São Paulo accounts show R$18.5m March deficit, debt surges | OneFootball

São Paulo released its consolidated financial report for the first quarter of the year, showing a visual restructuring compared with previous internal statements to make the data easier to read. Among the main structural changes, the monthly economic results and payment flow charts were converted into tables. Unlike the January statement, the institution resumed publication of the cumulative balance sheet and the breakdown of credit operation movements.

March indicators show that the club posted a deficit of R$ 18.5 million for the month, a figure that exceeded the target set in the board’s budget by R$ 12.3 million.

With this performance, the year-to-date result shows a negative variation of R$ 3.6 million beyond what had been projected, reversing the R$ 11.4 million surplus recorded in January, which had been driven by the transfer of player Rodriguinho to Bragantino.

Although revenue from the sale of players’ economic rights exceeded budget projections by more than R$ 15 million — due to the impact of Rodriguinho’s transfer — the football department posted lower-than-expected income and expenses above the ceiling projected for the period. This financial performance mirrors the mismatch between revenue and operating costs seen in previous years.

The institution’s total liabilities also rose significantly during the period. After closing the audited 2025 financial statements at R$ 858.2 million, the club’s consolidated debt increased again in the first quarter, reaching R$ 936.2 million.

PROFESSIONAL FOOTBALL

São Paulo’s professional football department posted a negative variation of R$ 2.3 million in its net revenue for the current period. The result directly reflects the financial decline in broadcasting rights, advertising, sponsorship, membership program, and matchday ticket revenue. This negative impact offset the gains made from brand licensing and the transfer of player Rodrigo Huendra to Red Bull Bragantino.

The board projects a budget recovery over the course of the year. Broadcasting rights revenue is expected to be recognized as competitions progress and the performance-based payments from the Brazilian Championship are received. In the commercial sector, revenue is expected to recover with the signing of two new corporate advertising and sponsorship contracts, scheduled for the first four-month period.

Under the annual targets, the club set a goal of reducing the squad’s wage bill by R$ 73 million, while setting a ceiling of R$ 17 million for new replacement signings. The payroll saw partial relief with the departure of players such as Oscar dos Santos Emboaba, Erick de Arruda Serafim, Giuliano Galoppo, and Rodrigo Huendra, as well as the loan moves of players such as Jandrei Chitolina Carniel, Maílton dos Santos, Nahuel Adolfo Ferraresi, and Álisson Euler.

On the other hand, in order to maintain technical competitiveness and the resulting sporting and financial return, São Paulo made major signings. Players Artur Victor and Cauly Oliveira arrived on loan, while Marcos Antônio, Carlos Miguel Coronel, Daniel de Oliveira, Lucas Ramon, and Matheus Dória were signed permanently. The board also extended the contracts of Luciano da Rocha Neves, Felipe Negrucci, José Sabino, and Nícolas Bosshardt, in addition to new professional deals for players coming from the Under-20 team.

Breakdown of operating expenses

As a result of transfer market activity and squad maintenance, operating expenses exceeded initial projections in specific areas. The mismatch was driven mainly by salaries and image rights, which came in R$ 15.2 million above budget, and by intermediary and agent commission costs, which totaled R$ 801,000 above the ceiling.

On the other hand, the club achieved important reductions in other areas of the balance sheet:

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