Capelo and Mattos examine Brazilian club debt crisis on FlamengoTV

Rodrigo Capelo, partner-director at Sport Insider, and Rodrigo Mattos, columnist at Uol, have long tracked the administrative and financial dealings of Brazilian clubs and their mounting debt. According to the 2025 report from the National Football Regulation and Sustainability Agency (ANRESF), Serie A's 20 clubs generated revenue of R$14.3 billion in 2025, up 32 per cent on 2024, whilst accumulating debt of R$17.3 billion, 15 per cent higher than the previous year.

"Brazilian football has more debt than revenue," Capelo summarised during his conversation with Rodrigo Mattos, also recognised for his investigations into club finances, on Em Nome do Jogo, the FlamengoTV show hosted by Diego Pose.

Capelo stressed that aggregate figures mask different realities. Flamengo appear with R$950 million in debt according to ANRESF's 2025 balance, yet have recorded R$2 billion in revenue. Palmeiras carry R$1.3 billion in debt against revenue of R$1.2 billion or R$1.3 billion.

"You have a debt of 10,000 reais, 100,000 reais. Is that a lot or a little? It depends. It depends on how much you earn, how much you spend on monthly bills and how much is left to pay your debt. Flamengo, for example, has 950 million reais in debt, but they brought in 2 billion in revenue. When far more money comes in than you owe, you're in a much more comfortable position to service that debt than other clubs are," Capelo noted.

Rodrigo Mattos cited Atlético Mineiro as an example of changing course. The club reduced banking debt, which sat around R$600 million and now stands at roughly R$100 million, following a substantial investment from the Menin family.

"Atlético had plenty of money because investors arrived, but they prioritised spending to improve the football side. The plan the investors made didn't deliver the results they expected. What are they doing now? They're reviewing that plan and seeking to resolve the debt before trying to grow the club. That shows how complicated football management is," Mattos said.

On judicial recovery for indebted clubs, Capelo explained that the mechanism suspends debt collection for six months and allows clubs to negotiate with creditors—all except government—simultaneously. The journalist cited Flamengo's criticism that clubs exploit the grace period to sign players. "Under financial fair play rules, clubs entering judicial recovery can only sign players for less than what the club receives from sales during the transfer window, but the rule only applies to those who entered after April."

"I think the restrictions currently in place for judicial recovery should be tougher, because it gives a huge advantage to the club that gets it. What we see internationally is that clubs in recovery lose points, sometimes get relegated. The trade-off here is far too light," Mattos added.

Capelo detailed the push by clubs for an extension on financial fair play deadlines. According to him, Santos is leading the request with backing from Botafogo, São Paulo and Corinthians behind the scenes. The rules prohibit new debt from 1 January 2026 and give clubs until November to settle existing obligations.

"Clubs did the maths and realised they can't reach December this year with that commitment honoured, despite creating the rule themselves last year. If we look back 20 years, Brazilian football takes two steps forward and one back. The game in 2026 is better than it was in 2015, which was better than 2005. In five years we could be in a much stronger position, but it will require us to stay vigilant," Capelo said.

Watch the full episode on FlamengoTV's YouTube channel: https://www.youtube.com/watch?v=DCOc8MK4wLw

How does Brazilian football generate ever-higher revenue while debt keeps climbing?

Rodrigo Capelo: "The figures are very broad—there are many different realities within them. But broadly speaking, what they tell us is that Brazilian football has more debt than revenue. It owes more than it earns, so it will struggle to pay."

How do you explain that contradiction?

Rodrigo Mattos: "At various points Brazilian football has seen significant revenue increases—TV contracts, outside investment. But you've never seen clubs structure themselves to capitalise on that revenue and achieve healthy growth. There was also the betting boom, which pumped money into clubs. The amount of revenue that comes in matters far less if the house isn't organised."

Where's the line between manageable debt and real concern?

