Atlético-GO Finance in 2021: Balance in Account Performance and Balance, Still Lacking Funds for Stability | Sports business

– We have to be very balanced. Atletico can’t get excited about anything, I never get excited about anything. […] Today we are respected everywhere because we have a reputation, we are a club that does not throw money. […] I am sure that five or ten years from now we will be one of the biggest fans of the Midwest.

It is not uncommon for top hats to talk about balance, financial decisions and long-term vision. Nor is it common for conversation to be associated with practice. In fact, Atletico-GO does a great job off the field.

In this material, ge 2021 refers to the numbers included in the recent financial statements. Fans can find reasons for hope in them despite the obvious difficulties.

+ 2021 Brazilian football financing: revenues rise again, but clubs still face debts and crises

+ Rodrigo Capello’s column: How not to get involved in finance? The solution to irrelevant numbers is to ask questions.

Atlético-GO Finance – Photo: Infoesporte

Developed in the First Division in 2020, Atletico-GO has managed to increase its revenue and stay in the national football elite, without having to borrow more.

The message is clear in the table below, which compares the revenue (everything collected in each year) to the debtor (everything that has to be paid on the last day of each year).

Although revenue for 2021 has increased since 2020 due to deferred values ​​- the Brazilian Championship Awards that just ended next year – the Goiás club has made significant progress.

The relationship between Atletico-GO’s income and debt

Source: Financial Statements

Atletico’s revenue structure presents two stories: an explanation of growth and present and future challenges. Both for the same reason. Broadcast rights have increased, but they still make up almost all of the club’s revenue.

In 2021, the media accounted for 88% of revenue. This line includes transmissions and awards. Arrival in the First Division was the first element of change. After that, the club can improve its financial performance if they go further in knockout competitions.

It is important to keep in mind that this source was enhanced by the values ​​referenced in 2020, postponed to the 2021 balance sheet, as Brasileirão was depleted the following year due to an epidemic. Either way, subtracting a few million won’t make the picture any different.

Revenue profile of Atletico-GO in 2021

Source: Financial Statements

Other columns show difficulties. The commercial and marketing department, along with sponsorship and licensing, still generates very little money for the first division club with financial needs. In 2021, only R $ 3 million was collected.

Revenue directly from the audience, such as ticket sales and support, reached almost zero. Partly due to an epidemic, which prevented the stands from opening for most of the year. There is also an urgent need to train the audience and engage the audience.

Athletes rarely participate in transfer billing. In 2021, BRL received less than 4 million. Atlético-GO has never received more than that – the peak BRL was 13 million in 2018, which was adjusted by the IPCA to offer a price to mitigate the effects of inflation.

In all texts on finance, ge compares budget and financial statements. The idea is that the estimates made by the directors and the results obtained a year later should be presented in parallel. In that case, it would not be possible. The club does not publish a budget.

The calculation adopted by ge for the calculation of debt is simple: everything that the club will need to pay, less than what is available in cash. And Atletico-GO works great, especially when its obligations are sorted out by the due date.

Since the association had R $ 23 million available in bank accounts, at the end of its balance sheet, this amount is sufficient to repay all short-term loans and it still has surplus.

Therefore, in the chart below, the short term amount is set to zero. The club started 2022 with cash to cover all the charges that would be incurred throughout the year – a rare fact among clubs. Only long-term debt remains, which is repayable from 2023.

Atlético-GO’s loan profile by maturity

Source: Financial Statements

Depending on the nature of these obligations, Atlético-GO has virtually zero loans from banks or financial institutions. Some credit was taken with Banco de Koval for managing the cash flow. Nothing to worry about

Wages of the nature of labor are, for the most part, related to the present. As the club promised to give bonuses to the players based on the results, what was left to be paid at the end of 2021 appears as a loan to be paid in 2022. Accounting problem

Due to its financial limitations and the philosophy applied in football, the association does not have any debt related to the purchase of federal and economic rights from the players.

The only debt that is “discovered” (in the sense that there is no cash available to pay it off) is a tax debt. Atlético-GO has money in installments with the government through Profut, which will need to be paid over the next few years. There is nothing to fear from either side.

Atlético-GO’s loan profile by type in 2021

Source: Financial Statements

For the third time in a row in 2022, for the third time in a row for Brasileirão, Atlético-GO has the most efficient administration in the country – in the sense of achieving good results with little money. The question mark is on the sustainability of this project.

With ، 57 million spent on payroll last season, considering salaries, labor charges and other taxes related to players’ compensation, the Goiás club is still in clear deficit compared to the opponents it faces in the First Division. ۔

The association will need to double or triple its spending in order to compete financially, on an equal footing, with rivals such as Ceará, Fortaleza and Athletico-PR. This expansion is a medium term goal.

However, how to get there with such a limited income? There is little scope for expansion of broadcasting rights and awards, which can only be replaced by the sale of club league and next first division rights. Marketing, fans and players definitely need to create more. It takes time to increase billing on these lines.

This is the situation of Atletico-GO. Past successes have taken the club to Brasileirão and allowed it to grow. For now, performance will need to be maintained, so that shortages do not jeopardize the process. For the future, there is a lack of money to give a little more peace of mind.

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