MANAGEMENT REPORT

PRESENTATION aforementioned term. and projects undertaken duringthe stakeholders concerning enterprises towards itstarget audience andother report isproof ofthiscommitment transparency initsactivities.This regards to enforcing efficiency and under itscurrent managementin enhancing thekey principles setforth been carrying outefforts aimedat the country, theorganization has to supportandorganize football in duties andattributionsinhelping In additionto fulfillingitsstatutory December 2017. term spanningbetween 1Januaryand31 describes itsmainachievements inthe Annual ManagementReport,whereby it Confederation (CBF)hereby presents this National Teams, theBrazilian Football achievements madebytheBrazilian our tournaments andimportant filled withthrillingmatches in After abusyandenergetic season passion bothin Brazil andabroad. this amazingsportthatstirs somuch and interest ofspectators andfans of undoubtedly inspired bytheenthusiasm all, saidachievements are driven and departments. Nevertheless, and above staff aswell as bytheheadsof the organization’s entire collaborating hard andcontinuous work carried outby mentioned herein are aresult ofthe It isworth notingthattheresults other amateur football organizations. professional teams andthousandsof 27 state federations, inadditionto 720 proportions, in whichitspearheads in acountry withcontinental fostering andcoordinating football confederation thatisincharge of complexity ofoperations withina publication isalsoto introduce the its key activities,thepurposeofthis supporting, strategic and,particularly, activities, inadditionto describing Encompassing CBF’s widerange of GOVERNANCE ANDCOMPLIANCE DEPARTMENT André dosSantos Megale FINANCIAL DEPARTMENT Gilnei Botrel INFORMATION TECHNOLOGY DEPARTMENT Fernando França LEGISLATIVE CONSULTANCY DEPARTMENT Vandenbergue dosSantos Sobreira Machado HERITAGE DEPARTMENT Oswaldo Antonio EliasGentille INSTITUTIONAL RELATIONS DEPARTMENT Marcelo GuilhermedeAro Ferreira DEVELOPMENT ANDPROJECTS DEPARTMENT Gustavo HenriquePerrella Amaral Costa COORDINATIONS DEPARTMENT -SÉRIED(FOURTH DIVISION) André LuizPitta Pires COMMUNICATIONS DEPARTMENT Douglas Lunardi MARKETING DEPARTMENT Gilberto Ratto Ferreira Leite REGISTRATION, TRANSFERANDLICENSINGDEPARTMENT Reynaldo Buzzoni deOliveira Neto COMPETITIONS DEPARTMENT Manoel Medeiros Flores Júnior HEADS OFDEPARTMENTS LEGAL DIRECTOR Carlos EugenioLopes EXECUTIVE DIRECTOR Rogério Caboclo SECRETARY GENERAL Walter Feldman VICE PRESIDENTS Marcus Antônio Vicente Gustavo Dantas Feijó Fernando JoséMacieira Sarney PRESIDENT Antônio Carlos NunesdeLima

Products Licensing Program 7.3.3 NationalTeam Official 7.3.2 Canarinho(Brazilian Team) Mascot 7.3.1 “GiantsbyNature” Program 7.3 Projects 7.2.4 Current Framework 7.2.3 Partnership Development (statistics) 7.2.2 SponsorMatch 7.2.1 SponsorReunion 7.2 360ºCBFSponsorProgram 7.1 Marketing 7. 6.1 Projects 6. REFEREEING 5.1 Projects 5. COMPETITIONS 4.8 Retirement Certificate 4.7 ClubLicensing 4.6 Intermediaries 4.5 Transfers 4.4 CoachAgreements 4.3 Agreements perGender 4.2 Agreements perAgeGroup 4.1 Player Agreements ANDLICENSING 4. REGISTRATION, TRANSFER 3.4 Youth Ranks 3.3 MainWomen’s NationalTeam 3.2 MainMen’s NationalTeam 3.1 NationalTeam MainStatistics 3. NATIONAL TEAMS 2.4 Musemofthe“Brazilian NationalTeam” 2.3 Granja Comary 2.2 CBFAcademy 2.1 Administrative Headquarters andEvents 2. INSTITUTIONAL 1.3 Executive Director 1.2 Secretary General 1.1 President 1. MESSAGES BY CBF MARKETING ANDCOMMUNICATIONS SUMMARY

38 10 06 54 110 90 70 11.10 Organization LiquidityandDebt 11.9 Operating Income andNetSurplus 11.8 Cost andExpenseForecast 11.7 Taxes 11.6 Operating Expenditures 11.5.3 Football Development Costs 11.5.2 Competition-related Costs 11.5.1 Brazil NationalTeam-related Costs 11.5 Direct Football-related Costs 11.4 Total Expenditure 11.3 Revenue Forecast 11.2.2 FinancialRevenues 11.2.1 Operating Revenue 11.2 Revenues 11.1 Assets 11. FINANCIAL 10.3 Conclusion 10.2 Compliance 10.1 Governance ANDCOMPLIANCE10. GOVERNANCE 9.5 Events 9.4 CBFSocialatthe‘Green Cup’(‘CopaVerde’) 9.3 NationalTeam inMyCity 9.2 Future NationalTeams Program 9.1 Brazil GoalProgram 9. SOCIALANDENVIRONMENTAL 140 8.4 Refereeing Evaluation 8.4 Referee News Website 8.3 Referee Portal 8.2 CBFAcademy 8.1 Intranet 8. INNOVATIONS ANDTECHNOLOGY 132 7.4.5 Press Office 7.4.4 Radio 7.4.3 Live Broadcasts 7.4.2 SocialMedia 7.4.1 NationalTeam Statistics 7.4 Communications 7.3.5 2017e-Brasileirão Marketing Evolution Week 7.3.4 We are Football –Brazilian Football 158 174 1

The Brazilian Football Confederation played. We arrived at the World Cup in has a great deal to show for in regards Russia fully prepared and commanding to management enhancement, our opponents’ deepest respect. I am financial performance, operational confident when I say that Brazilian expansion, increased prize money football is one of the most competitive offered in competitions and significant in the planet. MESSAGES BY CBF BY MESSAGES results achieved on the pitch. These accomplishments enable the Board of We are fully aware that we have made Directors, which I have the honor of a lot of progress. Choosing Tite and presiding, the satisfaction of feeling Edu Gaspar to lead our National that its mission has been accomplished. Team proved to be a sound decision. The Coaching Staff’s high level of In regards to management, the commitment, skill and dedication met organization has carried out noticeable all expectations and is a part of CBF’s improvements. We have reached the long-term plans. peak of our financial and administrative success. In a challenging economic Nonetheless, CBF will keep its efforts scenario, we managed to achieve a ongoing. We need to carry on in our significant surplus in the 2017 balance efforts to constantly and relentlessly sheet. And we achieved this through improve. To strive for a transparent, direct investments made in football, efficient and results-oriented amounting to R$ 400 million. The Brazil management enables, in the end, the Cup will feature a record prize money of possibility to increasingly invest in R$ 67.3 million offered to the winning Brazilian football, thereby enabling side. This comes down to CBF focusing clubs to hire and retain the best players. its efforts towards its key activities. That is our challenge. Let’s get to work!

The Brazil National Team finished the World Cup Qualifiers in first place, in addition to displaying exceptional ANTÔNIO CARLOS NUNES DE LIMA performances in friendly matches it President

06 2017 MANAGEMENT REPORT 1. MESSAGES BY CBF 07 Brazil isn’t so much a poor, but rather practice of football. Football is also proven Leadership, strategic targetting, Prize money offered to clubs reaching a very unequal country. The CBF Social to be a key path in improving quality of implementation planning, corporate the finals jumped from R$ 8.8 million Program showcases the organization’s life, increasing self-esteem, bettering compliance, effective performance, to R$ 67.3 million, almost eightfold. commitment towards the society that social interactions, fostering respect perseverance and a relentless search We also managed to set a new national surrounds it. Football is a key part in for rules, promoting social integration for results. Moreover, and of extreme record for Brazil National Team box Brazilians’ lives and should, as a result of and improving health. As a result of an significance, a team commitment. This office revenues, attaining a record the dreams it creates and paths it opens, enhanced interaction with international is the “secret” of CBF’s performances, revenue of R$ 15.1 million in a single become an important tool for social organizations, we also secured in 2017 the both inside as well as out of the pitch, match. In 2017, women’s football inclusion concerning underpriviledged release of FIFA and CONMEBOL funds, which we are pleased to disclose herein. funding increased 55% in comparison members of its population. such as the legacy fund of the 2014 FIFA to the previous year and the ‘Green World Cup, the FIFA Forward Program It is definitely no overstatement to Cup’ (‘Copa Verde’), one of our regional One example of said possibility is the social and the ‘Evolution Program’ (‘Programa say that in these years of a profound tournaments, saw its earnings increase and educational program entitled Brazil Evolución’) (CONMEBOL). The World Cup economic crisis, we have walked by 65%. Goal (‘Programa Socioeducacional Gol legacy, for example, foresees investments our path confidently in spite of do Brasil’), which aims to improve living aimed at developing youth ranks and challenges posed by the global Nevertheless, we want more. In 2018, conditions of children and teenagers. The women’s football, in addition to building economy. Within a context of economic we expect the organization’s total end purpose is precisely this, though the training centers in the 15 Brazilian states downturn, CBF achieved its goals, revenues to increase due to the fact means by which it is achieved is through that did not host 2014 World Cup matches. increasingly investing in national that we created new revenue streams. football. We have secured partnerships teams, competitions and supporting We will also be granted FIFA and with public officials who are highly sensitive Still within the scope of the Secretary Federations. The organization’s CONMEBOL financial contributions for to our cause. Though we need goals and General’s Department, we sought in 2017 surplus reached R$ 50 million, a 16% projects which aim to foster football methods, we also need to bring together to further improve relationships with increase in 2017 when compared to in the entire Brazilian territory, our feelings of excitement and spirit into players, former players, referees, Clubs 2016, a substantial result. Our financial biggest commitment. this great chain in order to lure a target and Federations. They are, after all, the situation is sounder than before and audience so dire in need of opportunities. reason why our organization exists. We we are investing even more in football, Thus, results were extremely favorable represent and serve them. Today, there while cutting back on expenses and in 2017 and the outlook for 2018 is very Another endeavor carried out by CBF is clearly a feeling of unity surrounding upgrading our management. promising. We will work together to has the aim of supporting the “Future Brazilian football and harmony in the achieve, at the management scope, National Teams Project” (‘Projeto search for the best possible solutions, Some figures deserve to be mentioned. a level of excellence that everyone Seleções do Futuro’) that is spearheaded which further increases the belief that Sums remitted to clubs playing in the acknowledges in Brazilian football by the Ministry of Sports. The purpose is we are on the right track. ‘Brazil Cup’ (‘Copa do Brasil’) grew an every time it enters the pitch. the same: to bring together young people astounding 148% and, moreover, the aged between 7 and 17 years to develop WALTER FELDMAN total investment in the competition ROGÉRIO CABOCLO their physical and motor skills through the Secretary General comes close to nearly R$ 300 million. Executive Diretor

08 2017 MANAGEMENT REPORT 1. MESSAGES BY CBF 09 2 INSTITUTIONAL 2.1 ADMINISTRATIVE HEADQUARTERS AND EVENTS

INSTITUTIONAL It entails the place where the entire The headquarters consists of a proper 2 management and administrative and exclusive building designed to meet structure of the Confederation is held, the needs of the country’s biggest sports its Board of Directors and employees, confederation. It brings together important as well as third party individuals whose customizations and state-of-the-art efforts ensure the organization is up sustainability requirements: a rainfall and running and capable of carrying on collection and water reuse system generated The Brazilian Football Confederation participating clubs and, consequently, with is operations. by air conditioners; in addition, a solar (CBF) is extremely pleased to submit in guarantee the unpredictability of panel system conceived to reduce energy this chapter the main accomplishments results and the principle of continuity of With renovated premises in Rio de consumption from conventional sources. and corresponding figures that competitions. Janeiro since June 2014, one of the impacted the organization positively and cities waiting to host the FIFA World Moreover, the headquarters comprises significantly throughout 2017 in regards Therefore, this part of the report Cup that year, the headquarters was the Museum of the Brazilian National to its operating structure, premises stresses the core of resources and conceived, planned and built with the Team and a state-of-the-art auditorium and events. They are important issues structures that support and provide the purpose of providing the best possible that hosts a wide number of events, guiding its operations in supporting organization’s operations: working conditions for CBF. such as Brazil National Team call-ups. the fostering of football as its role as the largest football developing entity in 1. Administrative Headquarters the country. They address issues that and Events; distinguish it as an organization and 2. CBF Academy; bolstered it in its continuous growth. 3. Granja Comary; 4. Museum of the “Brazilian In addition to the ones described here, National Team” the achievements specified throughout this report are themselves responsible Thus, in a brief and objective way, for highlighting and verifying how CBF this chapter addresses issues has been increasingly taking the reigns, encompassing a wide range of the in an evergrowing decisive manner, in its organization’s scopes of interest: the institutional role, so aptly described in working structure for administrative its mission, which is comprised of: professionals and for supporting the Brazil National Team in its 1) Fostering football full-time, from its various ranks, the new framework key core in its distinct ranks, promoting in disclosing awareness on football and organizing competitions and and, furthermore, appreciation of the providing the best possible preparatory history and triumphs of the “Canarinho infrastructure for the national teams. National Team”.

2) Championing fairness in competitions We will now specify features of the through the enforcement of transparent administrative headquarters and of some criteria that ensure equality among major events that were carried out.

