Now yes, now no: São Paulo board rejects 2025 accounts 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 result was even more unfavorable for the Tricolor president, since on Thursday (26) the tally was 194 votes against and 34 in favor, with five abstentions.

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

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

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

Within the club’s political environment, 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, recording the process 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 was treating the case “with the utmost responsibility.”

The company also guaranteed that “the case is undergoing a review of 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/or internal regulations, which must govern the acts of this Council, I hereby order the reopening of the voting process so that the votes may be duly collected with proper nominal identification,” the official 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 maintained, even if the new tally may vary. The current administration, led by president Harry Massis Júnior, argues that this result will impact 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 another vote on credit operations, although both have already been carried out: one in December, worth R$ 30 million with Banco Tricury, at interest of CDI + 0.75% per month; and another last month, worth 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 a 2025 financial statement that, at first glance, draws attention because of the absolute numbers: record revenue of R$ 1.085 billion (up 47%) and a return to surplus, of 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 the reduction of net debt to R$ 858.2 million, about R$ 110 million less than the previous year.

There was also progress in the use of Morumbi, whose revenue grew 61.8%, signaling advances in asset management.

But the picture is far from that simple, and that is precisely where the internal resistance to approving the accounts is rooted. 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, nearly double what had initially been forecast.

By definition, this is non-recurring and highly volatile revenue. Without this above-the-curve market performance, the final result would not be positive, and the club would remain in the red.

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

Although this growth percentage is lower than revenue growth, the central point is another: professional football exceeded the budget by R$ 156.6 million, driven mainly by payroll, charges, and contract amortizations. In other words, the club’s main area continued to operate above the established limits, depending 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 is 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 summary, the financial statements combine real progress with important 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 numbers. 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 never justified, pressure increased for the rejection of the financial statements, including from opponents of the current president, such as the head of the body, Olten Ayres de Abreu.

The Deliberative Council’s decision does not certify the correctness of the numbers, 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 non-compliant 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 interpretation is that the market could see the move as an indication of oversight and accountability, and not necessarily as an 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.