By Samindra Kunti
February 2 – Corinthians have closed the financial year 2014 with a €29.8 million deficit. The losses could impact on the club’s presidential elections on February 7.
Last season Corinthians had a modest season on the pitch that reflected in the financial results off it. The Brazilian giants from Sao Paulo’s metropolitan area finished fourth in the domestic league and crashed out of the cup in the quarterfinals against Atletico Mineiro, 3-4 on aggregate.
There were two main factors contributing to the deficit. The incremental revenues generated at the new Arena Corinthians were used to pay off the construction of the stadium with the club having to amortize the arrears incurred by the administration under of Andres Sanchez. The club also paid about €16.5 million to government tax collection agency Refis.
In the transfer market the club spent €13.2 million on the services of 25-year-old striker Alexandre Pato who failed to have the impact Corinthians had hoped for. He has been loaned out to city rivals Sao Paulo, but Corinthians continue to pay part of his wages.
The 2014 figures are a dramatic reversal for Corinthians who in 2013 had a surplus of €330,000.
The revelations are disrupting the final days of Mario Gobbi’s presidential term. Next week the club will elect his successor. Most Brazilians clubs tend to hold their elections in December, at the end of the season.
The economic downturn is also bad news for Roberto de Andrade, the presidential candidate who is attempting to succeed his ally Mario Gobbi. He has confessed that “we are in a difficult financial position.” Roque Citadini is the opposition candidate.
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