Brazilian Football Revenue Source

The Look Crônico Esportivo blog has compiled the Brazilian club balance sheet data into a single table. The table is below:

The data show differences between the business models of the clubs. Corinthians, Flamengo and SPFC, for example, have a large revenue stream on TV, while for Grêmio and Coritiba, for example, fans’ income is the highest. International, SPFC and Fluminense, complemented the revenues with strong revenues from federative rights.

On average, the 17 largest clubs (in revenue) raised R $ 157 million in 2012. About R $ 109 million in operating revenue. Of the latter, the average proportion was: 60% TV, 20% marketing, and 20% box office, supporter and stadium partner. Operating revenue was 69% of the total and the remainder was divided among federal, 16%, and other revenues, 15%.

Club revenues vary greatly from year to year, depending on the campaign, TV contracts, having a player with potential sales, etc. But one of the most stable sources of income is membership (column 3).

In this regard, clubs seem to be waking up to revenue potential and have invested heavily. In particular, Corinthians and Atletico have grown a lot in the last year, and 2013 seems to be the year that Flamengo will wake up to this source of revenue.

The site  gives discounts to club members. In it, the numbers of deputies of each club are available. Below is the ranking of 12 / May:

The Grenal duo leads the ranking of full-fledged supporters, followed by Corinthians and Santos. Pioneers in the partner-fan program, the Grenal duo only lost in this regard to the SPFC, which despite having 21,600 full-time members, raised 65 million in 2012. This shows the potential of the box office in the city of São Paulo and also the property of Morumbi.

This leads me to infer that Corinthians, after completing its stadium, will lead this type of revenue with leftovers. Flamengo, with the return of Maracanã, will have great collection potential.

The trend, in my opinion, is that fans will help counterbalance the effects of TV contracts, which tend to favor Flamengo, SPFC and Corinthians, at least in national contracts.

The interesting thing is to note that the second column, marketing, is not so correlated with the third. The correlation of the first 17 is 0.36. Positive, but not as high as I’d expect. Already the correlation between cheer (adimplentes) and marketing revenue is 0.56. This means that marketing revenue is very much linked to the number of fans. More until that with the recipe of this crowd. Here I used only 14 clubs, because Goiás, Atlético-PR and Coritiba are not in the Best Football program.

The numbers show the revenue potential of the partners and marketing is great. Now, more professionalism and action will be required to bring fans closer to the clubs. Seriousness with partner money and in-field performance will be critical for clubs that have lower TV revenue.

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