Rodrigo Capelo: "The hardest thing is looking at that number in isolation. Flamengo has 950 million reais in debt, but they brought in 2 billion in revenue. When far more comes in than you owe, you're in a far more comfortable position to pay than other clubs are. Palmeiras, with 1.3 billion in debt, had revenue of 1.2 or 1.3 billion."

What does Atlético Mineiro show us about how Brazilian football operates?

Rodrigo Mattos: "Atlético didn't lack money, but it chose to spend only on the football side. The Menin family's plan didn't work out, and now they're seeking to resolve the debt before trying to grow the club. Bank debt was at 600 million and has fallen to around 100 million. It shows how complicated football management really is."

Is it hard for a director to tell supporters the club needs to tighten its belt?

Rodrigo Capelo: "They tell me and Rodrigo behind the scenes that this is the reality, but they can't even speak about it publicly, because people won't understand. We're not worried about debt figures, revenue or profit. We're worried about the team being competitive consistently. Only Flamengo and Palmeiras manage that at the top level of Brazilian football right now."

Where's the biggest problem among clubs?

Rodrigo Capelo: "It's with the mid-tier clubs financially who think they should be competing at the top. Fluminense, Santos, Vasco, Grêmio and Inter are getting dangerously indebted because they earn less and have less to invest, yet they spend as if they need to keep pace with Flamengo and Palmeiras. That's why they're going to collapse."

How do you build a culture of financial responsibility among supporters?

Rodrigo Mattos: "You have to build a culture in the fanbase—and Palmeiras and Flamengo have done this—by demonstrating the value of having your house in order and exercising restraint. At those two clubs, when there's a deficit at year-end, supporters and board members hold the administration to account. This culture can be built at any club, because no fanbase is special or different."

Is there any way to hold a director accountable for leaving debt to his successor?

Rodrigo Mattos: "It's starting to happen a bit. The São Paulo director is under investigation, and the Corinthians one was impeached. When financial fair play is fully enforced, there's also the possibility of sporting sanctions. There's an awareness being created, not overnight, but a path is being carved."

Why are clubs asking for more time on financial fair play deadlines?

Rodrigo Capelo: "Financial fair play rules state that from 1 January 2026, clubs cannot take on new debt. From January to November they have time to settle existing debt. Clubs did the maths and realised they can't reach December this year with that rule complied with. So they're already asking the CBF for an extension."

Does SAF ownership solve clubs' short-term management problem?

Rodrigo Capelo: "We long thought SAF ownership would fix this kind of issue. What we've seen is that even SAF-run clubs don't take a long-term view. John Textor didn't with Botafogo, 777 didn't with Vasco. Internally, what needs discussing is statute reform, director accountability, governance. It's still a question without an ideal answer."

How does judicial recovery work for a club?

Rodrigo Capelo: "It's essentially a debt suspension. When the court approves it, all collections are frozen for six months, and the club negotiates with all creditors at once—except government. Proposals typically involve paying an 80 per cent discount over the next 10 years. If creditors accept, the debt shrinks significantly and the club gets a repayment timeline."

Are the current restrictions on clubs in judicial recovery enough?

Rodrigo Mattos: "I think what's in place should be tougher, because judicial recovery gives such a huge advantage to the club that enters it. Internationally, we see clubs in recovery lose points, sometimes get relegated. The trade-off here is very small."

How important are financial fair play and the regulatory body?

Rodrigo Capelo: "Absolutely crucial. You need regulations, debt limits, limits on player costs, restrictions on signings, no arrears on salaries. When one indebted club multiplies the problem, cascading effects emerge: Santos owes Cuiabá and says it won't pay because other clubs won't pay them. The only way to fix this medium and long term is through self-regulation."

What's your outlook for Brazilian football in five years on governance, debt and revenue?

Rodrigo Capelo: "Football in 2026 is better than it was in 2015, which was better than 2005. In five years we'll be in a better position, especially if reforms—like referee professionalisation, a new calendar and proper financial fair play enforcement—are applied well. That doesn't mean there won't be plenty of absurdities along the way. It will require us to stay vigilant."