Dear Member,

Our team is completing its first 20 days in office. These days have been filled with hard work, but also with great joy in seeing that together we can achieve many positive things for Flamengo.

Since the press has given a lot of attention to our Club's financial situation during this period, we felt it was important to share with you the information we have gathered so far and the steps we have taken.

Unfortunately, the published news accurately reflects the club's economic reality. There are indeed many unpaid debts to suppliers, banks, professionals, employees, and various levels of government. These debts have had their payments postponed, even after several negotiations that were subsequently not honored.

As a result, we now have the accumulation and increase of these amounts, as well as a series of seizures that greatly hinder Flamengo's already weakened cash flow and the receipt of new revenues that we have been negotiating.

One of the most emblematic cases, in our view, was the failure to remit to the tax authorities, in recent years, the income tax withheld from our employees.

To better understand the financial situation and allow us to act more assertively and transparently, we have hired the auditing services of Ernest & Young, which will finalize its report in 90 days and will present it clearly and didactically to the Flamengo fans.

Despite this problematic situation, we are aware of our Club's enormous potential to reverse it. To this end, we are working hard on renegotiating debts and increasing revenue.

In these past 20 days, we have already had several meetings with the National Treasury, government agencies, and suppliers, among others. In addition, we are restructuring the entire operational framework of our Club to achieve greater efficiency and quality in the work we do internally.

Regarding revenue generation, we are working both to close major commercial and sponsorship deals (such as those with Adidas and Peugeot) and to develop a strong fan membership program, as well as to obtain a sum of smaller revenues that were rightfully the Club's but were not being collected or were poorly managed (such as licensing and space rental contracts). It is worth noting that, at this moment, all incoming revenue – from the largest contract to a simple monthly fee – is extremely important.

Within this concept, we ask you, who have always been with Flamengo: continue your support by paying your membership fees on time, buying our official products, and participating in the social life and preservation of the Club. Only with your participation will we be able to make the necessary investments to improve our social headquarters, strengthen our football program, and support all Olympic sports.

The Flamengo family deserves a strong and respected Flamengo. Let's row together in the same direction.

Big hug and may 2013 be a great year for all of us.

Eduardo Bandeira de Mello

PRESIDENT