Corinthians retain place as Brazil’s financial powerhouse
17 May 2012
Corinthians has retained its position as Brazilian football’s leading revenue generator for the third consecutive year, but the club has deflected suggestions that its dominant position is under threat.
Auditing and consulting company BDO’s report into the financial state of Brazil’s top 20 clubs in 2011 outlines that Corinthians generated revenues of US$144.7 million, a 37% increase on the previous year. Sao Paulo came in second place with $112.7 million, while Internacional took third with $98.8 million. Santos was the biggest climber, with its revenue jumping by 62% to occupy fourth place with $94.3 million.
BDO’s report details that Corinthians’ strength is mainly owed to its television revenues, which make up 39% of its total income. Revenue generated by player transfers and the sale of economic rights to players still at the club also rose from 17% of the total to 21% year-on-year. However, BDO director, Amir Somoggi, told Globo Esporte: “We can say that Corinthians is not at its best. There was only one major discrepancy in relation to Sao Paulo in second place because of the large share of TV (revenue) that the club has. If the question of transfer of athletes is excluded from the sum, the difference between the two clubs drops to about R$29 million (US$14.5 million) – a much smaller number.”
Corinthians’ figures saw the notable reduction of income from sponsorship and advertising. The Sao Paulo-based club’s vice-president of finance, Raul Correa da Silva, explained the drop from a 22% share to 15% stating: “The 2010 season was special for the club, being the centenary year and having Ronaldo on the field, therefore attracting a greater appeal. Moreover, in 2011, we had no involvement in the (Copa) Libertadores. It’s just a natural reflex. We had a special year with the sale of players, but it’s not a normal situation. We have a staff of qualified professionals who seek to reap rewards on projects that last for 10 years and beyond administrations.”