12 2017 MANAGEMENT REPORT Events

The administrative headquarters hosted a wide number of Brazilian football-related events throughout 2017. Among several events it receives, the spot welcomes Brazil National Team call-ups, courses, training programs, draws for CBF- organized competitions, besides other events, such as press conferences, particularly after call-ups, in addition to important inside events: the organization’s Board and assembly meetings. Some of these events during the 2017 season included:

•1st National Meeting of Football Zico, Parreira, Luxemburgo, Oswaldo • 3rd Continuing Education Approximately 30 experts gave lectures Coaches – Held in the headquarters’ de Oliveira and Tite assembled with the Symposium of the National Football on the following subjects, among auditorium and organized by the CBF President and Board of Directors Physicians’ Commission (CNMF) - others: upper body, torso and pelvis National Federation of Football Coaches to discuss matters related to football The then President of the Brazilian injuries; football player concussions; (FBTF). The event brought together 73 coaching duties. Football Confederation opened licensing consequences for the Medical football coaches, including those in the event, whose aim is to share Department; and, moreover, muscle charge of the Brazil National Teams. knowledge in this field of developing injuries and stress fractures (foot, After debating important issues, such sports medicine, and united 60 ankle and knee). The event emphasized as coaches’ registration, licenses, The event brought together physicians from Séries A, B and C the organization’s concern on improving exchanges and other matters, a clubs, in addition to 50 other invited the medical side of football. commission comprised of the FBTF 73 football coaches, professionals. President Zé Mario, Secretary General including those in charge of Alfredo Sampaio, Vice Presidents Falcão and Wagner Mancini, coaches the Brazil National Teams.

14 2017 MANAGEMENT REPORT 02. INSTITUTIONAL 15 • Debate on Stadium Safety – The focused on fighting violence both Brazilian Football Confederation’s inside and outside of Brazilian Heads of Departments and of Security stadiums. Management, members of the Superior Court of Sports Justice, prosecutors The meeting discussed issues such as and public safety organization sale of alcoholic beverages in stadiums representatives met to discuss safety and use of biometric technology to of fans and to propose partnerships identify fans.

PRO License class at the Granja Comary (December 2017).

2.2 CBF ACADEMY

We can confidently say that 2017 The meeting also debated equipment technical reports definitely strengthened and measures aimed at fighting and new protocols and action consolidated CBF Academy as a center of excellence in educating and violence among organized fan plans in football matches teaching, with the purpose of fostering clubs, new ideas for sports taking place within Brazil. football in Brazil.

16 2017 MANAGEMENT REPORT 02. INSTITUTIONAL 17 2016 2017

While always keeping in mind the principle of teaching and educating 1,400 1,288 1,210 professionals working in sports, the 1,200 department increased its team by 1,000 hiring qualified staff and enhanced its 800 efforts related to managing technical 576 licenses and specific programs 600 in a wide host of fields: football 400 343 management, sports law, physical 200 training and goalkeeper training, 0 football intermediation and technical coordination, among others. NUMBER NUMBER OF STUDENTS OF CERTIFICATES Compared to the previous year, Source: CBF Academy CBF Academy increased its number of programs offered from 12 to 14: Results achieved restate CBF Academy’s the Technical Coordination for commitment towards its key goals, Youth Ranks and Intermediation those being: Workshop. Furthermore, the number of classes was also significantly 1) To make official CBF Licenses and increased and, additionally, featured certificates that constitute the Brazilian courses with specific content per football professionals program both at geographic area, including the national and international levels; Northeast (2), South (2) and Southeast Methodology regions of Brazil. 2) To develop a program aimed at training football professionals that is based on scientific knowledge and has Efforts carried out mirrored the Structuring of courses, including the entire educational unit, standards for the number a practical enforceability in the working increased number of students: from of hours/class, teaching method and other traits, were planned after evaluating teaching routine of said professionals, based 576 in 2016 to 1,288 in 2017, signaling models for coaches used in several renowned places around the globe, research and on- upon ethical and teaching grounds; a near 123% raise. In regards to the site visits, interviews and instructor teaching seminars. number of certificates issued, whereas 3) To foster a standard method for 2016 had 343, in 2017 1,210 certificates spreading theoretical and practical Furthermore, coaches and experts hailing from several sports-related fields were were issued, a 252% increase, as can knowledge of Brazilian football through consulted in order to pinpoint necessary skills and capabilities for developing qualified be seen in the graph. publications and records. professionals to perform in football-related areas. Additionally, with the intent of concluding and consolidating the methodology, CBF Academy’s managers, alongside a commission of experts, came together to discuss and validate a framework that, although related to international models, also was aligned and in tune with Brazilian culture and its specific traits. In a plain and summarized way, the main “goal” is to boost beneficial relationships among football professionals, with the end purpose of enhancing the value chain in football, thereby becoming an important tool for the continuous development of the sport.

18 2017 MANAGEMENT REPORT 02. INSTITUTIONAL 19 All subjects and their course content were widely discussed and planned so as to add Programs value to football professionals. Some, in particular, are especially worth mentioning, such as the ones below.

As previously described, the department offered 24 classes in 2017, amounting to 1,352 enrolled students. Due to the football fostering mindset it possesses, after the initial application stage, CBF Academy’s recruitment staff evaluates, particularly from candidate resumés, whether there are, among the enrolled, members of clubs or institutions that effectively play a relevant role in Brazilian football. The goal is to enable learning PRO License (Professional) A License opportunities to people who truly intend to apply the theoretical knowledge gained in favor of sports in Brazil. for Coaches for Coaches

This program features an intense set of This program has a similar content subjects focused on football coaching to the previous one. It requires Thus, CBF Academy offered the following programs during the season: duties. The A License is an important completion of the B License and has prerequisite for acceptance, taking a course load of 270 hours, with 190 into account the fact that students hours of specific content theoretical are coaches who intend to perform as and practical subjects, 50 hours of coaches in top-level professional teams. supervision and observation of training PROGRAMS Number of classes in 2017 The course load is 370 hours, of which sessions, and 30 hours of special PRO LICENSE 1 260 hours relate to specific content studies and mentoring. A LICENSE 2 theoretical and practical subjects, B LICENSE 4 50 hours are of special studies with Currently, this program is the tutoring, and 60 hours of supervision main license for coaches in Brazil, C LICENSE 5 and observation of training sessions. since, upon its conclusion, said PERFORMANCE EVALUATION (YOUTH RANKS) 3 professionals are ready to lead PERFORMANCE EVALUATION (PROFESSIONAL) 1 The 2017 program featured coach Fábio Brazilian Championship Série A-level GOALKEEPER TRAINING (YOUTH RANKS) 1 Carille, who was the Série A Brazilian teams. STRENGTH, POWER AND SPEED 1 Champion with Corinthians, and Vadão, PHYSICAL TRAINING (PRO) 1 coach of the Brazil Women’s National TECHNICAL COORDINATION (YOUTH RANKS) 1 Team. Some of the instructors included Carlos Alberto Pareira and René Simões. FOOTBALL MANAGEMENT PROGRAM 1 INTERMEDIATION WORKSHOP 2 LAW AND FOOTBALL WORKSHOP 1 TOTAL 24

Source: CBF Academy

20 2017 MANAGEMENT REPORT 02. INSTITUTIONAL 21 Law and Football Workshop Football Management Program 2.3 GRANJA COMARY Aimed at law professionals who work in This is one of the main programs football. Features 20 hours/class and offered and is aimed at educating some of its main lecturers included sports managers who perform in the Marcos Motta, lawyer specialized in football industry in several fields, such The Brazil National Team Training Center (“Granja Comary”) is deemed the home of Sports Law, and Felipe Bevilacqua, an as planning, marketing, personnel all national teams, in other words, it is the place where the national team, in any of its STJD prosecutor. management and sports law, for several ranks, finds peace, shelter and the necessary infrastructure for its ongoing example. It is focused on enhancing preparation for the several competitions and tournaments it plays. It is important to professionals who work as managers note that this was yet another innovation made by CBF’s current management, since, in in clubs. Intermediation Workshop the past, the center was home only to the main Brazil National Team and failed to host other squads, such as youth rank national teams, for instance. Program conceived to train intermediaries The year of 2017 saw its third edition registered at CBF in regards to rules take place with the same level of guiding this activity, as well as football success as that of its previous editions, managers and sports attorneys. It has a showing for an attendance of 104 course load of 20 hours/class and featured students. lectures by instructors Marcelo Jucá (President of the TJD-RJ) and Marcelo Moura, a TRT judge, among other teachers.

Honorary License

The Honorary License is granted to Brazilian football coaches who completed 60 years as of 31 December 2017 and accounted for at least 50 points, in accordance with criteria set forth during the 2016 CONMEBOL Convention. This is an acknowledgement to years of service rendered to Brazilian football, commitment and dedication to the career of football coach. Some of the coaches honored were Mário Jorge Lobo Zagallo, Evaristo de Macedo, Carlos Alberto Parreira and Abel Braga.

22 2017 MANAGEMENT REPORT 02. INSTITUTIONAL 23 Located in the city of Teresópolis, Furthermore, it offers lodging, This training grounds offer the following: in the mountains of the State of meals and technical and medical Rio de Janeiro, Granja Comary is evaluation facilities that meet the a truly specialized sports center needs of a wide host of groups. which enables state-of-the-art technology in equipment and 1 fitness center premises aimed at training and with state-of-the developing high-level teams. art equipment 1 indoor 5 football pitches swimming pool with official for regenerative dimensions training GRANJA sessions 1 restaurant COMARY with a professional kitchen

36 guest 1 medical center rooms Physiology and Physiotherapy

The center has a total area of approximately 145,000 square meters, inside which the main building is located, featuring lodging facilities, restaurant and most of the aforementioned items. It also boasts game and entertainment rooms for recreational and leisure activities after completion of daily activities.

24 2017 MANAGEMENT REPORT 02. INSTITUTIONAL 25 In addition to the aforementioned occupancy rates, the center hosted important events Occupancy Rate which did not require use of the complex hotel infrastructure (no lodging), but instead use of other resources:

Following the approval granted for all Brazil National Team ranks to use Granja Comary, NATIONAL TEAMS/TEAMS – Use per day (no lodging) 2016 2017 in addition to enabling more teams to technically enhance themselves, a natural result MAIN (M) - - was a steep increase in its occupancy rate. This number increased significantly in 2016, MAIN (F) - 11 reaching 95%, whereas in 2017 it’s rate amounted to 67%. In spite of the slight shrinkage, U-20 (M) 7 1 these figures verify a trend of high occupation for the center, thereby benefitting a greater number of athletes each year. U-20 (F) - 26 U-17 (M) 28 - CBF’s Heritage Department, which is directly responsible for running the center, keeps U-17 (F) - 38 thorough and detailed records not only with regard to the occupancy rate of the premises, U-15 (M) 8 8 but also concerning the total number of training sessions led by coaches, as well as OLYMPIC TEAM - - physical, physiological and follow-up evaluations carried out by coaching staffs. SPONSOR EVENTS 7 - PROGRAMS 53 68 Below, you will find figures breaking down the aforementioned information. OTHER TEAMS - - 2016 U-15 (DMK) NIKE CUP – 2017 Youth Rank Tournament 7 6 TOTAL 110 158

NATIONAL TEAMS/TEAMS (days) 2015 2016 2017 Source: CBF/Heritage Department MAIN (Men’s) 6 6 6 MAIN (Women’s) 34 80 10 U-20 (Men’s) 12 60 20 U-20 (Women’s) 0 31 60 Granja Comary’s management is also in charge of and keeps detailed records of U-17 (Men’s) 13 25 54 training sessions carried out in the five available pitches, as well as the fitness center, as seen below: U-17 (Women’s) 0 13 21 U-15 (Men’s) 19 5 46 OLYMPIC TEAM (M) 7 14 - PREMISES X NUMBER OF TRAINING SESSIONS 2016 2017 SPONSORS - 13 8 FITNESS CENTER 163 186 TOTAL 91 247 225 PITCH 1 81 68 PITCH 2 153 124 Source: CBF/Heritage Department PITCH 3 157 116 PITCH 4 105 88 PITCH 5 13 19 TRAINING MATCH 19 20 TOTAL 672 581

Source: CBF/Heritage Department

26 2017 MANAGEMENT REPORT 02. INSTITUTIONAL 27 The Brazil U-17 squad during a practice match at Granja Comary in Teresópolis. Investments and Upgrades

The Heritage Department carries Comary. The goal is to have a new The new premises are being built in a gym with a 650 square meter area. Some of its out regular assessments on needs indoor training center that would lead features will include the following: pertaining not only to the teams, to an increased and enhanced overall but also those of CBF as a whole. capacity, which today is better suited Thus, Granja Comary has received to outdoor activities. The idea is to yearly advances for its upkeeping and improve and tailor the physical and • State-of-the-art gym equipment; improvement so that it can increasingly technological structure for high-level meet training requirements of the training sessions, and it is seen as a • Synthetic turf for exercising and evaluations; national teams. key requirement for providing even • Facilities for physiological and laboratory evaluations; better conditions for high-performance • Two classrooms (with a 60-student capacity, each); Effective September 2017, its Board athletes. The premises are expected • Storage room. kicked off a project aimed at building to be completed in the first term a center of excellence inside Granja of 2018.

28 2017 MANAGEMENT REPORT 02. INSTITUTIONAL 29 According to management’s expectations, the new center of excellence will render It is also worth mentioning the amount of residue coming from the center’s operations that possible the following: was destined for recycling: approximately 3 tons, including cardboard, iron and aluminum, among other items.

