Brazils professional teams are drowning in debt, hemorrhaging players and playing in near-empty stadiums. Eight of the top 12 clubs are behind on salaries; if they were businesses, nearly every team in the first division, Serie A, would be bankrupt.
Now, with Brazils economy in recession, and sponsors and fans cutting back on spending, the clubs finances are expected to get even worse. The clubs must publish their 2014 results by April 30, and only one Rio de Janeiros Flamengo will be able to announce that it has earned enough to service its debt and pay its taxes, according to estimations by Cesar Grafietti, a credit manager at the Brazilian investment bank Itaú BBA.
The consequences are increasingly visible on the field.
Brazils clubs make much of their money by selling their players almost none of whom are free agents to foreign clubs, but the export of Brazilian soccer talent is accelerating. And instead of sending stars like Neymar to top European clubs like Barcelona for tens of millions of dollars, Brazilian clubs are selling their best players to teams in countries out of the global soccer spotlight.
Cruzeiro, a club from Belo Horizonte that was the league champion in 2013 and 2014, this year sold two top young players, Éverton Ribeiro and Ricardo Goulart, to teams in the United Arab Emirates and China. Ribeiro and Goulart are considered to be strong candidates to play on Brazils national team in the 2018 World Cup, though playing in second-tier leagues may hurt their chances.
Teams desperate for cash are selling ever-younger players, even teenagers who have not yet established themselves and can command only modest transfer fees.
The clubs are selling their futures, said Amir Somoggi, a sports management consultant in São Paulo. Somoggi estimated that Brazilian clubs would sell more than 1,200 players to foreign teams this year.