association points to record surplus and reduces debt to R$750 million < In Attack

The portal On Attack had access to the financial balance sheet for the 2023 financial year sent by the Cruzeiro civil association to the councilors this Friday (26/4). The club posted a record surplus and reduced its debt from R$1.052 billion in 2022 to almost R$750 million at the end of last year.

The report had the help of economist Cesar Grafietti to interpret the numbers presented in the document. According to the expert, the calculation to reach the debt of R$749.2 million is the sum of the following factors:

• Taxes and Contributions in Installments: R$ 235.8 million
• Judicial Recovery: R$467 million
• Taxes and Installments: R$32 million
• Labor Obligations: R$12.9 million
• Accounts Payable: R$1.5 million

The balance sheet, which will be assessed by the Deliberative Council this Tuesday (30/2), at Parque Esportivo do Barro Preto, in Belo Horizonte, only takes into account the association’s accounts. The financial performance of Sociedade Anônima do Futebol (SAF), led by businessman Ronaldo Nazário, will be presented separately in another document.

According to Grafietti, the drop in the value of the debt is directly related to the agreements of creditors registered in the Judicial Recovery. This is because Cruzeiro managed to reduce the amount to be paid by R$363 million.

“The Judicial Recovery debt is R$467 million. The previous one, still pre-Judicial Recovery, was R$830 million. It must have increased due to contingencies, which justifies the reduction and surplus”, he explained.

Contingencies in this case are provisions for expenses that were projected for the future, removing the responsibility for deductions in the 2023 balance sheet.

Debt evolution from 2017 to 2023

• 2023: R$750 million
• 2022: R$1.052 billion
• 2021: R$970 million
• 2020: R$898 million
• 2019: R$804 million
• 2018: R$533 million
• 2017: R$371 million

List of Cruzeiro creditors

In the following tables, see the list of Cruzeiro’s creditors – and the amounts owed by the club.

Cruzeiro has a record surplus

The celestial club’s debt is still high – one of the largest in Brazilian football – but the reduction is positive. In this scenario, the club had a record surplus of R$591.4 million.

“In the Judicial Recovery, the club released all creditors with the new values ​​after the proposal. And this means that there was a reduction in debts, which became smaller. The difference between the original debt and that from the Judicial Recovery enters the income statement as revenue and, therefore, generates this huge surplus”, concluded Grafietti.

Cruzeiro judicial recovery

Cruzeiro’s judicial recovery plan was approved by the Court in August last year. The association is committed to paying what was established with creditors and estimated to pay more than R$90 million by the end of 2025.

Over the next 18 years, the forecast is for a transfer of R$467 million (updated value of the debt after RJ approval) to pay the obligations.

SAF financial statement

SAF’s 2023 financial statement must also be reported by May. Last year, Ronaldo’s company showed that the first year of operation at the club (2022) saw millions in revenue, but also a large loss.

According to the documents, SAF had gross revenue of R$150.3 million (R$146.1 million after deducting taxes and contributions) and losses of R$24.6 million.