Another point that further increases the challenges of the training center’s management • Enhanced use of the existing gym; operations are transportation requirements as well as fuel for operating the machinery. Below, you will find figures that size up transportation requests made by teams: • Increase in sports-applied physical and technological infrastructure; • Improved follow-up on professional players’ progress, as well as that of promising youth rank stars; • Player rehabilitation; • Specific training sessions; NATIONAL TEAM – TRANSPORTATION REQUESTS 2016 2017 MAIN WOMEN’S NATIONAL TEAM 45 27 • Research aimed at developing Brazilian football. WOMEN’S U-17 TEAM 25 15 WOMEN’S U-20 TEAM 40 21 MAIN MEN’S NATIONAL TEAM 22 28 MEN’S U-15 TEAM 26 25 MEN’S U-17 TEAM 46 25 MEN’S U-20 TEAM 41 16 Services Provided by the Training Center TOTAL 245 157

Source: CBF/Heritage Department

One of the reasons why we can perceive is reused, which generates a significant the center as a major sports complex volume both to meet the needs of is the wide host of services it offers, laundry services as well as to address which, in addition to lodging and environmental goals of reducing water training facilities, also include the consumption. In 2017, nearly 20,000 liters everthing needed to fuel following: laundry, meals, recycling facilities and comprehensive transport/ In regards to meal facilities, the center of fuel were consumed vehicles (buses, vans and vehicle and machinery management is equipped with a restaurant for up by machinery used to trucks) used by the wide supporting the premises operations. to 120 people that was conceived to efficiently meet the needs of the maintain pitches and other host of delegations that Thus, the complex laundry services national teams. During the 2017 equipment, including used the premises. washed around 30 tons of clothing season, it prepared and served over in 2017, from training equipment to 43,000 meals, between breakfast, guest room utilities, such as towels lunch, dinner and snack breaks, and bed sheets, for instance. Moreover, amounting to approximately 24 tons of it is important to point out that the food, and delivering about 100 meals entire water consumption used for per day throughout a full year. irrigation and washing of the premises

30 2017 MANAGEMENT REPORT 02. INSTITUTIONAL 31 2.4 MUSEUM OF THE “BRAZILIAN NATIONAL TEAM”

that are enhanced by high-tech equipment that seeks to reproduce timeless plays that have been eternalized in radio transmissions and black-and-white footage long before, Thus, while always aimed at its continuous operations and constant updating, the staff of as well as current TV broadcasts. At the “Museum of the Brazilian National Team” planned and carried out several activities, several times, visitors can experience including the following: what it feels like to enter a packed stadium, its sounds and the roar of fans through equipment devices • Conception of a specific space • Updating of the collection content, that feign players’ perceptions in a dedicated to tell the story of the thereby featuring up-to-date facts related Effective its transfer to its new 360-degree view. unprecedented gold medal conquered to the National Team that took place headquarters in 2014, CBF conceived during the 2016 Rio de Janeiro Olympic between August 2014 and June 2017; and built the premises of the “Musem Historical records rescue the Games; of the Brazilian National Team”, which beginnings of the yellow-green jersey • Renegotiations with the company operates on the ground floor of the national team before these uniform • Opening of a new store designed to in charge of operating the museum’s same building as its administrative colors were well known, when its market licensed products, which is high-tech equipment, which led to office in Rio de Janeiro. uniform was still predominantly white, located adjacent to the museum; an approximate 33% decrease in its depicting its first squads, players, agreement costs. The main purpose, when conceiving wins, heroes and titles. Visitors can the museum, was to keep alive the experience this in premises of nearly memory of the most successful ever 1,000 square meters and capacity for national football team for present 500 people. The premises are open to sports We must also note that, in the last and future generations, and all its lovers daily from 10 a.m. to 6 p.m., two years (2016/2017), the museum unforgettable matches, trophies lifted Under the management of CBF’s and also offer half entrance fees was granted a certificate of excellence and achievements. Thus, a temple Marketing Department, the museum’s (students and elderly citizens) and by travel website TripAdvisor, which dedicated to tell the story, past, present staff keeps constant efforts aimed at free entrance, as set forth under assesses quality in service and facilities. and future, of a squad able of stirring maintaining and updating records and Brazilian law, for children up to 6, nationwide emotions, particularly archives so that they always include people with special needs, in during each World Cup, was erected. the most recent matches, competitions addition to public school students and achievements made by the Brazil and individuals representing In addition to its comprehensive National Team, within all its ranks. organizations engaged with social collection, visits to the museum are projects. interactive experiences to the senses

32 2017 MANAGEMENT REPORT 02. INSTITUTIONAL 33 The Museum of the Brazilian National Team welcomed some memorable visitors, who Visitation further contributed to emphasize the importance of the collection, such as: • The player deemed the best of all time, Edson Arantes do Nascimento – Pelé, close to celebrating his 77th birthday; Between fans, admirers, regular somewhat in comparison to the • Winner of the 1970 World Cup Jairzinho “Furacão”; or famous people, around 17,600 previous year, when 22,000 people individuals visited the museum attended. • Victors of the 1994 World Cup Bebeto and Cafu; throughout 2017. This figure shrinked • A Chinese government committee representing the city of Zhuhai.

Moreover, the administration organized groups of children were able to visit, special programs throughout the year: enjoy and record their visit to the free entrance for parents on Parents’ temple of the Brazil National Team. Day in August; and on 12 October, for During this day, over 400 children from Childrens’ Day, at which time several social projects visited the museum.

34 RELATÓRIO DE GESTÃO CBF 2017 02. INSTITUTIONAL 35 Partnership with the National Archives

A special distinction worth noting is that CBF and the National Archives signed an agreement of mutual collaboration. The main goal, in accordance with the General Director of the National Archives José Ricardo Marques, is “to safeguard Brazil and CBF’s story, which tells the story of society and nation through sociological and anthropological traits that recount the story of Brazilian football”.

The General Director of the National Archives visits the Museum of the Brazilian National Team.

According to the CBF Archive and Memory Department manager Antônio Napoleão:

Comparative table on Visitor numbers per year “the partnership will National Archives shall enable mutual efforts, assist in regards to 25 22 17.6 2015 whereby the organization guiding and arranging 20 shall collaborate in the photographic, 15 12 2016 identifying images, items film and personal file 10 2017 5 and film clips, and the archive”. 0

VISITORS: in thousands of persons Source: Marketing Department/CBF

36 2017 MANAGEMENT REPORT 02. INSTITUTIONAL 37 3 NATIONAL TEAMS NATIONAL Youth rank squads also had important and distinguished participations in their competitions throughout the year, among which the following deserve special 3 NATIONAL TEAMS acknowledgement:

• Title of the U-17 Men’s South American Championship (Chile);

This chapter addresses achievements Nevertheless, the first match of the • Second place finish in the U-15 Men’s South American relating to one of the main and most year played by the main Men’s Team Championship (Argentina). important roles pertaining to the was surrounded by a very particular Brazilian Football Confederation: to atmosphere which was distinct from encourage, develop and enable the that of any other match – the outcome best possible working conditions for was what mattered the least. This the Brazil National Football Team, event showcased a profound sense The main Women’s National Team also rounded off the year with excellent results following irrespective of its rank – men’s and of solidarity: CBF organized a match their conquer of the “Marvel Track Cup”, an international tournament played in China. women’s, main teams and youth ranks. between Brazil and Colombia at Nilton It will attempt to submit an overview Santos Stadium (Engenhão) in Rio on the most significant moments de Janeiro, with the aim of raising these teams had throughout the 2017 funds for families of the victims of the season. Under the management and airplane disaster with press members coordination of the National Teams and the Associação Chapecoense Department, the teams had significant de Futebol team that took place in participations in the competitions and November 2016. tournaments they played. Moreover, the match was a tribute Unlike in the previous year, when it to the heroic survivors and to the faced and had to overcome certain Colombian people, who carried out challenges, the main Men’s National invaluable and immediate rescue Team already began 2017 leading efforts to victims of the accident. the 2018 FIFA World Cup South Consequently, around 20,000 people American Qualifiers and kept up solid watched Brazil defeat Colombia 1-0 performances until its very end. Coach and, additionally, contributed to raising Tite and his coaching staff were able to nearly R$ 1,200,000, sum that was follow up on and, therefore, consolidate entirely collected by those in need. the work carried out by them, which remained at a high level and is supported by the subsequent results that will be submitted hereinafter.

40 2017 MANAGEMENT REPORT Wrapping up its participation in the tournament, Brazil defeated Chile 3-0 in São Paulo (Palmeiras Arena). Having ended the year with these results, the Brazil National South American Qualifiers Team was the first team to secure a place at the 2018 FIFA World Cup after attaining the necessary amount of points in the 14th round, four rounds before the end of the competition. With the end of the Qualifiers, Brazil finished 2017 as the dominating leader with 41 points earned, 10 more than Uruguay, who finished as runners-up with 31 points. Brazil’s first World Cup Qualifier match took place in March and showed for an impressive Completing the group of teams representing South America at the World Cup were result (4-1) against one of its main South American rivals, Uruguay, while playing as the Argentina and Colombia, who finished third and fourth, respectively. visiting side in Montevidéu. Next, and now playing as the home squad in São Paulo, the team had another significant win, this time over Paraguay (3-0).

In August, the side faced another tough opponent, Ecuador, playing in Porto Alegre (Grêmio Arena). Once again, the Brazil National Team came out on top, in spite of a closer result: 2-0. In September and in the beginning of October, the qualifying tournament proceeded 3.1 MAIN NATIONAL TEAM STATISTICS with two matches and even tighter results: 1-1 against Colombia in Barranquilla and another 0-0 draw against Bolívia in the mountains of La Paz. The purpose of this chapter is to submit significant statistical data evidencing Brazil National Team performances, in addition to other information that exhibits the impressive results achieved by these squads in the competitions they played. Below, you will find the Final Qualifying Results – South American Qualifiers number of countries visited throughout the season.

NATIONAL GOALS GOAL MATCHES WINS DRAWS LOSSES GOALS POINTS POSITION TEAMS IN FAVOR SUFFERED DIFFERENCE SCORED BRAZIL 18 12 5 1 41 11 30 41 1º URUGUAY 18 9 4 5 32 20 12 31 2º Countries Visited ARGENTINA 18 7 7 4 19 16 3 28 3º COLOMBIA 18 7 6 5 21 19 2 27 4º After having travelled abroad visited 16 countries both in 2016 as PERU 18 7 5 6 27 26 1 26 5º significantly in 2015, the Brazil well as in 2017, playing either friendly CHILE 18 8 2 8 26 27 -1 26 6º National Team, in each one of its matches or official competitions. In PARAGUAY 18 7 3 8 19 25 -6 24 7º ranks, recorded a 33% cutback in their pursuit of titles and representing ECUADOR 18 6 2 10 26 29 -3 20 8º its international participations and the country overseas, our squads BOLIVIA 18 4 2 12 16 38 -22 14 9º kept up the number of visits to other played against the five World Cup VENEZUELA 18 2 6 10 19 35 -16 12 10º countries in the last two years: it Champion sides.

Total Number of Countries Visited by the Brazil National Team – Yearly Figures

30 24 25

20 16 16

15

10

5

0

2015 2016 2017 Source: CBF – National Teams Department

03. NATIONAL TEAMS 43 Tournament Participation

The Brazil National Teams, in all its ranks, participated in all in 11 competitions in 2017, as opposed to 14 participations in the previous year.

COMPETITION GENDER SOUTH AMERICAN QUALIFIERS – 2018 FIFA WORLD CUP MEN’S U-20 SOUTH AMERICAN CHAMPIONSHIP MEN’S TOULON TOURNAMENT MEN’S U-17 SOUTH AMERICAN CHAMPIONSHIP MEN’S MONTAIGU TOURNAMENT MEN’S U-17 FIFA WORLD CUP MEN’S U-15 SOUTH AMERICAN CHAMPIONSHIP MEN’S U-15 NIKE FRIENDLIES MEN’S MARVEL TRACK CUP WOMEN’S FOUR TEAM TOURNAMENT WOMEN’S 3.2 MAIN MEN’S NATIONAL TEAM U-20 NIKE FRIENDLIES WOMEN’S

The five-time World Champions played 11 matches in the season, including five friendly Source: CBF/National Teams Department matches, among which it suffered its only defeat of the year against Argentina in a match played in Melbourne, Australia. In the other 10 matches, the squad recorded 7 wins and 3 draws. In regards to the official competition played at this time, we must highlight the six 2018 FIFA World Cup South American Qualifier matches, with Brazil having a record of 4 wins and 2 draws. Taking into account matches played by the teams’ within Brazil and their distribution per region, matches took place in the North (Manaus), Southeast (RJ and SP) and South (Porto During the season, both coach Tite as well as his coaching staff’s focus were aimed at Alegre) regions of Brazil. securing a place at the World Cup in Russia, which was successfully attained ahead of time, as already mentioned. Moreover, friendly matches were organized and used to observe players having good seasons in their clubs, with the aim of assessing those who could be called-up to defend Brazil at the 2018 World Cup.

44 2017 MANAGEMENT REPORT 03. NATIONAL TEAMS 45 Fifty-five players from 32 national and international clubs were called-up.

30 trips aimed at on-site coach and club premise The Women’s National Team show off their Marvel Track Cup medals. observations 148 matches attended +25 in person professionals 3.3 WOMEN’S NATIONAL TEAM STUDY engaged STATISTICS Throughout the season, the main participations of said host nation, as Women’s National Team had its share well as North Korea and Mexico. of both good and bad results, which led to replacing the coach and coaching Taking into account the entire season During the three years ranging staff. Nevertheless, it is worth noting record, the team recorded 7 wins, from 2015 to 2017, the team played 2,000 that the squad finished the year 2 draws and 5 losses, and a total of 37 matches, with a record of 25 wins, hours of data under the helm of coach Vadão and 32 goals scored. During this time, the 8 draws and 4 losses. analysis with an important title to boast, the squad travelled to 7 countries, playing Marvel Track Cup Tournament, which in North and South America, Oceania, was played in China and included Asia and Europe.

