sport club corinthians paulista

52
2011 was marked by sowing. it was a year of reformulations
in youth football, of heavy investments in infrastructure
for and of renovation of the social facilities. the seeds
were planted to ensure a good harvest in the near future
total revenue
Corinthians ended 2011 with excellent results, both on the
field and in its administration. The positive performance
is reflected in the Club’s total revenue, which reached
R$ 290.5 million in 2011, up 37% when compared to 2010.
Since 2008, revenues have increased by 147%. When
compared to 2007, this increase was 117%.
sport club
corinthians paulista
evolution of revenues
(in Millions of brazilian reais)
133.7
2007
117.5
181.0
212.6
290.5
2008 2009 2010 2011
record ticket sales
Corinthians fans were present in large numbers in Pacaembu
Stadium in 2011, with record-breaking attendance during the
Brazilian Championship. The average turnout was of 29,329
supporters per match, which resulted in a total of 557,200
supporters. The attendees generated R$ 192.2 million in the
A Series, higher than the figures registered by clubs SPFC and
Bahia, ranked second and third, respectively.
When comparing Corinthians's ticket sales to those of the three
other clubs from São Paulo and the teams from Rio de Janeiro
with the largest ticket sales in the A Series in 2011, the difference
in numbers is clear: the combined revenue originating from ticket
sales of the four teams from São Paulo totaled R$40.4 million.
A comparison with clubs from Rio de Janeiro produces a
similar result. Together, the three teams from Rio de Janeiro with
greatest ticket sales generated revenues of R$ 40.7 million.
revenues from
sources other than
transfers of athletes
The evolution of revenue, not considering the transfer of
athletes, can be considered a true business model in the Brazilian
and global football segment. The Club made R$ 230.8 million
in revenue from sources other than the transfer of athletes, up
270% when compared to 2007 (R$ 62.3 million).
evolution of revenues froM sources other than
transfers of athletes (in Millions of brazilian reais)
62.3
2007
CORiNThiANS
48%
90.7
151.1
177.7
230.8
2008 2009 2010 2011
CORiNThiANS
47%
santos
9%
palMeiras
15%
são paulo
28%
fluMinense
14%
vasco
19%
flaMenGo
20%
The Club’s financial management in the past five years has been
marked by balance, along with ample generation of revenues. This
more responsible attitude allowed a permanent investment in the
football department, without the irresponsibility seen in the past
or negative effects on the Club’s finances. An example of this is the
evolution of investment related to the total revenue generated. In 2007,
investments in the football department accounted for 85.1% of the
total revenues; this figure dropped to 67.1% in 2011.
The Club has been posting positive and increasing cash flow
generation. This indicator, usually used in the corporate sector, is
known as EBITDA, and refers to earnings before financial expenses,
taxes, depreciation and amortization. In 2010, Corinthians’s EBITDA
was R$ 41.1 million, reaching R$ 73.7 million in 2011, up 79%. When
compared to the total revenue produced, known as the EBITDA
margin, the indicator has shown positive results for four consecutive
years. In 2011 alone, it reached 25%.
econoMic
perforMance//
club management time to invest
300
250
200
150
100
50
-
85.1%
114.6
133.7
2007
81.2
69.1%
117.5
costs of the football department
73.8%
133.6
181.0
153.4
72.1%
212.6
2008 2009 2010 2011
cash flow generation
300,000
250,000
200,000
150,000
100,000
50,000
-
(50,000)
evolution of investMents in the football
departMent as a proportion of total revenue
(in Millions of brazilian reais, except line)
194.9
ebitda evolution x total revenue
(in Millions of brazilian reais, except line)
-5.1
134.3
-3.8%
ebitda
total revenue
ebitda margin
26.8
117.5
181.0
38.7 41.1
212.6
67.1%
290.5
290.5
22.8% 21.4% 73.6
19.3% 25.4%
2007 2008 2009 2010 2011
In 2007, the Club’s net debt was R$ 101.6 million, but there was a
low level of investment, both in players and in fixed assets. The
current administration reversed this situation, keeping the Club’s
indebtednesses at a balanced level and considerably increasing the
level of investment. Between 2007 and 2011, investments grew by
651%, while indebtedness increased by 76% in the same period.
Investments made in 2011 increased by 107% when compared
to 2010, while indebtedness increased by 47%, thus proving
that the current administration’s finances remain balanced. The
Club also presented a significant improvement in its fixed assets,
due to heavy investments in the Joaquim Grava Training Center,
in addition to investments in high-level players, wich will allow
Corinthians to form very competitive teams.
200
150
100
50
The investment plan was very positive for the Club.
Overall, in 2011, the Club’s indebtedness increased by
R$ 56.8 million, while the investment in fixed and intangible
assets grew by R$ 62.1 million.
Analyzing data from December 2007 to December 2011,
it can be seen that indebtedness increased by R$ 77.3 million,
while the increase in fixed/intangible assets was of R$ 103
million. Therefore, in this period, Corinthians’s assets grew
by a significant R$ 25.7 million.
evolution of indebtedness x investMents in fixed or
intanGible assets (in Millions of brazilian reais)
indebtedness
fixed/intangible
101.6
evolution of indebtedness x investMents Made
(in Millions of brazilian reais)
101.6
12.7
2007
143.2
indebtedness
investments made
97.2
25.1
97.2
149.7
99.8
99.8
158.1
122.1
184.1
178.9
2007 2008 2009 2010 2011
38.9
122.1
46.0
178.9
2008 2009 2010 2011
95.4
246.2
sustainability
report 2011 53