Dear member,
We are completing 200 days of administration of Clube de Regatas do Flamengo.
During this period, we worked extensively to determine Flamengo's true financial situation, as our club needed greater transparency and control over important day-to-day financial information.
Fortunately, today we can say that, despite Flamengo's dire financial situation, we have at least gained a clearer understanding of the club's financial situation. Only then have we been able (and will continue to be able) to carry out the work to address the significant deficit.
As we are committed to being completely transparent in our actions, we feel it is important to share with you, our partner, the current financial position of our headquarters and the measures we are taking to address this serious issue.
When we began our term, on January 2nd, we raised the cost/revenue forecast for Fla Gávea for the year 2013. The numbers proved to be very worrying.
The maintenance of our headquarters alone was estimated to cost R$16.000.000,00. This amount would cover employee payments, electricity, water, basic maintenance, etc. It's worth noting that these costs did not include the much-needed renovations needed to improve the club.
In contrast, the expected revenue from monthly payments, sales of titles and schools totaled just over R$10.000.000,00.
In other words, our Fla Gávea had a projected deficit, for 2013 alone, of R$6.000.000,00.
We therefore had an unacceptable deficit and a service provision to members that left much to be desired.
To address the financial problem, we began our work seeking cost reduction. To this end, we conducted a comprehensive review of service provider contracts. We're reallocating staff and seeking to cut waste (water and telephone bills have seen a significant reduction).
Unfortunately, these measures won't be enough to close Fla Gávea's deficit. From the R$6.000.000,00 budgeted at the beginning of the year, we now have a deficit of R$4.800.000,00.
The main focus now will be on increasing revenue for the headquarters.
Outsourcing parking was one of the initiatives to combat this problem. This not only enhances the club's assets and offers significantly improved services to our members, but also reduces personnel costs and, most importantly, raises funds to help address the deficit.
The next and most important measure to be taken, now on September 25st, will be to adjust the club's monthly dues. Currently, of the more than 7.000 members and dependents registered with Flamengo, fewer than XNUMX contribute monthly to the club. In the latest list presented by the secretariat, we found the following numbers of members who, due to statutory rights, do not contribute monthly to Flamengo:
- 609 - Great benefactors, benefactors, emeritus and laureates
- 385 - Redeemed
- 114 - Champions and honors
- 16.034 - Dependents
- 2.840 - Owner partners with titles purchased before 1992
- 937 - Owner partners still in the 5-year grace period
These figures show that Clube de Regatas do Flamengo has, as permitted by its statute, approximately 65% of its members and dependents exempt from paying regular monthly fees.
In addition to this large percentage of non-payers, we also have the fact that the current monthly fees have remained unchanged since February 12, 02. In other words, Fla Gávea has not adjusted its main source of income for over four years, even with inflation (IPCA) of 2009% during the period.
Therefore, after a comprehensive survey of the monthly fees of various clubs around us and in Rio's South Zone, such as Monte Líbano, AABB, Piraquê, among others, and analyzing Flamengo's entire collection history, we arrived at figures that, while not yet covering the entire financial hole of our headquarters, will help alleviate some of the problems we face. They are:
Owner Partner: R$ 100,00
Equity Partner: R$ 200,00
Individual Contributing Member: R$ 140,00
Individual Contributing Member (practitioner of classes at the schools): R$ 110,00
Family Contributing Member: R$ 190,00
Off-Rio Member: R$40,00
Dependent: R$ 10,00
As you can see, this average 33% increase in dues is slightly higher than the inflation rate for the period and keeps our club among the lowest in our area (as an example, AABB's current dues are R$230,00). Furthermore, implementing a payment of only R$10,00 per dependent will make our community more equitable in contributing to the club's upkeep, as we will now charge more to those who use our space the most.
Dear member, rest assured that this adjustment was the smallest we could implement. Addressing the financial deficit is a fundamental step for Flamengo to continue being the great club it is. To this end, we reaffirm our board's tireless efforts to improve the club's operations, securing the much-needed resources for the physical improvements to our facilities.
Making Fla Gávea an even better place to spend time with our families is one of the main goals of our administration.
Receive our warm regards.
BOARD OF DIRECTORS OF THE FLAMENGO REGATAS CLUB