Match Results – Main National Team – Yearly Figures Match Results – Main Women’s National Team – Yearly Figures

12 10 10 25 23 8 18 8 7 20 15 14 6 15 11 4 3 3 10 7 2 2 6 4 5 2 1 1 5 2 3 2

0 0

2015 2016 2017 2015 2016 2017

WINS LOSSES DRAWS Source: CBF – National Teams Deparment WINS LOSSES DRAWS MATCHES Source: CBF – National Teams Department

46 2017 MANAGEMENT REPORT 03. NATIONAL TEAMS 47 3.4 YOUTH RANKS

In this chapter, we will discuss that specific group of athletes deemed “youth rank” players who still find themselves in physical and technical stages of development, in addition to learning tactical skills before they are promoted to the main ranks.

These individuals are developed in clubs as well as encouraged by CBF, who hires expert professionals to lead youth rank teams and, thus, carries out call-ups exactly in the same manner as it does with players of its main team: scouting, studying and assessing the potential of promising stars and offering the best possible training conditions to those who, thanks to their potential and performances, are drafted to defend youth rank teams.

The Brazil U-20 National Team face Venezuela in the South American Championships hosted by Ecuador.

Youth ranks are divided into age • U-20 (men’s and women’s, whereby groups, generally in accordance with athletes aged 20 or less, as of the how competitions are structured so as concerning year, can play); to enable fairness in these matches. Through its National Teams U-17 South American Championships Thus, they are split into the following • U-17, for both boys and girls who Department, CBF planned, called- hosted by Chile. It is worth noting that categories: turned 17 until the concerning year; up, prepared and led 5 of the 6 olympic teams (men’s and women’s), existing youth rank teams in their whenever drafted, are deemed youth • U-15, for male and female players concerning competitions during the rank teams as well, and since they who turned 15 until the concerning year; season. Whereas Brazil played 10 were not called-up during the year tournaments in 2016, it participated in at hand, this consequently resulted 8 competitions in 2017 and managed to in less participations than that of the lift an important trophy: the XVII Men’s previous year.

48 2017 MANAGEMENT REPORT 03. NATIONAL TEAMS 49 The Brazil U-17 Men’s National Team celebrate the South American Championship title in Chile.

See the graph below for consolidated figures pertaining to Brazilian youth rank squads Men’s (U-20, U-17 and U-15):

2017 Consolidated Figures – Men’s Youth Ranks Among men’s teams, there was also a In the final match played against great deal of preparing, travelling and the home side, Brazil dominated 50 competitions played by all three ranks. actions through a high-level and 45 Efforts were rewarded following the compelling playing style and thrashed 45 second place finish at the U-15 South their opponents 5-0. In spite of solid 40 American Championships played in performances by each team member, 35 Argentina, as well as the U-17 South Alan (Palmeiras), who scored three 31 American Championships title lifted in times, in addition to Paulinho (Vasco) 30 23 Rancagua (Chile). and Lincoln (Flamengo), who scored 25 18 1 goal each, were highlights of the 20 Led by coach Carlos Amadeu, the U-17 match. To top it off, the Brazilian side 15 12 10 squad had an undefeated run while had the top scorer of the competition, 9 claiming the championship. The team namely, Vinícius Junior (Flamengo), 10 7 7 4 4 4 3 undoubtedly had a flawless campaign to who pushed the ball into the net 7 5 2 1 show for, recording 7 wins and 2 draws times. 0 0 in 9 matches, with 24 goals scored and U-20 U-17 U-15 TOTAL only 2 conceded.

MATCHES WINS DRAWS LOSSES

Source: CBF – National Teams Department

50 2017 MANAGEMENT REPORT 03. NATIONAL TEAMS 51 2017 Consolidated Figures – Women’s Youth Rank Teams

3,5 3 3 3

2,5 2 2 2

1,5 1 1 1

0,5 0 0 0 0 0 0 0 U-20 U-17 TOTAL

MATCHES WINS DRAWS LOSSES Source: CBF – National Teams Department

Women’s We note that numbers encompass both U-20 If we make a global assessment on results achieved by each youth rank team by the end of and U-17 categories, the 2017 season, we find that 48 matches were played with 101 goals scored, amounting to whereas the latter, in spite an average of approximately 2.1 goals per match. Following the method we used to submit men’s teams numbers herein, of not having played official in this chapter we will introduce matches, underwent at least consolidated figures pertaining to 3 annual training terms at Consolidated Figures – All youth rank teams women’s youth rank teams, which can be seen in the 2017 results graph. Granja Comary.

120 108

100

80 65 63

60 48

40 27 35 33 16 15 20 13 8 7 0 2015 2016 2017

WINS LOSSES DRAWS MATCHES

Source: CBF – National Teams Department

03. NATIONAL TEAMS 53 4 REGISTRATION, TRANSFER AND LICENSING REGISTRATION, Issues related to non-compliances with Football Athlete Registration and Transfer Regulations and National Intermediares Regulations shall be settled by the National 4 REGISTRATION, TRANSFER Dispute Resolution Chamber, pursuant to the General Competitions Regulations. Sanctions AND LICENSING foreseen for said cases are included under the CNRD regulations.

This chapter will address activities All matters mentioned herein relate to and enterprises comprising roles the 2017 season and it is worth pointing and duties of the Registration, out that in its last working week of 4.1 REGISTRATION – ATHLETE AGREEMENTS Transfer and Licensing Department the year, the DRTL Department was (DRTL) of the Brazilian Football disclosing new regulations for 2018: Confederation. The department is in Football Athlete Register and Transfer Following the trend of past years, the Throughout the three years ranging from charge of procedures aimed at player Regulations, National Intermediaries volume of athlete agreement registrations 2015 to 2017, 199,827 agreements were registration, a requirement needed to Regulations and the National Chamber of remained elevated. Compared to the signed and made official concerning enable their participation in the wide Dispute Resolution Regulations (CNRD). previous season, the number of registered football athletes, taking into account host of tournaments CBF organizes agreements showed for a significant 35% both professional and amateur-level and helps to promote. Furthermore, it In regards to player registration and increase, amounting to a total of 80,624 players. describes national and international transfer procedures, the following agreements signed in 2017. player transfers, irrespective of these are new features not included in the being professional or at amateur level, previous year’s report: between national and international clubs. Finally, it explains what the CBF Club Licensing Program is. • Agreement termination – players Number of Signed Agreements – Yearly Figures are not allowed to play matches on This chapter also intends to submit an the termination date, regardless of overview on activities undertaken at it not having been published in the 90,000 80,624 the same time concerning the Football Daily Newsletter (‘Boletim Informativo 80,000 Club Licensing Program. In a dedicated Diário’, BID). 70,000 section, it will discuss the current • Development of a sports initiation 59,514 59,689 status of the entire implementation record for 12 and 13-year-old 60,000

procedure, guiding measures for clubs teenagers; 50,000 and explanations deemed necessary. • Obligation to notify CBF on image In brief, this is all about CBF taking rights agreements (if applicable); and 40,000 charge of its leading position in the • Effective 1 January 2018, a signed 30,000

continent and its commitment towards copy of the work permit, along with the 20,000 transparency and relentless football- player’s employment agreement, must 10,000 related education and training. also be sent. 0 2015 2016 2017

Source: CBF/DRTL

56 2017 MANAGEMENT REPORT 04. REGISTRATION, TRANSFER AND LICENSING 57 Regional Analysis First Professional Agreements – Overall Annual Registrations 35,000 30,728 29,878 30,000 When looking at the regional distribution of agreement registrations, we find that the 25,000 Southeast region remains the busiest one, with an overall figure of 18,227 agreements, 20,000 15,000 which can be explained by the fact that it is Brazil’s wealthiest economic region. The 8,076 second region concentrating most registrations is the Northeast that, when compared to 10,000 other parts of Brazil, has the greatest number of federation units. Below, you can see a 5,000 graph detailing these overall figures. 0

2015 2016 2017 Source: CBF/DRTL Number of Agreements per Region – 2017 4.2 AGREEMENTS PER AGE GROUP 5,587

14,042 Following-up on the data analysis Age groups are evaluated and total 7,246 of the previous section, we further numbers pertaining to each one are split the overall number of athletes shown below: into age groups who signed their first 18,227 professional registration in 2017. • Young players from youth ranks up to 17 years of age corresponded to 1,585 NORTH By looking at these numbers, we are 15,125 agreements signed; NORTHEAST able to tell that the highest number of • Those older than 17 and aged up to 20 agreements takes place between the 20 pose 2,390 agreements; CENTER-WEST to 23-year age group – corresponding • Athletes at least 20 and no older than SOUTHEAST to 30%, followed closely by total player 23 amounted to 2,419 agreements; registrations with ages between 17 SOUTH • Finally, players aged 23 or more Source: CBF/DRTL and 20, amounting to 29.6% of the total signed 1,682 agreements. number of registrations.

First Professional Registration Total Number of First Agreements Signed per Age Group – 2017

3,000 2,390 2,419 Here, we find numbers related to players who either changed their amateur-level agreement 2,500 by signing a professional agreement, or signed their first agreement with a professional club. 2,000 1,585 1,682 1,500 In a comparison between 2015 and 2016, we can see that there was a significant decrease 1,000 in the number of first professional agreements signed. Looking at the previous year alone, 500 this figure amounts to 29,878 registrations, as opposed to 8,076 in 2017. The following table 0 portrays figures related to the last 3 years. + 17 YEARS 17 TO 20 20 TO 23 OLDER THAN 23 Source: CBF/DRTL OLD YEARS OLD YEARS OLD YEARS OLD Fonte: CBF/Diretoria de Seleções

58 2017 MANAGEMENT REPORT 04. REGISTRATION, TRANSFER AND LICENSING 59 4.3 AGREEMENTS PER GENDER

When making a comparative analysis This enables us to reason that there is on agreements per gender, we can still a significant potential for growth in perceive a considerable increase, in regards to women’s football agreements its development and constant overall figures, in women’s agreement signed in the country. upgrading. registrations in comparison to previous years, although current numbers still Whereas 1,647 women signed The measure poses a substantial fall significantly short when compared agreements in 2016, this figure reached “Coach registrations are breakthrough for football’s to overall men’s numbers. Whereas the the sum of 3,263 in 2017, signaling a sports passports for said framework and registrations total number of women’s agreements in 98% increase. The graph below brings professionals, enabling them will now be mandatory for clubs 2016 posed 2% of men’s total agreements forth a detailed analysis on these playing in any division of the signed, this number rose to 4% in 2017. statistics. to have their entire work record Brazilian Championship, pursuant safeguarded. It is a future to what is already set forth under specific, current regulations. Number of Agreements per Gender – Yearly Figures guarantee that basic rights, such as social security rights, The first coach favoured was are ensured. Coaches will thrilled with the opportunity. 100,000 77,361 58,095 58,039 also have the benefit of CBF- “I am extremely pleased 50,000 granted life and personal hazard with this possibility. It is a 1,419 1,647 3,263 insurance under the same terms milestone for our professional 0 as that offered to players.” class and also because I had – explains the CBF Head of the the opportunity to be the first 2015 2016 2017 Registration, Transfer and Club Licensing Department Reynaldo one to represent coaches. MEN’S WOMEN’S Source: CBF/DRTL Buzzoni. This act poses guarantees and Coach registrations were an enhanced stability, which approved by Série A, B and C by itself is highly significant 4.4 REGISTRATION – COACH AGREEMENTS Brazilian Championship clubs for the future of football and at Technical Councils held in February. Nevertheless, CBF had Brazilian coaches” – stated The 2017 season posed a very special also with the aim of constantly making been examining the proposal Fernando Tonet of Piauí State’s moment for the DRTL Department in upgrades to the sport, CBF introduced since 2016. This measure Parnahyba club. regards to procedures related to the a working agreement registration enables the organization to inclusion of football professionals. procedure for coaches which now foster improved benefits to As a result, the DRTL Department While pursuing demands not only follows very similar procedures to those professionals working in Brazilian registered, in all, 368 coaches limited to the professional class, but related to player-signed agreements. football, thereby contributing to in 2017.

60 2017 MANAGEMENT REPORT 04. REGISTRATION, TRANSFER AND LICENSING 61 4.5 TRANSFERS International – players returning to Brazil

Transactions through which Brazilian to search for quality players keeps International – players leaving for overseas clubs bring back footballers playing motivating Brazilian clubs to carry out overseas remained elevated, reaching this kind of transaction. the sum of 890 in 2017. The high competitition-level of domestic Figures relating to player “importations” The 2017 season recorded an increase in the number of players “exported” by Brazilian tournaments and consequent need to Brazilian clubs are submitted below: clubs, in other words, in transfers from Brazilian to foreign clubs. In all, 1,630 transfers were registered for players leaving for overseas, in comparison with 1,372 in the previous year, signaling a near 19% rise in regards to the 2016 season. Total number of athletes coming back to Brazil – Yearly Figures

890 1,630 1,220 900 2015 880 866 860 2016 840 818 2017 820 800 780

1,372 2015 2016 2017 Fonte: CBF/DRTL

Following what took place in the two previous years, Portugal kept its spot as the country In breaking down this evaluation further, we found that 3 countries lead negotiations with that most “imported” professional Brazilian players in the 2016-2017 term. In 2017, Brazilian clubs: Portugal, which kept its leading position two years in a row - releasing 113 Portugal signed 392 athletes, followed by the United States in second, with 120, and Spain players this year; runners-up Japan, with 37 athletes, followed by China, with 36. Below, in third with 94. you can see a comparison with the 2016 season.

