Massis under fire, Council may reject São Paulo accounts, a first | OneFootball

Started last Wednesday (25) and lasting until the end of this afternoon, the vote on São Paulo’s 2025 financial statements went beyond accounting analysis and came to be treated as a decision with possible institutional and financial effects.

Harry Massis Júnior’s administration worked for the approval of the accounts of the previous administration, led by Julio Casares, who resigned from the position after being removed in January.

The maneuvering included intense conversations within the Deliberative Council, amid a politically tense environment.

In light of new facts that became public, such as the disappearance of approximately R$ 7 million from the club’s coffers, allegedly intended for Casares and whose spending was not justified, pressure grew for the rejection of the financial statements, including from opponents of the current president, such as the head of the Deliberative Council, Olten Ayres de Abreu.

According to the UOL portal, Olten had a heated argument with Massis last Wednesday and advised political allies to vote against the accounts, even though they were closed under Casares, his most loyal ally.

The situation is worrying for Massis because the optimism of Wednesday afternoon no longer exists in the face of the growing mobilization to reject the accounts. If the forecast is confirmed, it will be the first time in history that the tricolor Council rejects the accounts presented by the sitting president.

On the administration’s side, the main argument is market-related: rejection could affect the club’s institutional image, impact its credit rating, and make financial operations more expensive, such as loans for working capital or fundraising.

In an already pressured scenario, any negative sign could increase the cost of money and further restrict access to credit.

Asked about it, the club limited itself to saying that it “always seeks the best market options for its financial operations.”

The opposition, in turn, has a different reading. Some council members believe that rejection would have limited practical effect in that field, since the club faces historic financing difficulties and already operates with high interest rates.

In the view of these interlocutors, the major banks do not see São Paulo as a priority borrower for reasons that go beyond the formal approval of a financial statement.

In addition, the decision of the Deliberative Council does not certify the correctness of the numbers, not least because the vast majority of council members 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 possible positive effect from 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 hypothesis 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.