By Samindra Kunti
April 19 – The Brazilian FA (CBF) has reported record revenue of $208.1 million for 2016, closing the book year with a surplus of $14.16 million, a drop from the $23.16 million in 2015.
Earlier this week the CBF’s general assembly, with the participation of the 27 state federations but without the involvement of the clubs, approved the organisation’s balance sheets. The revenue of $208.1 million in 2016 was a big increase on 2015’s grossed revenue of $163.7 million.
“We have lived through the worst period in football history since we got here,” said CBF secretary general Walter Feldemann. “With the results that we are presenting, we show that, in addition to overcoming the crisis we faced, it may be during the crisis that you grow and find answers. We have had no financial impact like, unfortunately, FIFA has shown in its balance sheets.”
The revenue tops that of any domestic club. Flamengo, Brazil’s biggest club, grossed $164.1 million and São Paulo based Palmeiras $160 million. CBF’s financial health remains robust in spite of having lost a number of sponsors as the organization keeps struggling with its corruption-riddled image.
Since May 2015 former CBF president José Maria Marin has been under house arrest in the United States. Ricardo Teixeira and current CBF president Marco Polo Del Nero were indicted and are still wanted by the FBI over corrupted TV rights negotiations.
Del Nero hasn’t left Brazil since his indictmen t. The CBF boss is however contemplating a visit to the Confederations Cup in Russia to rekindle his ties with FIFA, according to Brazilian media.
With CBF’s institutional crisis Samsung, Gillette, Sadia, Michelin and Unimed all jumped ship. Even so the CBF still generated $132.3 million in sponsorship revenue in 2016, up from $109.2 million in the previous year. The CBF also raised $37.6 million from TV rights.
“Our contracts are registered in dollars, there was fluctuation and that’s why we lost $12.54 million,” explained Feldemann. “Apart from this, we increased our investments in football. This explains the numbers, which are good.”
“Two years ago a new management model was adopted,” said Feldemann. “This model seeks to increase revenues and reduce expenses, by working hard and investing primarily in football. The investment in football was around $96.2 million [up from $72.2 million in 2015]. This included the national teams, the [domestic] competitions and general football promotion.”
Contact the writer of this story at moc.l1732364154labto1732364154ofdlr1732364154owedi1732364154sni@i1732364154tnuk.1732364154ardni1732364154mas1732364154