(photo: Pedro Souza/Atlético)
Through the transformation into Sociedade Anônima de Futebol (SAF), completed in November 2023, Atlético was able to significantly reduce the largest debt among Brazilian football clubs. In contact with the report On Attackeconomist Cesar Grafietti, a specialist in sports finance, said he sees Galo’s scenario as “less dramatic”, but warned about the future of the club-company.
In the financial statement released on April 29, Atlético detailed the reduction in debt following the transformation into SAF: in approximate numbers, outstanding debts fell from R$2.1 billion to R$1.3 billion at the end of 2023. The club continues to fight against onerous debts – the most harmful to finances, as they have aggressive interest rates –, valued at around R$465 million at the end of last year (with R$145 million in short-term debts).
When breaking down the document released by Galo, Cesar Grafietti highlighted three points for analysis. They are: club expenses, hiring policy and debts.
“Poor performance: revenues even grew timidly, but they continue to operate with a very high level of costs and expenses; they continued with a policy of lots of hiring – which could only be done by transforming into SAF, which was fundamental in reducing debts; These debts amounted to billions and ended the year at R$900 million, a reduction of more than R$500 million. Fruit of SAF and the sale of what was left of the mall [Diamond Mall].”
Cesar Grafietti, sports finance specialist
Grafietti raises questions about Atlético investors
Atlético’s SAF has a Board of Directors, but has five investors from Minas Gerais as the most important figures in defining the club’s direction. They are: Rubens Menin, Rafael Menin, Ricardo Guimarães, Renato Salvador and Daniel Vorcaro.
In the report, Grafietti highlighted the need for new contributions so that Galo continues on the path to financial self-sufficiency. The economist raised questions in this regard.
“Debt reduction [foi o ponto a se destacar do balanço]. But the future is challenging. There is still a lot of money to be contributed. How big is the momentum and interest of shareholders? This is the question that remains”, he asked.
Finally, the specialist positively assessed the direction that the black and white club-company has taken in recent months. “It is still too early to understand what the behavior will be from now on, but it is clear that the scenario has become less dramatic. There is still a lot of money to be invested to definitively balance the club, but the scenario is positive. Without new money, the process tends to be slow and requires very controlled management of expenses”, he pointed out.
Atlético’s Deliberative Council has already approved the entry of a new contribution to the SAF, in the amount of R$200 million – on the initiative of banker Daniel Vorcaro. On April 29, Bruno Muzzi, CEO of Galo, mentioned that the processes for injecting these resources into the black and white fund were in the final phase, and the money will be invested throughout 2024.
“This year, the forecast is investment from Vorcaro and FIGA (Galo Investment Fund). We intend to complete a good part of FIGA this year. But Galo is always open to new investors, because we still have a very high debt and, if we have new contributions, it will always be welcome.”
Bruno Muzzi, CEO of Atlético
