Yes, yes, no: São Paulo board rejects 2025 accounts again after blunder | OneFootball

After the embarrassment of having the first vote canceled due to technical problems, São Paulo’s Deliberative Council once again rejected the 2025 financial statements presented by president Harry Massis Júnior.

This time, the vote was 210 to 24, with three abstentions. In other words, the outcome was even more unfavorable for the Tricolor chairman, since on Thursday (26) the tally had been 194 votes against and 34 in favor, with five abstentions.

It is the first time in history that São Paulo’s Council has rejected the accounts submitted by a president.

Of course, the numbers still refer to the administration of predecessor Julio Casares, but Massis led a movement with his allied base to get the figures approved, fearing an even greater blow to the club’s credibility after the string of corruption scandals.

And Casares ended up becoming the central point behind the current chairman’s loss of support on the matter, since what prompted the rejection was the lack of explanation for R$ 7 million recorded as a “presidency promotional fund,” an inconsistency highlighted in the independent review conducted by RSM and reinforced internally by a Fiscal Council report.

Within the club’s political circles, the reading was straightforward: there were enough elements to block the financial statements.

The previous vote was canceled after the electronic system used in the voting had been configured incorrectly, registering the ballot as secret when the bylaws require an open vote for this type of deliberation.

In practice, the receipts were issued without individual identification of the votes, making the traceability required by the Council itself impossible.

The error was acknowledged by Tafner Solutions, the company responsible for the platform. “We offer our sincere apologies for what happened,” the company said, attributing the problem to a parameterization error and stating that it is treating the case “with the utmost responsibility.”

The company also guaranteed that “the case is being reviewed within current processes and operational procedures, with the aim of strengthening the applicable controls so that situations of this nature never happen again.”

The episode led Council president Olten Ayres de Abreu Júnior to order the reopening of the vote, with a new deadline until 10 p.m. this Friday (27).

“Given the seriousness of what occurred, and in respect for the principles of the bylaws and the internal regulations, which must govern the acts of this Council, I order the reopening of the voting process so that the votes may be duly collected with proper nominal identification,” the executive wrote.

Salve o Tricolor Paulista, a group of opposition councilors, formally stated that the original result should be preserved, arguing that the operational failure does not alter the vote tally already announced: “Thus, any eventual new collection of votes will have a merely instrumental purpose, restricted exclusively to the nominal identification of the voters, and may not, under any circumstances, alter or replace the result already proclaimed, which remains whole and untouchable.”

The trend is for the rejection to be upheld, even if the new score may vary. The current administration, led by president Harry Massis Júnior, argues that this result will affect the club’s image in the market, especially at a time when sponsorship and loan negotiations are on the agenda.

On April 6, there will be a new vote on credit operations, although both have already been carried out: one in December, for R$ 30 million with Banco Tricury, at interest of CDI + 0.75% per month; and another last month, for R$ 5 million with Banco Rendimento, at interest of CDI + 0.6% per month.

THE NUMBERS IN THE FINANCIAL STATEMENTS

São Paulo presented the Deliberative Council with its 2025 financial statements, which at first glance draw attention because of the absolute figures: a record revenue of R$ 1.085 billion (up 47%) and a return to surplus, at R$ 56.9 million, after its biggest deficit in history in 2024.

There is, in fact, a relevant improvement in operational indicators, such as positive EBITDA of R$ 246.1 million, and a reduction in net debt to R$ 858.2 million, about R$ 110 million less than the previous year.

There has also been progress in the use of Morumbi, whose revenue grew 61.8%, signaling progress in the management of the club’s assets.

But the picture is far from that simple, and that is precisely what underpins the internal resistance to approving the accounts. The main point of attention lies in the composition of this record revenue. Of the total R$ 835.9 million generated by football (77% of the pie), R$ 283.8 million came from player transfers, almost double what had initially been projected.

By definition, this is non-recurring and highly volatile revenue. Without this exceptional market performance, the final result would not have been positive, and the club would have remained in the red.

On the other side of the equation, expenses also grew significantly. The total incurred in 2025 was R$ 902.8 million, an increase of nearly R$ 174 million, equivalent to 23.8% more.

Although this growth rate is lower than that of revenue, the central point is another one: professional football exceeded the budget by R$ 156.6 million, driven mainly by payroll, charges, and contract amortization. In other words, the club’s main area continued operating above the established limits, relying on extraordinary revenue to balance the books.

The total contribution margin was positive and above expectations, which helps explain the surplus, but does not eliminate the structural concern. There has been operational improvement and signs of progress in management, especially off the pitch, but the model still appears dependent on player sales at a high level in order to sustain itself.

In short, the financial statements combine real progress with significant weaknesses precisely in the main figures, both in terms of amount and importance.

The numbers allow for an optimistic reading, but they also justify caution, especially when the final result depends so heavily on variables that are difficult to repeat year after year, something current president Harry Massis Júnior has already said he is trying to change.

Despite the result being considered satisfactory, the trend is for the Council to reject the figures. In light of new facts that have become public, such as the disappearance of approximately R$ 7 million from the club’s coffers, allegedly earmarked for Casares and whose spending was never justified, pressure has increased for the rejection of the financial statements, including from opponents of the current chairman, such as the head of the body, Olten Ayres de Abreu.

The Deliberative Council’s decision does not certify the correctness of the figures, not least because the vast majority of councilors do not have the expertise for that. That role belongs to the Fiscal Council, which has already given its assessment: “Although the reports presented do not show formal accounting irregularities, relevant concerns remain regarding the budget execution of expenses, which was found to be inconsistent with the limits and parameters established in the approved budget.”

In this context, some even see a potential positive effect of a rejection under the current circumstances, as a sign of greater internal rigor. The view is that the market could interpret the move as an indication of oversight and accountability, and not necessarily as additional weakness.

There is also no immediate risk of losing tax benefits, a scenario that would only arise in the event of formal recognition of reckless management.

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