Official Statement - Financial Fair Play

Clube de Regatas do Flamengo has been actively participating in discussions about the Football Sustainability System (SSF), a Brazilian model of Financial Fair Play, conducted by the commission established by the CBF (Brazilian Football Confederation). 

With the aim of contributing to the improvement of governance and sustainability practices in Brazilian football, Flamengo has submitted, in writing, its detailed position to the responsible committee. Flamengo's commitment transcends the numbers, dedicating itself to the sport, fair competition, and Fair Play that represents the true principles of football. 

Some proposals presented by the Club: 

• Treatment of clubs in RJ/REJ (Judicial Reorganization/Simplified Judicial Reorganization): prevent clubs from using the period of non-payment of debts (between the declaration of RJ/REJ and the approval of the agreement) as a competitive advantage, blocking the registration of new athletes during this period and resulting in the loss of points.
• Broad definition of costs: controlling not only the "payroll" (CLT), but also the total cost of the roster, including image rights, signing bonuses, bonuses, agent commissions, and taxes.
• Blocking accounting loopholes: preventing the costs of men's professional soccer from being "disguised" as investments in youth categories or women's soccer through fictitious allocations.
• Minimum cash flow control: Implement leading indicators, such as the need for healthy working capital, to prevent liquidity crises.
• Related party transactions: disregard or limit transactions between related parties (e.g., a club and a company with the same owner) that may inflate revenues or conceal costs. Capital contributions, for example, should not be accounted for as recurring revenue.
• Use of ratings: adopt a rating system (such as that used by specialized consultancies), in which clubs with better management (high rating) have more room for maneuver, creating an incentive for good governance.
• Effective sanctions: focus sanctions on restricting transfer windows, and ensure these are fully enforced, even if the cause of the punishment is resolved, to discourage procrastination.
• Implementation of the "Owner and Manager Test": creation of an evaluation comprised of rules and criteria to determine if new (or potential) club owners and managers are fit for the role. The objective is to protect the image and integrity of the competition and the clubs, ensuring that individuals who manage or acquire clubs are trustworthy and have proven financial capacity. 
• Effective Feasibility of the System: implement a governance structure equipped to execute automatic penalties, based on factual and financial data, including the application of penalties and restrictions. 
• Ban on Artificial Turf: Plastic turf should be immediately eliminated from all professional national tournaments. The discrepancy in maintenance costs between natural and artificial turf creates financial imbalances among clubs and harms the physical health of players and athletes.

Clube de Regatas do Flamengo will continue to participate in the development and implementation of the Football Sustainability System (SSF), as proposed by the Brazilian Football Confederation, and congratulates the organization on this commendable initiative.

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