Atlético-GO Funds by 2021: Incomplete with effective account balances, still lack consolidation funds | sports business

– We have to be very balanced. Atlético can not be happy with anything, I am not happy with anything. […] Today we are respected everywhere because we have credibility, we are a club that does not give us money. […] I am sure that five or ten years from now we will be one of the biggest fans in the Midwest region.

Talking about balance, financial decision and long-term vision is not uncommon among high-end hats. Nor is it common for conversations to go hand in hand with practice. In fact, Atlético-GO does a good job off the field.

In this content, ge goes through the numbers in the most recent financial statements, referring to 2021. A fan can find reasons to be optimistic about them, despite the apparent problems.

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+ Rodrigo Capelo column: How not to get involved in financial matters? The solution to unconventional numbers is to ask questions

Atlético-GO Finance – Photo: Infoesporte

Promoted to the first tier by 2020, Atlético-GO has managed to expand its revenue and remain in the national football elite, without taking on more debt than it could.

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

Although the revenue of 2021 has been boosted by values ​​that have been postponed since 2020 – the award from the Brazilian Championships that ended the following year -, the growth that the Goiás club has achieved is staggering.

The relationship between Atlético-GO revenue and debt

Source: Financial statements

Atletico’s revenue structure presents two stories: details of improvements and challenges now and in the future. Both for the same reason. Advertising rights have increased, but still contribute to almost all of the club’s revenue.

In 2021, the media accounted for 88% of revenue. This line includes transmission and rewards. Arriving in the first division was the first reason for the change. Later, the club could improve its financial performance if it continued further in knockout competitions.

It is worth noting that this source was contributed by the values ​​referring to 2020, which was postponed to the 2021 equity sheet, because Brasileirão ended the following year because of the catastrophe. Either way, the picture would not have been so different by giving a few million.

Atlético-GO Revenue Profile in 2021

Source: Financial statements

In some layers, problems appear. The trade and marketing department, funded and licensed, still produces very little for a club with first-class financial needs. There was only R $ 3 million available in 2021.

Revenue directly linked to fans, such as ticket sales and supporters, is close to zero. In part because of the tragedy, which prevented the opening of facilities for much of the year. Also because there is an urgent need to train fans and engage those present.

Referral athletes participate less in pay. Less than 4 million BRLs were received in 2021. Atlético-GO did not get more than that – the peak was 13 million BRL in 2018, adjusted by the IPCA to submit value to reduce the effects of inflation.

Throughout the text about money, ge makes comparisons between budget and financial statements. The idea is to keep track of the estimates made by the directors and the results obtained after one year. In this case, it will not be possible. The club does not publish the budget.

The calculation passed by ge for debt calculation is simple: everything that the club will need to pay, less than what is available in cash. And Atlético-GO is doing very well, especially when its responsibilities are scheduled based on payment deadlines.

Since the party had R $ 23 million in bank accounts, at the closing date of its balance sheet, this amount is sufficient to pay off all short-term debts and they still have surplus.

That is why, in the chart below, the short-term ratio is set to zero. The club started in 2022 with cash to cover all costs that would be levied throughout the year – something that is rare among clubs. It is the only long-term debt remaining, repayable from 2023 onwards.

Atlético-GO debt profile for maturity

Source: Financial statements

Depending on the nature of these obligations, Atlético-GO does not have any loans from banks or financial institutions. Some of the balance was provided by Banco Daycoval to plan the cash flow. Nothing to worry about.

The natural responsibilities of the work, for the most part, are related to the present. If the club promised a bonus to the players based on the results, what remains to be paid at the end of 2021 is seen as a debt to be paid in 2022. The issue of accounting.

The association has no debt related to the purchase of federal and economic rights from the players, due to its financial and philosophical limitations implemented in football.

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

Atlético-GO debt profile according to type in 2021

Source: Financial statements

In the run-up to its third consecutive Brasileirão in 2022, Atlético-GO is one of the most popular and one of the most successful regimes in the country – in terms of achieving good results by spending less money. The question mark is the sustainability of this project.

With R $ 57 million spent on salaries last season, based on salaries, staff salaries and other tariffs linked to player salaries, the Goiás club is still at a clear loss compared to its rivals in the first division.

The party would need to double or triple its spending to deal with competitors like Ceará, Fortaleza and Athletico-PR equally, in the financial sphere. This expansion is a medium-term goal.

How to get there, however, with such a small income? Advertising rights and awards have little chance of expansion, something that can only change with the league of clubs and the sale of first division league rights. Markets, fans and athletes certainly need to produce more. Adding bills to these methods takes time.

In summary, this is the state of Atlético-GO. The initial success sent the club to Brasileirão and allowed it to grow. At present, efficiency will need to be maintained, so that mitigation does not put this process at risk. In the future, there is still a lack of money to provide more peace of mind.

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