TOTAL TOTAL TOTAL TOTAL NUMBER OF NUMBER OF NUMBER OF NUMBER OF 1st 541 3rd 1st 606 3rd 1st 151 3rd 1st 186 3rd PORTUGAL ATHLETES GERMANY PORTUGAL ATHLETES SPAIN PORTUGAL ATHLETES URUGUAY PORTUGAL ATHLETES CHINA 342 2nd 91 392 2nd 94 89 2nd 31 113 2nd 36 ATHLETES SPAIN ATHLETES ATHLETES USA ATHLETES ATHLETES ARGENTINA ATHLETES ATHLETES JAPAN ATHLETES 108 120 31 37 2016 ATHLETES 2017 ATHLETES 2016 ATHLETES 2017 ATHLETES

Source: CBF/DRTL Source: CBF/DRTL

62 2017 MANAGEMENT REPORT 04. REGISTRATION, TRANSFER AND LICENSING 63 National 4.6 INTERMEDIARIES

In this section you will find figures relating to player transactions between Brazilian clubs. Herein, we disclose significant The DRTL Department reviews and During the 2017 season, these numbers basically relate to definite transfers or loans figures relating to intermediaries. updates said regulations, updating entailing financial compensation. In accordance with the National CBF intermediary registrations Intermediaries Regulation, these are whenever new requests come in, are In all, 16,959 transfers were recorded, among which only 40 included some kind of financial either individual persons or legal evaluated and approved. The results of exchange. Said transfers amounted to R$ 81,310,250 and portrayed a 14% absolute value entities that perform “as player/football these efforts can be verified through growth in comparison with the previous year. Check the table below for a breakdown of coach and/or club representatives, disclosure of names of authorized these operations. whether free of charge or through professionals or companies, which is compensation, with the purpose undertaken from time to time at CBF’s of negotiating or renegotiating the homepage. TRANSFERS ENTAILING FINANCIAL SUMS TOTAL NUMBER SUM signing, amendment or renewal of DEFINITE 28 R$ 78,401,250 sports development and/or player LOANS 12 R$ 2,909,000 transfer employment agreements”. TOTAL 40 R$ 81,310,250

Source: CBF/DRTL At the end of the 2017 season, the DRTL Department accounted for 552 registered intermediares in CBF’s registration system, in comparison with 251 registered professionals in the previous year – thereby signaling a near 120% increase. After examining the ratio of intermediaries to total number of transfers, we have the following figures to submit: Financial Sums - International Transfers

YEAR NATIONAL INTERNATIONAL TRANSACTIONS WITH TOTAL TRANSFERS TRANSFERS INTERMEDIATION PERCENTAGE The season remained quite busy, From Brazil to overseas From overseas to Brazil particularly in regards to international 2016 12,793 2,190 344 2.3% transactions. During both yearly 2017 16,959 2,520 492 2.9% transfer windows in 2017 (January to April and between June and July), Source: CBF/DRTL there was a significant increase in financial sums concerning transfers 2016 2017 from Brazil to overseas in comparison with the previous season. The opposite Additionally, we must note that, in case there are any, all intermediaries involved in registered a slight decline, in other negotiations must be reported in each transfer carried out. words, transfers from overseas to R$ 645,125,738 R$ 967,719,939.03 Brazil, as shown in the graph on the In regards to intermediation-related sums, there were 144 operations with declared sums, right-hand side. R$ 212,464,373 R$ 115,455,159.17 amounting to R$ 23,388,108.

Source: CBF/DRTL (2017 figures estimated from Dollar/Euro exchange rates taking into account the PTAX on 28 March 2018).

64 2017 MANAGEMENT REPORT 04. REGISTRATION, TRANSFER AND LICENSING 65 Comparative table on Intermediation deals - 2016/2017

GENERAL FIGURES/INTERMEDIATIONS 2016 2017 REGISTERED INTERMEDIATIONS 251 552 TRANSFERS INVOLVING INTERMEDIATION 344 492 OPERATIONS INCLUDING DECLARED SUMS 72 144 INTERMEDIATION SUMS R$ 18,517,478 R$ 23,388,108

Source: CBF/DRTL

It is worth noting that figures relating to intermediaries’ participation in national transactions portray numbers disclosed by parties concerned to CBF. Sums relating to payments carried out by intermediaries resulting from operations undertaken are submitted by said parties, pursuant to Attachment No. 3 of the National Intermediaries Regulations. Nevertheless, the total number of agreements celebrated in partnerships with intermediaries is disclosed by clubs in charge of celebrating them.

Club Licensing Managers of South American federations meet at the CBF headquarters. 4.7 CLUB LICENSING

Club licensing is one of CBF’s main The licensing model conceived and In light of several discussions that took Clubs’ information and documentation tools aimed at increasingly training and introduced by the organization has two place, there are no remaining doubts that reporting is centered in a single developing Brazilian football as a whole main goals: clubs have individual responsibilities procedure carried out at the throughout the two coming years. to take on a high management level Confederaton. Decisions on whether to • To develop clubs – particularly and uphold their financial stability. grant or not licenses are exclusively up In tune with FIFA and CONMEBOL’s since it will enable to identify and Thus, licenses will enable clubs to truly to the independent Licensing Granting standings on the issue, in 2017 CBF bolster enhancement of important club progress and reach in the best possible Commission, which assembles annually introduced its own Brazilian club departments, such as youth rank teams, way all required criteria each year, and to discuss licensing requirements licensing program after publishing for instance; and always having CBF’s due support and submitted by clubs. a new edition of its Club Licensing • Benchmarking – in rendering technical guidance, in addition to that of Regulations. possible the consolidation of figures expert partners. and comparative analysis between organizations and their concerning administrations in the wide host of activities they carry out.

66 2017 MANAGEMENT REPORT 04. REGISTRATION, TRANSFER AND LICENSING 67 4.8 RETIREMENT CERTIFICATE Throughout 2017, CBF carried out several technical visits to sports organizations playing in the Série A Championship. The purpose was Another key role that the DRTL CBF issues the concerning certificates, to have an up-to-date diagnosis on Department carries out, alongside the which are key to proving how long important technical criteria in key Archive and Memory Department, is the each player played. Consequently, fields within football, such as, for recovery of old athlete registrations. they are able to gather all required instance, stadia and training center This work includes searching for documentation aimed at receiving their infrastructure, technical staff training, documentation required so that players earned benefits. administrative and legal frameworks who oftentimes have not played for and financial situation (balances and a long time can prove how long they Between 2015 and 2017, the DRTL budgets). played football. This is of the uttmost Department issued 1,507 retirement “We were fortunate to be able importance for former players who wish certificates for former players whose At the end of the year, FIFA and to request their earned retirement at concerning registrations were identified CONMEBOL held at the CBF to host every South American social security offices. by CBF. We recorded a 26% increase in headquarters a number of meetings Federation here. Next year, certificate issuing from the previous year aimed at discussing and fostering the Licenses will also apply to the After identifying documents and proving to the 2017 season. Below, you will find development of licensing systems, athletes’ years of service to the sport, this progress in regards to the last 3 years. which featured participations of ‘Copa Libertadores’ (‘Libertadores Club Licensing Managers of the Cup’) and ‘Copa Sul-Americana’ 10 (ten) South American national Retirement certificates issued football associations, in addition to a (‘South American Cup’). The main representative of the Italian Football novelty is the introduction, which Federation (FIGC). will take place at a later stage, 800 682 “Our aim was to enable each of financial criteria that will be 700 one to show and teach us gradually tested and commonly 600 540 applied to each South American 500 how they developed their 285 introduction model at national country” – assessed the CBF Licensing 400 Manager Enio Gualberto. 300 levels and problems that 200 arose until now for clubs. The In all, 24 (twenty-four) clubs participated in the licensing procedure 100 idea is to become acquainted with the 2018 season already in sight. 0 2015 2016 2017 with the best practices and, In all, CBF expects that 44 (forty-four) Source: CBF/DRTL additionally, to set forth clubs will be licensed by the end of said season, since Club Licenses will be in requirements that will be force and shall apply effective 2019 to The Registration, Transfer and Licensing Department will carry on with its efforts, with the aim of enabling that each former player who one day was registered at CBF is duly enrolled introduced effective next year”. Brazilian Championship Séries A and B. in the control system and, moreover, if possible, is able to secure official confirmation – commented the CONMEBOL Head of allowing them to receive their benefits. Club Licensing Mariano Zavala.

68 2017 MANAGEMENT REPORT 04. REGISTRATION, TRANSFER AND LICENSING 69 5 COMPETITIONS • Supervising activities carried out Once again, it posed a significant by the Competitions Ombudsman challenge to CBF, particularly in COMPETITIONS Department, in accordance with Law no. regards to planning, following-up 5 10.671/031; on and coordinating events. The • Requiring disclosure of Stadia Competitions Department carried Technical Reports, pursuant to Law No. out efforts aimed at enabling the 10.671/032; organization to coordinate 16 • Inspecting stadiums, as well as tournaments, in addition to the second inspecting and certifying their pitches edition of the already well-established This chapter will provide an overview • Monitoring lawsuits lodged at ruling for the season; ‘e-Brasileirão’, which is the virtual on one of the Brazilian Football courts holding sports jurisdiction, version of the Brazilian Série A Confederation’s main roles: planning, particularly the ‘Superior Court of Following what took place in 2016, the Championship, and was launched in promoting and coordinating regional Sports Justice’ (‘Tribunal Superior de 2017 season featured a busy schedule the Pro Evolution Soccer (PES 2017) and national championships, whereby it Justiça Desportiva’, STJD), in addition to with many competitions and matches games platform. leads and carries out activities in a wide potential rulings or sanctions enforced relating to over 160 clubs in the entire host of clubs within the entire country. upon athletes and clubs; country.

Within the organization, this • Recording rulings related to said challenging duty is taken on by the legal bodies in an internal system, with Competitions Department (DCO). Just the aim of following-up on athletes’ to exemplify and give a brief idea on suitability to play in tournaments the challenging work the department pursuant to regulations; Number of Matches undertakes, it is worth noting that in • Monitoring and disclosing possible order to fulfill its mission it breaks and necessary changes made to match down its activities into specific and schedules to all parties concerned; Compared with the previous year, 2017 featured 84 additional overall matches. Matches complementing procedures, as played throughout the season took place in 182 stadia, that is to say, 9 more than in 2016. explained below: • Developing and updating annual team rankings pursuant to previously • Planning and drawing up an annual defined criteria, particularly taking competitions calendar as well as into consideration performances in concerning draws setting up matches; competitions; Stadia vs. Matches - Yearly Figures • Developing general and specific • Ensuring that competitions uphold regulations for coordinated concerning federal legislation, in 2,500 tournaments; addition to: 2,000 1,836 1,920 1,500 1,757 • Full-time overview and management I - Football match rules set forth by the of matches pertaining to several International Football Association Board; 1,000 tournaments, many of them with II – FIFA regulatory acts; 500 169 173 182 ‘in loco’ attendance, in other words, III – CBF regulatory acts; 0 watching them live at stadiums, which is IV – The Brazilian Sports Code of Justice; defined according to the importance and V – National and international doping 2015 2016 2017 risks pertaining to the match; control regulations; STADIUMS MATCHES Source: CBF/Competitions

72 2017 MANAGEMENT REPORT 05. COMPETITIONS 73 Competitions Organized Competition Evolution

In fulfilling its mission to seek the an important title, the winner ensured The aforementioned novelties evince figures pertaining to competitions constant development of Brazilian a spot at that division’s Libertadores CBF and the DCO Department’s efforts organized and inclusion of new clubs football, CBF also increased the number Cup. After two thrilling derbies between in promoting and enhancing existing that are granted considerable support of competitions in comparison to the Atlético-MG and Cruzeiro-MG (0-0 tournaments, in addition to planning by the organization. The information previous year. Whereas 2016 held 14 and 2-2) at the Arena Independência and carrying out new ones. Thus, it provided below objectively supports tournaments, 16 took place in 2017, Stadium in Belo Horizonte, the blue is imperative to disclose increased this development. reaching a high level of participation, jersey team (Cruzeiro) were the victors competition and quality. These were after winning the penalty shoot-out. broken down into 12 national and 4 regional competitions, among which 7 The Aspiring Players’ Brazilian CBF-coordinated Competitions were professional men’s competitions, Championship was another novelty 2 were women’s tournaments and 7 that engaged the country’s main clubs. related to youth ranks teams. Following what some international 19 leagues have been doing, which is to 16 A highlight includes the creation of increasingly fund their U-23 ranks 14 11 13 two new youth ranks competitions, aimed at ensuring its active players 10 + 07 the ‘Aspiring Players’ Brazilian remain in a key age group development 172% Championship’ (‘Campeonato Brasileiro “window”, CBF introduced this de Aspirantes’), a U-23 competition, and competition that was well received by the ‘U-20 Super Cup’ (‘Supercopa Sub- several clubs. In addition to competitive 2012 2013 2014 2015 2016 2017 2018 20’), two major innovations introduced matches, this tournament introduced by the Competitions Department in the promising stars to professional teams. season. Both tournaments resulted from Cup winners Internacional, for instance, discussions with Brazilian club youth concluded their participation in the Increase in numbers of clubs in competitions that promote access to Brazilian football’s elite ranks officials and aimed at expanding tournament expecting to promote six knowledge on existing gaps in these players to their main team. ranks. 91 Work undertaken showcases and 87 87 87 87 Thus, it was decided that the U-20 bolsters support efforts the organization + Super Cup would be played by the U-20 has been providing developing athletes 68 68 Brazilian champions and the U-20 Brazil and teams where the country’s new 64 70% FOURTH Cup champions. In addition to securing generations of stars will develop. DIVISION 40 40 40 40

