Brazil's clubs 'must invest in new income streams'

Brazilian clubs must invest in new income streams not linked to results on the pitch if they want to ensure financial stability, marketing specialist Amir Somoggi commented on the release of the annual Lista Casual Auditores de Clubes which details financial information on Brazil's 21 leading football clubs. The biggest income generating clubs this period are Sao Paulo (US$64 million) and Internacional (US$56 million) - the League Champions and Copa Libertadores and World Club Cup champions respectively. “The clubs depend on their players scoring goals to be champions and consequently raise their income,” Somoggi told Maquina do Esporte as reported by Soccer Investor. “What stands out for me is the royalties that Sao Paulo bring in. Even with difficulties like piracy and low interest in official products they have managed a 173 percent increase in income in this area, totalling US$2 million. This is marvellous.”

According to Santos marketing projects manager Dagoberto dos Santos, the increase in income is "part due to gate receipts" which are "proportional to results on the pitch. If the team does well they are accompanied by their fans. When that is not the case there is a certain distance between the club and its supporters. The other points, like selling licensed products, franchises and shirt sponsorship deals, depend on the weight of the club’s brand. But performance always helps.”

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