Edmundo Santos Silva left a terrible financial legacy

Former president of Flamengo stayed at Flamengo for three years

RODRIGO BENCHIMOL - LANCE

The reasons for Flamengo's financial chaos have been readily apparent over the years. Irresponsible or incompetent management has led the club to accumulate debt that reached R$233 million in 2006, a figure expected to rise in 2007.

LANCE! investigated the reasons for this and discovered the losses that Flamengo has suffered year after year, since 1994. From the presidential administration of Kléber Leite (95/98), through Edmundo Santos Silva (99/2002), Hélio Ferraz (2003) until Márcio Braga (who took over in 2004) there are R$ 215 million in debt.

The consequence of this is a barrage of absurd lawsuits that are damaging Flamengo's finances. As LANCE! reported in its edition last Wednesday, Flamengo spends R$1,9 million monthly on a payroll that only pays past debts. Of this amount, 70% (approximately R$1,5 million) is spent solely on former players and coaches. In addition, the club still has its regular payroll of approximately R$3,2 million, R$2,3 million of which goes to the football department.

Flamengo's most damaging period was under Edmundo Santos Silva. The current Board of Directors is opening a commission of inquiry to investigate irregularities during the four years of the only president to be impeached. According to calculations by the finance department, Flamengo's coffers suffered a total loss of R$211 million.

During these four years, Flamengo nominally collected R$370 million, but spent R$482. These R$112 million losses were adjusted by the IGPM index and the value became the R$211 million mentioned above.

– This administration has harmed Flamengo financially and morally – stated vice president of administration and finance José Carlos Dias.

One example of a case that complicates things for Flamengo is that of right-back Bruno. Signed in 2001, he never wore the Flamengo jersey, but won a R$5 million lawsuit due to his release clause.