+ 42% BRAZIL CUP

2012 2013 2014 2015 2016 2017

Source: CBF/Competitions Department

74 RELATÓRIO DE GESTÃO CBF 2017 05. COMPETITIONS 75 Brazilian Championship

There is no denying the fact that the down into séries A, B, C and D – thereby We must point out that clubs comprising CSA of Alagoas State claimed the 2017 Brazilian Championship is the main comprising four distinct leagues. On the Séries C and D are granted key financial Série C Championship, followed by competition that CBF coordinates and other hand, its women’s competition is split support by CBF, which bears all team- Fortaleza (CE), Sampaio Correa (MA) and supports. Its men’s tournament is broken into séries A1 and A2 since the 2017 season. related logistic expenses throughout São Bento (SP). Finally, Série D had 68 their concerning tournaments. This clubs fighting it out for the trophy, which means that the organization bears all was claimed by Operário (PR) and had BRAZILIAN SÉRIE A FOOTBALL BRAZILIAN SÉRIE B FOOTBALL teams’ transport, lodging and meal- Globo (RN) as runners-up, in addition CHAMPIONSHIP – 2017 CHAMPIONSHIP – 2017 related costs whenever they need to to Atlético (AC) and Juazeirense (BA), travel to play matches taking place who rounded off the group of clubs who POSITION PTS POSITION PTS outside their states – in other words, in were granted access to the 2018 Série C “away matches”. This relates to direct Brazilian Championship. 1º CORINTHIANS - SP 72 1º AMÉRICA - MG 73 financial support provided to 88 clubs. 2º PALMEIRAS - SP 63 2º INTERNACIONAL - RS 71 Total sums relating to these operations SÉRIE C - 2017 are disclosed in this report’s Financial 3º SANTOS - SP 63 3º CEARÁ - CE 67 Chapter. 4º GRÊMIO - RS 62 4º PARANÁ - PR 64 In regards to sports results, Sport Club CHAMPIONS 5º CRUZEIRO - MG 57 5º LONDRINA - PR 62 Corinthians Paulista were the winning side of Série A. Moreover, Palmeiras, CSA - AL 6º FLAMENGO - RJ 56 6º OESTE - SP 59 Santos and Grêmio wrapped up their 7º VASCO DA GAMA - RJ 56 7º VILA NOVA - GO 58 participation in the tournament’s top RUNNERS-UP four position. In the Série B, the team 8º CHAPECOENSE - SC 54 8º BRASIL - RS 51 known as the “rabbits”, nickname given FORTALEZA - CE 9º ATLÉTICO - MG 54 9º JUVENTUDE - RS 51 to América Futebol Clube of Minas Gerais State, lifted the trophy, followed 10º BOTAFOGO - RJ 53 10º BOA - MG 50 by runners-up Internacional and Ceará and Paraná, who were promoted to the 11º ATLÉTICO - PR 51 11º PAYSANDU - PA 48 2018 Série A. 12º BAHIA - BA 50 12º FIGUEIRENSE - SC 48 SÉRIE D - 2017 13º SÃO PAULO 50 13º CRICIÚMA - SC 48 14º FLUMINENSE - RJ 47 14º GOIÁS - GO 45 CHAMPIONS 15º SPORT - PE 45 15º CRB - AL 45 OPERÁRIO - PR 16º VITÓRIA - BA 43 16º GUARANI - SP 44 17º CORITIBA - PR 43 17º LUVERDENSE - MT 44 RUNNERS-UP 18º AVAÍ - SC 43 18º SANTA CRUZ - PE 37 GLOBO - RN 19ª PONTE PRETA - SP 39 19ª ABC - RN 34 20 ATLÉTICO - GO 36 20 NÁUTICO - PE 32

Final Brazilian Séries A and B Championship standings for the 2017 season – Source: CBF/Competitions Department

76 2017 MANAGEMENT REPORT 05. COMPETITIONS 77 The Brazil Cup Goals Scored

The 2017 ‘Brazil Cup’ (‘Copa do Brasil’) interviewed representatives of clubs 2017 was clearly a goal-ridden year. In 2016 recorded 4,619 goals scored, finals were a landmark event for the DCO participating in the finals. all, 4,684 goals were scored throughout posing a 2,5 goal average per match. Department. Featuring key participations 1,920 matches, signaling a 2.4 goal The table below introduces a goal by Cruzeiro, Flamengo, Grupo Globo At the finals, clubs wore sleeve patches average per match. In comparison, breakdown per competition. and their concerning federations, the bearing the competition logo, thereby final clashes were filled with activities greatly increasing the worth of these organized by the DCO Department jerseys and turning them into unique that were introduced shortly after the items. In Belo Horizonte, where the semi-final matches. The day after the final match took place, CBF organized Flamengo vs. Botafogo and Cruzeiro vs. its first-ever official press conference 2015 2016 2017 Grêmio matches, CBF held a draw in its the day before the match. The CHAMPIONSHIP X CHAMPIONSHIP X auditorium to see which sides would be Flamengo coach and Cruzeiro captain TOTAL GOALS SCORED TOTAL GOALS SCORED granted home advantages. were present at Mineirão Stadium to BRAZILIAN SÉRIE A CHAMPIONSHIP 897 912 BRAZILIAN SÉRIE A CHAMPIONSHIP 923 attend to the press. BRAZILIAN SÉRIE B CHAMPIONSHIP 925 894 BRAZILIAN SÉRIE B CHAMPIONSHIP 820 These kind of draws had been a very BRAZILIAN SÉRIE C CHAMPIONSHIP 461 435 BRAZILIAN SÉRIE C CHAMPIONSHIP 418 uneventful event until then, merely The final match was itself a very unique BRAZILIAN SÉRIE D CHAMPIONSHIP 427 669 BRAZILIAN SÉRIE D CHAMPIONSHIP 631 aimed at fulfilling regulatory criteria. event featuring an unprecedented Nevertheless, this time around it protocol, visual effects and fan BRAZILIAN WOMEN’S CHAMPIONSHIP 251 215 BRAZILIAN SÉRIE A1 WOMEN’S CHAMPIONSHIP 382 became a true talkshow featuring participation, and both teams entered BRAZILIAN U-20 CHAMPIONSHIP 166 176 BRAZILIAN SÉRIE A2 WOMEN’S CHAMPIONSHIP 197 Felipe Andreoli, Rede Globo’s the pitch ready to continue the show that BRAZIL CUP 418 370 BRAZILIAN ASPIRING PLAYERS’ CHAMPIONSHIP 63 ‘Esporte Espetacular’ show host, who was kicked-off before the match. U-20 BRAZIL CUP 155 150 BRAZILIAN U-20 CHAMPIONSHIP 160 U-17 BRAZIL CUP 194 194 U-20 SUPERCUP 04 WOMEN’S BRAZIL CUP 193 231 BRAZIL CUP 282 NORTHEAST CUP 176 179 U-20 BRAZIL CUP 148 U-20 NORTHEAST CUP 51 108 U-17 BRAZIL CUP 168 GREEN CUP 74 86 NORTHEAST CUP 183 U-20 STATE TEAMS CUP 23 - U-20 NORTHEAST CUP 96 TOTAL 4,379 4,619 GREEN CUP 93 U-20 STATE TEAMS CUP 116 TOTAL 4,684

Source: CBF/Competitions Department

05. COMPETITIONS 79 2017 e-Brasileirão Season Top Scorers

In 2017, CBF organized the second edition created from which representatives of As usual, forwards were relentlessly Atlético-MG), this number of goals fell of the country’s main online football teams Botafogo, Cruzeiro, Vasco, Coritiba, inspired in their quest to score goals significantly short in comparison with competition. It featured 14,351 participants, Corinthians, Atlético-GO, Atlético-MG and for their squads. According to figures, 2017. In this season, the main scorer was which was a near 49% increase in Atlético-PR secured their spots at the they were even more decisive than in Henrique Dourado of Fluminense Football comparison with the first edition. Quarter-Finals. At last, the final match 2016. Whereas said season’s top scorer Club, who pushed the ball into nets 32 took place between Atlético-GO and reached 25 goals scored (Robinho of Club times throughout the year. Sponsored by Pepsi, Brahma and Pro Cruzeiro and was brilliantly won by the Evolution Soccer (PES 2017), which is the Cruzeiro representative player known as company in charge of supplying the game, “Henrykinho”. Top scorers vs. total number of goals – 2017 the ‘e-Brasileirão’ is played by the same teams that qualify for the Brazilian Série 32 A Championship. The virtual tournament, Number of Enrolled Players: 35 30 30 28 27 however, is split into three stages: 25 segmented draft stage, on-site knock out 25 stages per club and final match, which 2016 20 takes place at the CBF headquarters. + 2017 15 The first stage is key in establishing 49% 10 each club’s representatives. After each 5 official club representative of the twenty 0 2017 Série A clubs is picked, groups are 9,627 14,351 HENRIQUE DOURADO FRED BERGSON ANDRÉ JÔ Source: globoesporte.globo.com

80 2017 MANAGEMENT REPORT 05. COMPETITIONS 81 Match Distribution per Region Fan Attendance

An interesting fact that we discovered after examining matches held per region is the One can clearly state that fans’ interest and junior supporters were still increase in match numbers in all five regions of Brazil compared with the previous year. for football in the five-time winning able to watch matches on Sunday The main increment was verified in the Southeast region: 8%. In regards to distribution, World Cup nation remained high this mornings at 11 a.m., which proved the ratio of matches among all regions remained similar to 2016, as can be seen in the season. Due to new features introduced to be the preferred kick-off time for “matches per region” graph below relating to the last three years. and consolidated in regards to new this fan profile. In all, numbers point match kick-off times, spectators have to an average 20,775 attendance (18 been given several options to follow matches). This signals an almost their clubs and idols in CBF-organized 17% increase in comparison with competitions. the previous year, at which time the average attendance was 17,761 Matches per Region – Yearly Figures We can see a rise in fan attendance, spectators. Monday evening matches since the country’s main competition at 8 p.m. also registered significant suffered significantly lower attendance attendance figures, rounding off numbers in the last years due to major weekend matches which accounted for 800 sporting events held in Brazil, and also a 15,729 average spectator attendance 668 700 632 617 due to a lack of major sports venues for (25 matches). national events. 600 528 543 494 Below, you can find spectator 500 411 In the Brazilian Série A “Brasileirão” attendance averages for the Brazilian 382 400 350 Championship, in addition to usual Série A Championship concerning the match and kick-off times, families 2015-2017 term. 300 180 152 164 200 107 129 134 100 Average Fan Attendance – Brazilian Série A Championship 0 2015 2016 2017

NORTH NORTHEAST CENTER-WEST SOUTHEAST SOUTH Source: CBF/Competitions Department 17.500 17,339 17.000 16.500 15,801 15,972 In regards to match distribution per county, Rio de Janeiro was the city that hosted most 16.000 matches, amounting to 126, followed by São Paulo, with 90, Curitiba, with 85, and Belo 15.500 Horizonte and Goiânia, tied with 75 each. On the other hand, São Paulo was the busiest city 15.000 in 2016, accounting for 85 matches. 2015 2016 2017

Source: CBF/Competitions Department

82 2017 MANAGEMENT REPORT 05. COMPETITIONS 83 Record Attendances

Série A MATCH DATE ATTENDANCE SÃO PAULO X CORINTHIANS 24 Sep 61,142 5.1 PROJECTS There is no doubt whatsoever that the SÃO PAULO X BAHIA 03 Dec 60,485 Brazilian Série A Championship is the SÃO PAULO X CRUZEIRO 13 Aug 56,052 competition that brings together clubs SÃO PAULO X CORITIBA 03 Aug 53,635 The Competitions Department is consolidated within Brazilians’ daily with the largest fanbases in Brazil. This SÃO PAULO X GRÊMIO 24 Jul 51,511 evidently showcases fans’ enormous known for its daily and intense routine lives, engrained inside fans’ minds GRÊMIO X CORINTHIANS 25 Jun 50,116 interest in matches, which is further of processing information, carrying out and already have their own ‘clients’. supported by figures: the 10 biggest CORINTHIANS X PALMEIRAS 05 Nov 46,090 evaluations and engaging with clubs, Thus, the department decided to focus matches in regards to attendances CORINTHIANS X ATLÉTICO MG 26 Nov 46,030 federations and the Superior Court of on finer details, adding value through exceeded 44,000 spectators, as shown in CORINTHIANS X FLUMINENSE 15 Nov 45,775 Sports Justice (STJD). Nevertheless, an efficient competition-related the table at the right-hand side. CORINTHIANS X FLAMENGO 30 Jul 44,682 the projects department is where it management. This takes place through is able to render possible the best specific projects that address issues Source: CBF/Competitions Department conditions for competitions with the such as marketing, press, pitches etc. greatest added value, visibility for clubs with a very basic goal: to take fans to and enhanced efficiency in executing stadiums, bring a higher perceived MATCH DATE ATTENDANCE Série B and delivering each competition. When value to competitions (products), and CEARÁ X ABC 25 Nov 56,005 looking at professional football, there translate this into enhanced revenues The following were the matches with CEARÁ X PAYSANDU 14 Nov 44,172 are two key issues: the ability to add for participating clubs, whether record attendances in the Brazilian Série CEARÁ X LONDRINA 02 Jun 40,280 value and feasibility of competitions. directly or indirectly. Hereinafter, we B Championship: PARANÁ X INTERNACIONAL 03 Oct 39,414 In brief, it is well known that will provide some examples of these CEARÁ X FIGUEIRENSE 20 Oct 37,347 professional competitions are already kinds of projects: PARANÁ X BOA 25 Nov 36,791 CEARÁ X PARANÁ 17 Oct 35,992 INTERNACIONAL X PAYSANDU 25 Aug 33,193 INTERNACIONAL X CEARÁ 28 Oct 32,977 INTERNACIONAL X GOIÁS 01 Aug 32,808 Project Protocol

Source: CBF/Competitions Department

Among Tournaments 5,957 15,972 Kicking off in the second semester of still in development, the first stage 2014, this project was key in bringing of the completed project concerned Among all promoted tournaments, it is BRAZILIAN SÉRIE A CHAMPIONSHIP together and managing personnel managing press organizations that worth noting those that attained record that has access to venue pitches in the have access to pitches and teams stadium attendances. Thus, we disclose BRAZIL CUP three main Brazilian Championship and entering the pitch. at the right-hand side figures evincing Brazil Cup divisions. Though currently BRAZILIAN SÉRIE B interest in the country’s top competitions: CHAMPIONSHIP 10,553

Source: CBF/Competitions Department

84 2017 MANAGEMENT REPORT 05. COMPETITIONS 85 Press Events

Radio stations and television networks premises. Together with press now have clear guidelines on numbers, management aimed at adding value Opening Show where they can carry out their through new standards, new marketing activities, procedures and conduct measures were also introduced Brazilian Championship / Série A allowed, information which is included at pitches, such as gates, totems, in each competition’s regulations. This picture boards and entrance tunnels. results in a nationwide standard for Said features are made available to This season poses the definite The opening protocol featured procedures and activities surrounding Brazilian Série A Championship clubs establishment of this event which has choreographed dancing, a large-size the pitch and order around these free of cost. become part of the calendar and signals flag bearing the tournament’s official the beginning of the country’s biggest trademark and a show by Brazilian and most important tournament. In DJ Alok, a rising star in the world of 2017, Allianz Parque Stadium in São international electronic music who Paulo hosted the tournament’s opening reached Spotify Brazil’s top songs. The ceremony and first match between author of the hit track “Hear me now” Palmeiras and Vasco. entertained the audience before the match kick-off. This is a result of efforts carried out in conjunction between the Competitions Before that, nonetheless, an orchestra PRESS – BEFORE PRESS – AFTERWARDS and Marketing Departments which, in performed the national anthem. Finally, addition to developing both concept and attending spectators were able to see format, also worked together to enable and admire the object that every club supporters to enjoy an entertainment fan desires. It most definitely could not experience that far exceeded the be kept out of the show: the beautiful sporting realm. and majestic trophy of the 2017 Brazilian Championship.

