The graph showing the evolution of revenues and debts of the lion of Recife over the last 6 years.
Considering regular season revenues, such as TV broadcasting rights, sponsorships, game box office and membership fees, Sport’s revenue only fluctuated from 2022 to 2023, falling from R$75.0 million to R$72.9 million , with a variation of -2%. However, there was a “new fact”. Last year, the red and black management signed a contract with the Liga Forte União investor group and ceded 20% of its commercial rights for the Brazilian Championship for the next 50 years, valid from 2025. Other LFU affiliates did the same , such as Fortaleza and Ceará.
League contract corresponded to 63% of revenue
For this move with the league, the lion from Pernambuco received R$130 million. Thus, total revenue, without tax deduction, was R$206.2 million. Simply, the biggest in the club’s history. A value well above his longest period in Serie A in the era of running points. In the five years between 2014 and 2018, the highest revenue in the elite was R$129.5 million, in 2016. Updating this would give R$186.8 million, according to the Central Bank Calculator. Therefore, the 2023 revenue was Sport’s biggest, unquestionably.
For accounting purposes, the club has already “incorporated” the full transfer from the league. In practice, however, the club has only received R$32 million so far. According to Sport’s accounting statement, released at the end of the legal deadline, at 9:56 pm on April 30, the club will receive the remainder of the LFU, around R$98 million, in 2024. In fact, part of this money has already been used in assembly of the current squad, with R$17 million in the acquisition of economic rights for strikers Gustavo Coutinho, Barletta and Romarinho. And this boost to the balance sheet through the league’s money also served to break Sport’s negative writing.
Conversion of liabilities into long-term debt
After ten consecutive years of having more expenses than revenue in the current year, with a “deficit” in the final result, the club finally returned to recording a “surplus”, which is the positive balance in this subtraction. In this case, the surplus was R$71.9 million! This does not mean that Sport spent little. Far from it. The club’s cost jumped to R$130 million, an amount that would be unaffordable without the league’s funding. The cost of the cast, for example, grew from R$40 million to R$77 million. The expense of the entire football department was R$90 million, which, in a way, increases the frustration at the loss of access to the final stretch of Series B.
It is worth noting that this new Sport balance sheet, audited by the consultancy BDO, was the report with the greatest opening of data in recent years. So much so that it was possible to see the revenues sector by sector, both for 2023 and 2022 – it’s the basics, but it wasn’t being done. It is also possible to see a consequence of the ongoing Judicial Recovery, which is the negotiation with creditors to reduce the debt and establish payment deadlines. Therefore, a large part of short-term debts were converted into long-term debts. Thus, pending issues due within 12 months fell from R$215 million (!) to R$122 million. Those maturing in more than one year went from R$55 million to R$153 million in this conversion. In general, liabilities remained “stable”, although close to R$300 million.
Below, check out Sport’s recent revenue history.
Sport’s total revenue
2018 (Series A): R$ 104,098,716
2019 (Series B): R$39,208,327 (-62%; -64 million)
2020 (Series A): R$54,527,382 (+39%; +15 million)
2021 (Series A): R$94,131,145 (+72% +39 million)
2022 (Series B): R$77,537,146 (-17%; -16 million)
2023 (Series B): R$206,229,000 (+165; +128 million)
Result of the year (surplus/deficit)
2018 (Series A): -14,382,986
2019 (Series B): -22,644,360
2020 (Series A): -2,586,638
2021 (Series A): -70,284,816
2022 (Series B): -17,459,557
2023 (Series B): +71,999,000*
* The balance of the subtraction of net revenue (203.7 million) by operating costs (130.5 million) and financial expenses
Evolution of the club’s accumulated liabilities
2018 (Series A): R$ 193,439,749
2019 (Series B): R$ 189,540,801 (-2%; -3 million)
2020 (Series A): R$200,535,111 (+5%; +10 million)
2021 (Series A): R$258,049,760 (+28%; +57 million)
2022 (Series B): R$271,850,487 (+5%; +13 million)
2023 (Series B): R$276,144,000 (+1%; +4 million)
* The sum of short-term (current) and long-term (non-current) outstanding issues
Below, a comparison with four important fronts in the composition of revenue in professional football, present in the last four Sport balance sheets – and the respective series in BR.
TV broadcasting rights
2020 (Series A): R$40.90 million
2021 (Series A): R$68.96 million (+68%; +29 million)
2022 (Series B): R$15.23 million (-77%; -53 million)
2023 (Series B): R$19.53 million (+28%; +4 million)
Supporter membership table
2020 (Series A): R$4.47 million
2021 (Series A): R$3.24 million (-27%; -1 million)
2022 (Series B): R$4.17 million (+28%; +0.9 million)
2023 (Series B): R$12.61 million (+202%; +8 million)
Income in games
2020 (Series A): R$4.28 million
2021 (Series A): R$17.08 million (+299%; +12 million)
2022 (Series B): R$11.14 million (-34%; -5 million)
2023 (Series B): R$16.60 million (+49%; +5 million)
Sponsorship/Marketing
2020 (Series A): R$7.66 million (+67%; +3 million)
2021 (Series A): not detailed
2022 (Series B): R$13.68 million (n/a)
2023 (Series B): R$17.46 million (+27%; +3 million)
Read more about the subject
Sport projects its biggest budget in Series B and expects new transfer from the league in 2024
Study names Sport among the 20 most valuable clubs in Brazil; see the ranking
Tags: Sports balance sheet record revenue surplus years league ..
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