US$ 7 million (R$ 36.5 million).
The concern of the board of Verdão, however, is not in the accounting data, but in the difficulty of the cash flow due to the short-term commitments.
As Uol published, the club anticipated in May amounts it would have to receive from partners this year, and in June it also anticipated part of the amount related to Crefisa’s sponsorship contract in 2023.
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After having in 2021 the year with the highest revenue in its history, largely due to the excellent sporting result, Verdão has a cash flow problem for a few reasons: remnants of expenses from previous years, the reflection of the loss of revenue in the pandemic, including box office and Avanti, in addition to the fact that it holds most of the professional cast.
To keep commitments up to date and make investments, such as the signing of López and also Merentiel, the club’s choice was to seek interest-free anticipation of amounts that it would receive later. The measure, in the view of the board, is a way of not compromising the future of the club, without depending on loans.
Palmeiras’ priority has been sports, so the club preferred, for example, to keep Gustavo Scarpa until the end of his contract instead of trying to sell him in the last window that he could, in addition to giving valuations to important pieces of the club, such as Abel Ferreira and Raphael Veiga.
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The idea of the board is still in this sense, of not selling the main players of the group, like Danilo. But it was still necessary to do some negotiation and that’s why Gabriel Veron was sold to Porto for 10.2 million euros (R$ 54.6 million) – Verdão kept 80% of the value, close to R$ 43 million.
This amount will be recorded in the accounts for the month of July, as well as the negotiations of Gabriel Jesus for Arsenal and Borja for River Plate, which should mean an improvement in the balance sheet numbers for 2022.
Budget forecast deficit
The budget forecast already calculated a deficit at the end of the first semester, but smaller, of R$ 15.6 million. In the document approved by the Deliberative Council, the numbers would start to rise from the second half of 2022.
The budget serves only as a guideline for planning the following year and it is already certain that one of its goals will not be reached: revenue in the Copa do Brasil.
The forecast included the calculation of advancement to the quarterfinals, and Palmeiras stopped in the round of 16, but with a lot of complaints about the error in the VAR procedure against São Paulo.
It is believed in the club that this elimination, held internally by the arbitration, made the club fail to raise R$ 10 million between awards and box office.
Palmeiras fans mark the increase of Avanti and crowded games — Photo: Marcos Ribolli
One way to alleviate this problem is in Libertadores. The club made the budget calculations predicting reaching the quarterfinals of the competition, too. But if they beat Atlético-MG and reach the semi, it already guarantees another US$ 2 million (R$ 10.4 million) in prizes, apart from the box office of the game at Allianz Parque.
The crowd has been another important factor in finances, as Avanti once again had more than 80,000 non-paying subscribers, beating 2017 numbers. The average attendance is also high, above 30,000 people at each game in the arena.
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