Bottomless pit: São Paulo miss revenue target, R$65.5m deficit by May | OneFootball

The official financial data presented by Harry Massis’ administration to São Paulo’s Deliberative Council reveal a scenario of severe budget instability in the first five months of the season. The figures were obtained by AVANTE MEU TRICOLOR from sources in the upper ranks of the Morumbi club.

In the cumulative period between January and May, Tricolor posted an operating deficit of R$ 65.5 million, driven by the failure to meet revenue targets combined with spending exceeding the budget.

According to the financial statement, the club had projected gross revenue of R$ 315 million for the period, but brought in R$ 308 million — missing the target by R$ 7 million.

On the other hand, operating costs exceeded the initial estimate of R$ 365 million, reaching R$ 374 million (R$ 9 million above the budget cap).

Projection for the Close of the Half-Year and the Growth of Liabilities

The outlook for the June and July financial statements points to a further worsening of the accounts. The suspension of the domestic football calendar due to the World Cup drastically reduced matchday and membership revenue, leading analysts and council members to project a consolidated loss close to R$ 100 million by the end of the first half of the year.

As a consequence of the financial turmoil, São Paulo is seeing its financial problems spill over onto the pitch. The club owes players image rights payments, signing fees, and bonuses; some squad members have asked to leave because of the debts; and it is dealing with a FIFA transfer ban that prevents it from registering two signed reinforcements, center-back Domingos Duarte and left-back Iago.

Alongside the deficit for the period, São Paulo’s total debt rose significantly during the year:

This article was translated into English by Artificial Intelligence. You can read the original version in 🇧🇷 here.