Flamengo released this Thursday (01), the financial balance of 2020. What was expected was confirmed in the numbers presented by the club, which is the impact on the collection with box office, stadium and partner-fan because of the stoppage of football activities by account of the coronavirus pandemic. In an open letter, the representative, Rodolfo Landim, said that this was the most significant effect.
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“Particularly for the sports segment, the most significant impact was represented by the cancellation, paralysis and postponement of competitions around the world, as well as by the prohibition and impossibility of the public’s presence in the stadiums ”, said the president in an excerpt from the letter.
Looking at the play, in the “Gross Recurring Operating Revenue”, in which the transfer of athletes is not counted, Flamengo had a subtraction of R $ 117 million compared to 2019. In the “magic year”, Mais Querido collected from the Ticket Office, Partner-Supporter, Stadium, Social, Sponsorships and Licensing and Transmission rights and prizes, R $ 651 million. In 2020, R $ 534 million.
If you consider the collection with the transfer of athletes, the difference increases. It goes from R $ 117 million to R $ 194 million. In 2019, Rubro-Negro almost reached R $ 1 billion in revenue, something unprecedented in Brazil. There were R $ 950 million in total. In 2020, R $ 756 million.
“Inevitably, a relevant part of our turnover was impacted, notably by the postponement of competitions, the absence of an audience in the stadiums and the reduction of resources available in the Brazilian advertising market. Despite this, we have reached a very high level of revenue by the standards of the Brazilian market“, Says Landim in another section.
But not just numbers, said the president. In addition to highlighting investments in the football department, he recalled the titles he won last year: Supercopa do Brasil, Recopa Sul-Americana, Carioca and Brasileirão. The representative also spoke of the engagement achieved on the club’s social networks, which includes FlaTV, the third largest club channel in the world. Social actions developed throughout the year were also highlighted.
CHECK THE LANDIM RODOLFO LETTER IN INTEGRA:
“LETTER FROM THE CHAIRMAN
2020 will be remembered as a year of enormous difficulties for our life in society. The health crisis triggered by the COVID-19 pandemic, which hit us suddenly at the beginning of the year, continues today with no precise forecast of cooling.
Particularly for the sports segment, the most significant impact was represented by the cancellation, paralysis and postponement of competitions around the world, as well as by the prohibition and impossibility of the public’s presence in the stadiums. In addition, it was necessary to define and implement new procedures to ensure health protection for employees, athletes, suppliers and other parties involved in the organization of sporting events and in the day-to-day operation of sports entities. As one of the leaders in the sector, the Clube de Regatas do Flamengo played an important role in this process, having contributed to the discussions regarding the prevention protocols adopted in national and South American competitions and worked tirelessly to minimize the effects of the crisis, in the sporting spheres, corporate and social.
In this sense, the contingency plans developed to mitigate the risks to the Club’s finances and, mainly, to the health of our employees, members and athletes guided our actions and decision-making throughout the year. Despite the strong pressure brought by the external scenario, our economic, financial and sporting results for 2020 show a commitment to management efficiency in all our activities. Inevitably, a relevant part of our turnover was impacted, notably by the postponement of competitions, the absence of an audience in the stadiums and the reduction of resources available in the Brazilian advertising market. Despite this, we achieved a very high level of revenues by the standards of the Brazilian market and maintained our level of indebtedness at levels compatible with our ability to pay.
The economic crisis, therefore, did not interrupt our strategies for strengthening the brand and increasing competitiveness; on the contrary, we continued with investment plans related to the modernization of our facilities, innovation, digitization and content production and technical qualification of our Football squad, not only by contracting and renewing top athletes but also by investing in our categories. grassroots – 13 athletes trained at the Club were promoted to the Core Team during the year.
On the pitch, in addition to the unpublished titles of Recopa Sul Americana and Supercopa do Brasil, we won the Brazilian Championship and the Carioca Championship for the second consecutive year, reaffirming our national and international strength.
Throughout the year, we also followed the top in the rankings of followers and engagement of social networks and reinforced our position as the largest media platform in South American football and one of the largest in the world, with 892 million interactions on the main platforms. In addition, in a year marked by lives in digital media, FlaTV surpassed the mark of 6 million subscribers and occupied the position of the third largest Club channel in the world, behind only Real Madrid and Barcelona.
Despite the cancellation of most competitions and events of all sports in the year, we continued the Olympic Sports development activities, with emphasis on projects to increase revenue and reformulate sports equipment and facilities and technical training initiatives for our professionals and technological innovation focused on sports. As part of what we planned, we are convinced that through the gradual return to the normality of the sports competition calendar, we will return in the coming years to celebrate red black achievements in the lanes, swimming pools and gyms around the world.
During the shutdown of activities at our headquarters, we prepared ourselves so that the resumption of the Club’s operation, after authorization from Organs competent bodies, would take place safely for athletes, members and collaborators, according to strict health protection protocols based on the Rules of Gold from the Rio de Janeiro City Hall. In addition, with the significant reduction in the circulation of people in Gávea, gymnasiums, swimming pools and the synthetic field underwent renovations and maintenance, and even with the limitations imposed, we maintained our partner and student base in sports schools without significant changes.
In an attempt to combat the socio-economic impacts of the pandemic, we have also entered the field to reach places where housing and infrastructure conditions are precarious and basic services are lacking. We celebrated a partnership with Viva Rio and launched the Nação Solidária campaign, to distribute basic food baskets, food cards, hygiene and cleaning products, protective masks and gel alcohol to about 5,000 families, people on the street, informal workers of Maracanã and male and female soccer athletes from clubs of Series B1 and B2 of the Carioca Championship.
Despite all the impacts caused by the pandemic, the Club has not failed to honor its financial commitments to its employees, suppliers and other business partners. Likewise, we kept our labor, social security and tax obligations up to date, having disbursed approximately R $ 41 million in the year to pay taxes and charges.
Beyond the preservation of financial health and the ability to pay, the need to respond to the challenges imposed by the pandemic was reflected, more than ever, in our commitment to generate positive social changes, transforming values into actions.
President of the Clube de Regatas do Flamengo“
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