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TV revenue boosts Brazilian teams


Brazil's economy may be experiencing sluggish growth, but the country's football clubs are experiencing boom conditions. It's largely due to a growth in television revenues according to a study by bank Ita├║ BBA.

The revenues of Brazil's top 24 teams grew an average 32 per cent in 2012 to reach a total of almost $1.4bn. Since 2010 club revenue has grown consistently, on average at about 29 per cent a year.

A decade of economic stability has seen a rise in the number of lower middle class citizens who have cash to spend on more than necessities. Companies are using television to target these new consumers and, in Brazil, football always draws a big audience.

TV revenues for the biggest clubs now account for nearly half of their total income. In comparison, Real Madrid gets 39 per cent of its income from television revenues and Manchester United 32 per cent.

Clubs' debts, however, are also rising at a rate of 22 per cent a year. Corinthians, Brazil's biggest club, will have a new stadium in the east of Sao Paulo for the World Cup, but it will be saddled with debt to the national development bank, BNDES.