The investment fund was created by Tricolor to repay debts from 2025, but the ceiling has been breached in recent seasons
Last week Sao Paulo approved the FIDC (Credit Rights Investment Fund). The creation of the fund aims to raise R$240 million to resolve the club’s bank debt, which at the end of last year exceeded R$220 million. Tricolor will therefore have to follow a series of financial rules to achieve the goal. In the last three years, however, the limit, valid from next season, has been exceeded.
The rule is that Sao Paulo will have up to R$350 million or half of the previous year’s gross revenue to spend on salaries, hiring and other expenses. Therefore, the club will have to evolve its financial situation over the next four and a half years and regain a leading position on the national scene.
However, in recent years, Tricolor has not respected this rule. In 2021, the team spent R$369 million, more than the R$223 million that would constitute the cap. A year later, it invested R$356 million, exceeding the limit of R$291 million. Finally, in 2023, the club spent R$426 million, with a limit of R$350 million.
Initially, the fund will raise R$240 million to resolve larger debts with shorter terms. After that, the rest will be used to pay other payments. The goal is for Sao Paulo to have no outstanding debts in four years.
We therefore remain waiting to know how San Paolo will behave financially next season. Mainly in hiring. After all, the Tricolor aims to compete in the Libertadores again and wants to have a strong team to seek its fourth continental championship.
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Source: Terra
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