TUNNEL GATE

Teams

Another new standard introduced as a precise timing system until match relates to teams’ entering pitches. kick-off, CBF established a procedure Aimed at setting forth a nationwide and added value in introducing a theme standard for this procedure, which is competition song and a standard each match’s main ceremony as well countdown.

86 2017 MANAGEMENT REPORT Closing Ceremony Overseas expansion

Each year, closing ceremonies of the which hold image rights to the event Looking ahead, the Competitions established for the Série A, and taking Brazilian Championship are highly (SporTV and Rede Globo) and had a lot Department also carries out activities into special consideration international sought after events which draw a lot of of repercussion in social media and aimed at making competitions markets and regions that can be attention from the press. Held at the CBF media in general. All these efforts aim to increasingly globalized. The first stage marketed outside Brazil. Additionally, headquarters, last year’s event featured market and enhance the greatness of the in this respect came about following the department began efforts for the top-level anchormen from broadcasters Brazilian Championship. the definition of new match kick-off 2019 Brazilian Championship, at which times for Brazilian Championship time clubs will regain international matches. Sunday mornings at 11 marketing rights. CBF will lead them a.m., Saturday afternoons at 4 p.m. in this new realm, since it already has and Monday evenings at 8 p.m. were the know-how and skills to do so. Pitch Project three new kick-off times recently

Starting in 2015 thanks to the 2014 World already achieved significant results due Cup Legacy funds and having become a to better quality pitches and enhanced TV program that is fully funded by CBF, the viewing by spectators. “Pitch Project” (“Projeto Gramados”) had Video Assistant Referee (VAR) the initial aim of setting standards for Brazilian Séries A and B Championship pitch dimensions. Consequently, pitch sizes were set at 105m x 68m, in addition Regardless of its enormous interest in Brazil Cup, thereby further showing to other related measures: the pitch making this a successful enterprise, the wide range of attributions and halfway circle, box, penalty spot etc. the Competitions Department opened responsibilities that are bestowed a bidding process so as to enable Video upon it. PENALTY AREA AND BOX HALFWAY CIRCLE

In 2017, in turn, the project included R 0,15 m Assistant Referees (VARs) at the 2018 Série C and also began measuring 18,32 m

lighting and quality of pitches used in the 0,12 m max. 5,5 m three national divisions. These diagnosis 11 m CORNER KICK AREA OPTIONAL MARK 7,32 m 40,32 m were made available free of cost to R 9,15 m 1,5 m min. 9,15 m 0,15 m 7,5 m 5,5 m those in charge of stadia, irrespective of R 1 m

16,5 m being clubs, governments or companies. 0,12 m max. 0,05 m The goal is to enable CBF to monitor them more closely as well as attaining Additional official football pitch measures - increasingly higher standards. We have Source: CBF/Competitions Department

88 2017 MANAGEMENT REPORT 05. COMPETITIONS 89 6 REFEREEING 6 REFEREEING

This chapter discusses the main were undertaken aimed at enabling Within its scheduled planning, the VAR An additional live VAR test was achievements pertaining not only to conditions to constantly improve system was introduced in Brazil for the undertaken at a match between clubs the country’s refereeing framework referees comprising the ‘National first time in the final matches of the Brasilis and Taquatiringa for the 10th throughout 2017, but also the most Football Referee Draft’ (‘Seleção Pernambuco State Championship, a round of the 2nd Division of the U-20 significant figures that evince its Nacional de Árbitros de Futebol’ tournament organized by that State’s São Paulo State Championship. This was impressive range of activities in -SENAF), in addition to members Federation and featuring technology part of a CBF-organized VAR Training tournaments organized by the of federation frameworks. Specific developed by CBF and refereeing Program that featured 64 VAR officials Brazilian Football Confederation. figures related to said events are duly officials from its refereeing framework. and 16 VAR supervisors. According to registered at CBF and are available to Its debut took place at the first leg of Manoel Serapião Filho, the CBF VAR Thus, the Refereeing Commission the general public. the finals between clubs Sport and creator and instructor, and representative (CA-CBF) took on a decisive role in Salgueiro on 07 May, and was employed at The IFAB for issues related to the the season and engaged intensely Another important achievement again on the second leg in Salgueiro on matter, in addition to being in charge of in 16 tournaments coordinated made by CBF through its Refereeing 28 June 2017. the Technical Refereeing Pillar of the by the organization (more on Department concerns the Video National Refereeing School (ENAF-CBF), these can be found in this report’s Assistant Referee (VAR) project whose Use of VAR technology is restricted “Competitions” chapter). Some use was requested by CBF and duly to four specific and clear match “the entire aforementioned of the main activities related to approved, in an unprecedented way, by situations: congresses, symposiums, lectures, The International Football Association training program and video conference calls, workshops, Board (The IFAB) – body in charge of experience was extremely programs, training sessions, feedback establishing and updating football given to referees after matches rules worldwide. This took place A - Goals (awarded and not awarded) beneficial and has already and publishing of controversial alongside five (05) other countries. The A - Penalties (awarded and not enabled CBF to use VAR in refereeing decisions in Brazilian project is led by Sérgio Corrêa da Silva, awarded) Séries A, B and C Championship and project leader for Brazil and head of its competitions, although Brazil Cup matches. These efforts the CBF Refereeing Department. C - Red Cards – RC (awarded or not awarded directly); excellence, as happens with

D - Player mistakenly punished with any other activity, will only be cards (yellow or red). reached after further maturing of the VAR process”.

92 2017 MANAGEMENT REPORT 06. REFEREEING 93 National Football Referee Draft

In light of referee and assistant rank SENAF referees, taking into performances and, moreover, new account criteria set forth by the officials promoted to the refereeing Refereeing Commission aimed at framework, the ‘National Football restricting numbers of referees and Referee Draft’ (‘Seleção Nacional de assistants for specific competitions. Árbitros’ – SENAF) is updated and Thus, please see below a breakdown renovated each year. In 2017, a new of these categories and an explanatory category division was introduced to overview on each one of them:

FIFA – Comprised of referees and assistant referees suited to officiate international competitions and CBF-organized competitions.

MASTER - Comprised of referees and assistants who, for whatever reason, no longer comprise the international roster, provided this is not due to ethical violations, and of those “We carried out several After its initial tests, however, the who have been SENAF members for over ten consecutive years and who have officiated Refereeing Commission decided to matches in CBF’s main professional football category, and which should account for at tests at youth rank matches assess it more comprehensively, least 100 (one hundred) matches as main referees and over 150 (one hundred and fifty) as examining infrastructure requirements assistant referees. and the two final matches of and related costs before actually the 2017 Pernambuco State introducing VAR at the country’s A-B - Comprised of at least 50 (fifty) referees and 70 (seventy) assistant referees suited to main competitions. Initial predictions officiate matches in every CBF-organized competition, particularly in its Séries A and B. Championship. We are heading were met and the technology was into the sixth class, accounting introduced at the 2018 Brazil Cup C-D - Comprised of at least 120 (one hundred and twenty) referees and 150 (one hundred quarter-finals, comprehending 14 and fifty) assistant referees suited to officiate matches in CBF-organized competitions, for 64 referees trained by CBF, competition matches. In the Brazilian particularly in Séries C and D, and pursuant to outstanding technical performances, fit to 8 by FIFA/CONMEBOL and 19 Championship, use of VAR should officiate Série B matches. only begin effective 2019, though it supervisors. Having CBF’s full depends upon consent given by clubs INTERMEDIATE - Comprised of at least 50 (fifty) referees and 50 (fifty) assistant referees support, we will achieve our comprising the concerning Technical suited to officiate CBF-organized competitions, particularly in non-professional competitions, Board. and pursuant to outstanding technical performances, fit to officiate Série D matches. mission”. – added the VAR project leader Sérgio Corrêa da Silva.

94 2017 MANAGEMENT REPORT 06. REFEREEING 95 Since 2017, Master and A/B category Federations may only appoint referees Average Number of Fouls referees are allowed to officiate until up to 35 years of age. We note that they turn 50, provided they fulfill 542 officials, 224 referees and 318 Fouls Awarded Brazilian Série A Championship every requirement. On the other assistant referees, both male and 2015 – 2016 – 2017 hand, C/D category referees must be female, comprised Brazilian refereeing promoted to a higher category before frameworks and were at the disposal they turn 43, or else, they will no of national competitions, in addition to An important indicator that sparks 31 significant interest is the average number 30.45 longer comprise SENAF’s framework. international ones for FIFA referees. 30,5 30.17 of fouls, particularly since it impacts 30 the dynamic of matches while affecting, furthermore, another indicator we will 29,5 report on afterwards – the one relating 29 28.65 Below, you can find quantitative figures pertaining to both previous and current to ball in play time – which considerably 28,5 seasons for comparative purposes: impacts quality of matches. 28

In the Brazilian Série A Championship, 27,5 2017 MALE FEMALE 11,465 fouls were awarded in 2017, BADGE REFEREES ASSISTANT REFEREES REFEREES ASSISTANT REFEREES whereas 11,571 were awarded in the 2015 2016 2017 FIFA 10 10 4 3 previous year, signaling a 106 drop in fouls MASTER 7 5 1 1 in overall sums. Source: Refereeing Commission/CBF A-B 49 47 0 2 In examining the average number of fouls C-D 116 168 8 41 per match in the same competition and Looking at said indicator of the main INTERMEDIATE 28 28 1 13 term, we perceive a small decrease: 30.17 national tournament and comparing it with figures of major European leagues, the TOTAL (542) 210 258 14 60 against 30.45 in 2016. first division of the Brazilian Championship In this page, you will find a comparison falls short only 2 fouls behind other league Source: Refereeing Commission/CBF between the overall average of fouls averages, with an average number of 30.17 awarded in the last three years. fouls awarded.

20 20 8 56 12 99 39 96 Average Number of Fouls – Série A and Major European National Leagues – 2017 2016 12 2017 MALE MALE

35 30.17 184 27.56 28.21 29.32 28.44 30 25.66 23.28 103 284 25 FIFA 20 8 7 MASTER 14 14 2 15 3 2 ASPIRING 10 PLAYERS 11 FIFA 5 SPECIAL FEMALE FEMALE MASTER 0 CBF 1 AB 3 ENGLISH FRENCH GENERAL SPANISH GERMAN ITALIAN BRAZILIAN CBF 2 49 14 CD FIRST DIVISION FIRST DIVISION AVERAGE FIRST DIVISION FIRST DIVISION FIRST DIVISION CHAMPIONSHIP CBF 3 20 INTERMEDIATE Source: Refereeing Commission/CBF

96 2017 MANAGEMENT REPORT 06. REFEREEING 97 Ball in Play Time Cards Awarded

Another key indicator that says a lot division accounted for 52 matches whose It is safe to say that a statistic that looking into these numbers, we found about quality of matches is the “ball in ball in play time was equal to or exceeded denotes part of referees’ level of that the number of yellow and red play time” or playing time. In comparing 60 minutes. This number constitutes rigour in matches and, at the same cards awarded in the Brazilian Série A these figures with those of the previous approximately 14% of the total number time, the competitive level of matches Championship remained practically the two years, we find a small drop in of matches (380), whereas in the two themselves in a tournament is the same when compared to 2016. these numbers. According to the CBF seasons preceding it this statistic number of cards awarded. Thus, in Refereeing Commission, Brazil’s first reached 24% and 15%, respectively.

