Atlético-MG has a reduction of R$ 77 million in awards and accounts tighten

Atlético-MG will have a reduction of at least R$72 million in awards in 2022 compared to last season after being eliminated from the Copa do Brasil and Libertadores. It is unclear whether the club will be able to meet its budget forecast for prizes and the box office for the season because of the drops.

Last year, Galo achieved the highest revenue in its history with R$ 505 million in operating income. This amount was strongly driven by revenues from broadcasting rights and awards, with a total of BRL 279.3 million, with around BRL 39 million referring to the previous year (2020). Of this total, half was obtained with the classifications by phase.

Even so, the club had to take out bank loans to finance its team in the 2021 season. So much so that the net debt jumped to R$ 1.3 billion, with a fall in the beginning of 2022 because of tax renegotiations.

This year, in its budget, Atlético-MG estimated that it will receive R$ 163.7 million with broadcasting, image and award rights, which includes fixed TV quotas and per phase. It is the largest revenue forecast within the accounts of the Minas Gerais club. The estimated total is R$ 447.2 million.

Well, Atlético-MG has accumulated R$ 28 million in prize money so far, which includes the money from the Supercup, which did not exist in 2021. Atlético-MG will have a reduction of at least R$ 72 million from last year’s revenue. It was R$ 66.8 million from the Copa do Brasil, and another R$ 10.3 million from Libertadores. It is explained: it is the value corresponding to the quarters, semis and finals of the Copa do Brasil, and the semifinals of Libertadores. It is necessary to discount the quota of the Supercup.

Last year’s Brazilian title prize was R$40 million. In this case, the club is also far from the cup. The difference between 1st and 7th, the current Atletica position, is around R$ 12 million. Each placement yields R$ 2 million more.

Galo’s budget does not describe the club’s sporting goals for this season. The information already published on UOL is that the budget detailed that “As a premise of sports performance, a conservative scenario was adopted.”

Obviously, no team expects to be champions of a tournament like the Copa do Brasil. But there was great reliance on player awards and sales, as the club’s recurring revenues (rights, sponsorship) are lower than elite rivals in Brazil. And the budget was already tight with the cost of football practically equaling all revenue.

Another line in Galo’s budget that will be hurt is the box office. By estimation, the club would raise R$ 53 million with this item in the season. Last year, the club earned R$ 42.8 million. It can only count on an audience at the end of the season, but it has had more decisive games with extraordinary income.

Thus, Atlético-MG should become more dependent on the sale of players, which was already estimated at R$ 140 million. Even to avoid a new growth in debt at a time when the club is already preparing to become SAF and receive investors. What is certain is that, this year, the premise of investing that generates revenue has not been confirmed.

Source link

About Admin

Check Also

Djokovic breaks silence on Australian Open controversy with father

It was an unavoidable question and Novak Djokovic didn’t run away from her. The Serb …

Leave a Reply

Your email address will not be published. Required fields are marked *