Grêmio dribbles COVID-19 and closes 2020 with net profits of US$ 7 million

Grêmio, a football club from Porto Alegre in Brazil,  presented the 2020 balance sheet with positive financial figures, even with the huge negative economic impact of the pandemic.

Club is certainly among a great example of financial control amid the impacts of COVID-19.

Brazillian teams financial numbers have impacted by the currency. 1 US$ represented R$ 5,19 in 2020, against R$ 4,02 in 2019, R$ 3,88 in 2018 and R$ 3,19 in 2017.

Clubs around the world have closed 2020 with heavy losses, such as Barcelona with €97 million of net losses, Everton €158 million or Roma €204 million. The situation is very serious.

Grêmio suffered from the reduction in revenues, and even so ended the year with a net profits of US$ 7 million, the fifth positive result, which is already US$ 40 million accumulated in 5 years.

Net profits- Grêmio – US$ million

Revenues rose from US$ 82 million in 2019 to US$ 59 million in 2020, a 3.6% drop in R$, but 28% en US$ terms.

Grêmio Revenues – US$ million

The biggest cuts were with TV, a fall of 11%, that will be received in 2021. The club posted a 15%  cut in revenues with members and 12% from sponsorships. Royalty revenues grew by 12%.

The foootball costs department consumed US$ 60 million and represented 73% of the resources currently generated.

Administrative expenses fell sharply by 25%  and was predominant for last year’s profits.