Inside the financial divide: why Flamengo thrive and Corinthians stall | OneFootball

Fred Luz, who played a key role in Flamengo’s financial turnaround and briefly joined Corinthians in 2023 as CEO, has laid out a stark comparison of the two Brazilian clubs’ internal cultures and approaches to restructuring. Speaking with Lance, Luz detailed why he believes Flamengo’s path to stability was possible—and why Corinthians face hurdles on a similar journey.

Luz arrived at Corinthians with a contract via consulting giant Alvarez & Marsal. His brief was clear: analyze the club’s prospects and develop a strategy to reestablish its financial health. According to Luz, when comparing the Corinthians scenario with Flamengo’s precarious situation in 2012, Corinthians actually showed greater potential at first glance. “The situation of Corinthians at that time, compared to Flamengo in 2012, was relatively better,” Luz told Lance. Yet he clarified this didn’t equate to problems being solved. Despite Flamengo’s significant revenue-generating capability—once projected at R$2 billion—reaching such levels required an extraordinary degree of effort, discipline, and a clear cause-and-effect approach that takes years to bear fruit.

For Corinthians, internal turbulence has become a major roadblock. A key indicator: their financial statements for 2024 were rejected by the Deliberative Council, who pointed to an R$829 million rise in debt. The current board, led by Augusto Melo, disputes these figures, highlighting instead an inherited R$191 million deficit from the previous administration and estimating the total debts at roughly R$2.5 billion. Luz suggested that beyond numbers, the real barrier lies in a lack of political consensus and unity. “To realize its potential requires a lot of effort, getting things right, clarity of goals, and the determination to follow through. Unfortunately, at Corinthians, we didn’t find that. In my opinion, the club lacks internal and political alignment to do what’s necessary. So it’ll take a while,” he said.

Luz’s view of Flamengo’s transformation under the presidency of Eduardo Bandeira de Mello, where Luz first served as financial director and later as CEO, underscores a fundamental difference: consistency of philosophy. He described Flamengo’s leadership, despite personnel changes, as marked by philosophical continuity and collective determination. According to Luz, a string of elected figures—despite personality differences—shared a common vision, driving through financial reforms that have shaped Flamengo’s current success. “What I noticed was so strong that Flamengo, despite apparent disputes, maintains a philosophical continuity for many years. That explains some of Flamengo’s success. People may come and go, but the philosophy essentially doesn’t change. There’s a very strong respect for finances at Flamengo.”

His assessment highlights the critical role of internal cohesion and unwavering adherence to clear objectives—elements he believes set Flamengo apart from rivals like Corinthians within Brazil’s football landscape.

Source: Lance