Brazilian football clubs’ debt now $1.85 billion

May 23rd, 2012 - 3:50 pm ICT by IANS  

Rio de Janeiro, May 23 (IANS) Brazil’s First Division football clubs have a combined debt of $1.85 billion, according to an audit by consultancy firm BDO.

Four of Brazil’s top five debt-stricken clubs are from Rio de Janeiro, with Botafogo’s $270 million deficit placing the entity in first place, reported Xinhua.

Fluminense is next ($194 million) followed by Vasco da Gama ($185 million), Atletico-MG ($176 million) and Flamengo ($170 million).

Santos is the only club to have a positive balance in the past 12 months, having cut its deficit from $101 to $99 million.

The clubs’ overall debt increased by 19 percent year-on-year, according to the report.

“Clubs are accumulating debts to pay salaries,” BDO consultant Amir Somoggi told Globoesporte.

“They aren’t investing in marketing, stadiums or building relationships with fans. They are assuming high interest rates to finance an activity which has no projected return.”

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