February 10 – Brazilian club Flamengo is seeking a €5.3 million loan to provide working capital for the start of the 2021 season.
The club’s board will vote to sanction the loan, which is a fundamental underpinning of the club’s budget this year. The expectation was that that Flamengo would clear all its bank debts by the end of this year, but the new loan will put a new strain on finance. How the repayment of the loan will be restructured remains to be finalised.
Flamengo is however adamant that it won’t need to raise any further money this year, even though revenue will remain limited due to the coronavirus pandemic. The club aims to bring in €22 million from player sales.
Last year, Brazilian clubs suffered because of a significant drop in matchday revenue, which is key to their operations and cash flow. The Rio club has debts in excess of 700 million reais (€107 million).
With four match days left in the Brazilian Serie A, Flamengo are locked in a battle with Internacional at the top of the table. Rogerio Ceni team have 65 points, one less than the club from Porte Alegre.
Contact the writer of this story, Samindra Kunti, at moc.l1614303302labto1614303302ofdlr1614303302owedi1614303302sni@o1614303302fni1614303302