6 4.8 5 4.69 4.77

4

3

2 1 0.29 0.23 0.21 0

YELLOW RED YELLOW RED YELLOW RED CARDS CARDS CARDS CARDS CARDS CARDS 2015 2015 2016 2016 2017 2017

Source: Refereeing Commission/CBF

Whereas 1,811 yellow Total number of matches with over 60 minutes of ball in play time and 78 red cards were awarded in 2017, the

100 94 2015 previous year registered

80 2016 1,782 yellow and 58 52 60 2017 88 red cards. 40

20

0 Source: Refereeing Commission/CBF

98 2017 MANAGEMENT REPORT 06. REFEREEING 99 Comparative Analysis – Cards per Championship Refereeing Ombudsman

Additionally, we carried out an in the same way. In this particular The Ombudsman hotline is another part of the Brazilian refereeing framework. It is a body individual comparative analysis evaluation, we find that the Brazilian whose duties include receiving, assessing and answering complaints made by clubs and whereby we only compared average is practically the same as related suggestions concerning Brazilian refereeing. yellow cards of the main national the general average of every other championship, série A, with related tournament examined. Hereinafter, you will find objective figures providing an overview on the work carried out by figures pertaining to the world’s said department throughout 2017. The Ombudsman hotline received and followed up on 54 main championships or leagues. Results are shown in the graphs calls relating to 1,689 matches, thereby representing 3% of the total number – amounting Furthermore, we examined red cards below. to approximately 1 call per 31 matches.

Yellow Cards – main international leagues/2017 Incident overview/2017 – Refereeing Ombudsman Hotline

6 5.03 COMPETITION MATCHES COMPLAINTS 5 4.22 4.77 4.41 3.8 SERIE A 380 19 4 3.45 3.78 SERIE B 380 25 3 SERIE C 194 01 2 SERIE D 266 01 1 BRAZIL CUP 120 04 0 NORTHEAST CUP 74 02 OTHER COMPETITIONS 275 02 ENGLAND FRANCE GERMANY GENERAL BRAZIL ITALY SPAIN AVERAGE TOTAIS 1,689 54

Red Cards – main international leagues/2017 Source: Refereeing Commission/CBF

0.3 0.25 0.25 0.25 0.25 0.22 0.22 0.21 0.2 Number of Correct Decisions – Main Criteria 0.15 0.11

0.1

0.05 Based upon work carried out with the Brazil National Team since 2016, the Refereeing 0 Commission-CBF introduced performance evaluations throughout the previous season, thereby enabling it to undertake even more comprehensive assessments on its referees’ GERMANY ENGLAND GENERAL BRAZIL ITALY SPAIN FRANCE performances. The Radar System, which we will discuss in depth herein, enabled it to compile AVERAGE and organize more data that helped to enhance the quality of its refereeing.

Source: Refereeing Commission/CBF

100 2017 MANAGEMENT REPORT 06. REFEREEING 101 Offences (fouls) Training OFFENCES (FOULS) AWARDED NOT AWARDED CORRECT DECISIONS PERCENTAGE OF CORRECT DECISIONS 2017 11,465 249 11,446 97.8%

As we described at the beginning of this chapter, each year officials undergo physical and theoretical evaluations that enable them to comprise SENAF’s refereeing framework, and from there on they become empowered to officiate matches, pursuant to their Yellow Cards development.

YELLOW CARDS AWARDED NOT AWARDED CORRECT DECISIONS PERCENTAGE OF CORRECT DECISIONS In regards to physical evaluations, 617 referees and assistant referees were assessed 2017 1,811 99 1,795 94.8% during the season, whose results signal a 91% success rate. Referees’ physical fitness is deemed key in enhancing their ability to make correct decisions in a match, since it enables them to be better positioned on the pitch, something deemed critical for proper enforcement of the rules.

Red Cards

RED CARDS AWARDED NOT AWARDED CORRECT DECISIONS PERCENTAGE OF CORRECT DECISIONS SENAF EVALUATION TYPE OF EVALUATION 2017 78 19 77 80.2% YEAR PHYSICAL THEORETICAL 2015 545 628 2016 509 653 2017 617 717 TOTAL 1,671 1,998 We conclude our evaluation submitting offside offence statistics:

OFFSIDES AWARDED ANALYZED CORRECT DECISIONS PERCENTAGE OF CORRECT DECISIONS Source: Refereeing Commission/CBF 2016 1,435 1,213 1,030 84.9% 2017 1,203 1,203 1,123 93.3% In regards to theoretical evaluations, 717 referees and assistant referees were assessed, with a 78.5% approval rate. The Refereeing Commission-CBF aims at bettering both Source: Refereeing Commission/CBF types of aforementioned evaluations based on the belief that bringing together good physical and technical features enhances officials’ successful performances in matches they are officiating. Note: All information relating to referee mistakes/correct decisions can be verified and corroborated at the related video clip analysis.

102 2017 MANAGEMENT REPORT 06. REFEREEING 103 Highlights – Female Referees

We also disclose herein female 2016 season. In the 2018 season, FIFA In the last two rounds of the 2018 World Cup South American Qualifiers, eight Brazilian official statistics pertaining to the instructor Ana Paula da Silva Oliveira referees were appointed to officiate key matches. This is also a result of efforts carried out 2017 season. The continuous increase will be in charge of managing the under the psychological pillar department. evidences womens’ rising participation development of female refereeing in – a 39% growth when compared to the Brazil. At the opening ceremony of the ‘IV Women’s RAP-FIFA Program’ (‘IV Curso RAP-FIFA Feminino’) held in the city of Águas de Lindóia in São Paulo State, Peruvian FIFA technical instructor Ana Perez praised efforts undertaken in this field:

FEMALE REFEREES YEAR REFEREES ASSISTANT REFEREES TOTAL “I have to congratulate requires this. And lastly, the 2015 29 285 314 the Brazilian refereeing psychological side. There are 2016 82 373 455 2017 249 386 635 commission, because for situations in a match where TOTAL 360 1,044 1,404 several years now they the referee has to learn to have been concerned deal with and overcome a Source: Refereeing Commission/CBF with referees’ full-time mistake and not let it get to development as people. his head. There is enormous Firstly, they develop the pressure within a match technical side to meet setting. And a psychologist the rules of the game. is necessary for referees to Thereafter, they work on the be able to face these kinds Psychological Pillar physical side, since this job of situations”.

Since more than a decade, CBF’s model in the continent, a landmark Refereeing Commission has offered position Brazilian refereeing has been a psychologist to support referees taking on after enabling a professional Evaluations carried out in each category are supported by psychologist Marta Magalhães. (pursuant to a story published at CBF’s to deal with its referees and assistant Efforts began in 2004 at the São Paulo State Referee Sindicate. In the following years, the homepage). This work has become a referees’ psychological issues. work was implemented at CBF where, effective 2007 and thereafter, the organization took on and proceeded with the work. After CBF took on this role, another 15 Brazilian state federations followed suit and introduced their own psychologists to support referees.

104 2017 MANAGEMENT REPORT 06. REFEREEING 105 Specific psychometric evaluations, such as D2, concentrated, divided and alternating attention, personality tests and biofeedback, among others, are also used. Moreover, referees will undergo the Five Digit Test, among others, that additionally enable picking officials to perform as Video Assistant Referees (VARs). The purpose of this activity is to describe speed and efficiency related to cognitive processing, continuation of focused attention, progressive automatization of duties and capability of engaging in additional psychological efforts CBF’s refereeing psychology work whenever referees face increasingly challenging situations that require a higher level of began with the idea and establishment “Sports disciplines featuring concentration. Furthermore, the department expects to invest in neurofeedback shortly. of four pillars: sports psychologists • Physical - efforts began aimed at working together with their changing cognitive mindsets, which coaching staff have displayed required a different methodology and enhanced training. Psychological efforts successful results. This team ENAF Activities were introduced to help with both psychological and physical attributions. work and the way the pillars intertwine brings about Pursuant to other Brazilian refereeing bodies, The National Refereeing School (ENAF) • Technical - this pillar came about planned and developed a busy season filled with activities aimed at training and to support efforts in preparing for this success. Introducing enhancing officials. matches. The supervision work was psychological pillars and carried out alongside referee profile In all, it executed 244 activities throughout the year, which are split into the following mapping in regards to their attention and sports psychologists in specific categories: concentration levels. sports disciplines is a matter • Psychological - at the same time, of time, a requirement. Due psychological preparatory efforts were introduced for technical, physical and to football players’ swift • Training programs for overseas • Training programs for video analysts; officials (Paraguay and Peru); social criteria. • Special training programs for FIFA reactions nowadays, we • State pre-season training sessions; referees; • Social - the social pillar introduced have a shortage of enhanced • SENAF qualifying assessments and • Training programs for SENAF attention to ethical issues and aims at reassessments; officials; bringing together referees as well. At the psychological preparation”. • Updating physical evaluations; • Brazilian refereeing renewal project end of each training program, referees – states Marta Magalhães. • Representations (lectures, (officials up to 30 years of age); are able to express their feelings and congresses etc); • FIFA training programs for elite and reality perceptions relating to their lives promising referees, as well as technical and attributions they carry out. • Training programs for SENAF and physical instructors and female referees; referees; • Meetings with sports psychology • Technical visit by the President of the professionals; Refereeing Commission-CBF to State • Training programs aimed at Commissions; discussing the new referee assessment • Video Assistant Referee (VAR) project Additionally, the CBF Refereeing Commission develops psychological rehabilitation efforts methodology; activities. for injured referees consisting of psychological supervision until they are fully fit to officiate matches again. Those who live far away and, consequently, are unable to meet in person with Dr. Marta Magalhães, be it at her office or at training programs, are able to talk through video conference calls. All efforts described herein help give an idea of the approximate workload that the Refereeing Department undertakes to enhance quality of refereeing in matches, applying rules and making matches increasingly fairer.

106 2017 MANAGEMENT REPORT 06. REFEREEING 107 6.1 PROJECTS

Radar System

Aimed at assessing, improving and setting standards for Brazilian refereeing at Brazilian Série A Championship matches, the Refereeing Commission-CBF introduced a landmark project in the football world this season: the RADAR system, whose letters mean, in Portuguese, Refereeing Performance Analysis Report .

Top three-ranked referees are honored at the 2017 ‘Brasileirão’ awards.

Throughout the competition, the system in matches, such as offences, offsides The aforementioned efforts enabled rankings of the best referees, assistants and other assessed every referee and assistant’s and cards awarded. Moreover, specific officials comprising match official teams throughout the season. The best ones were performance in an increasingly behavioral and match issues were also honored at the Brazilian Série A Championship awards ceremony, an event that has scientific, as opposed to subjective, addressed. In bringing together theory become a staple of Brazilian football calendar’s closure activities and takes place at the manner. This method was introduced and statistics on mistakes and correct CBF headquarters. with the purpose of better fulfilling decisions, the RADAR System is able to referees’ realities while, at the same measure the entire technical side related Finally, we disclose below figures pertaining to the objective results of the supervision time, not ignoring pitch issues, and to refereeing. and assessment efforts carried out by the Refereeing Commission-CBF. Thus, you will precisely reporting on each referee find below a table disclosing referees who displayed the best performances throughout decision made during the match. From thereafter, the Refereeing the season: Featuring technology developed within Commission-CBF compares CBF, the system is responsible for assessments and, together with ENAF, issuing scores – through a rigorous and draws up a third report to reach the automatic procedure – as opposed to final score for each referee or assistant. TOP 2017 ‘BRASILEIRÃO’ REFEREES NUMBER OF PARTICIPATIONS POSITION IN ROUND RANKINGS analysts doing so. In regards to the first top ten-ranked Referee: RAPHAEL CLAUS 18 matches Placed 10 times among the top three-rankedreferees referees, the following criteria Referee: GUILHERME DIAS CAMILO 19 matches Placed 7 times among the top three-ranked referees Referees were assessed by pitch and was also taken into consideration: Referee: BRUNO RAPHAEL PIRES 21 matches Placed 10 times among the top three-ranked referees video analysts trained to use the tool number of matches, average number after participating in a program offered by of referees at each referee shift, Source: Refereeing Commission/CBF CBF and the National Refereeing School matches with interference, number of (ENAF) in the beginning of the year. The times referees placed at the top three system foresees specific referee duties ranking of each round.

108 2017 MANAGEMENT REPORT 06. REFEREEING 109 7 MARKETING AND COMMUNICATIONS MARKETING AND COMMUNICATIONS 7 MARKETING AND COMMUNICATIONS

This part of the report attempts Thus, marketing plays a key role to fully explain all roles and in understanding the needs of accomplishments achieved by two each specific set of consumers, 7.1 MARKETING extremely important departments whether comprised of fans and for CBF’s operations: Marketing and Brazil National Team admirers or Communications. They work closely persons interested in one of the together with the aim of supporting several tournaments CBF organizes During the 2017 season, the Throughout the season, enterprises operations of a sports organization each year. And based on this department introduced key projects conceived and undertaken were aimed the size of the Brazilian Football understanding, it proceeds to plan, and activities aimed not only at at contributing to and bolstering an Confederation, an organization with schedule and carry out activities it developing the sport and its entire encouraging current sports scenario: international reach, and featuring two deems most appropriate to address chain of value, but additionally and well-defined guidelines: to provide full each group’s wishes. particularly to target brands that support to national teams and foster support and relate to football and • 360º CBF Sponsor Program; Brazilian football within all of its The Communications Department is have been important in helping to • ‘Fans and National Team. Giants by divisions, though focusing its efforts in in charge of promoting exchanges continuously boost the sport. Nature’ Campaign; planning and executing the country’s between CBF and its target audience. • Brazil National Team official football championships under its wide Therefore, it seeks to report With the end of the Olympics and products Licensing Program; range of ranks. institutional guidelines and translate Brazil’s unprecedented gold medal, • ‘Canarinho’ Mascot; them into a simple and direct manner efforts became targeted towards the • “We are Football” – Football The main goals of the Marketing to stakeholders, in addition to main national team and its campaign Evolution Week; Department include bringing fans promoting information transparency in the South American Qualifiers for • e-Brasileirão marketing closer to the Brazil National Team, concerning said parties. Likewise, the World Cup in Russia. The coaching adding value to the CBF brand, it plays a key role in upholding staff undertook vital efforts towards making its products increasingly strategic data and monitoring achieving this goal, however, it was Through more in-depth figures we will globalized and enhancing the sensitive information that can duly supported by important marketing disclose herein, one can verify how football market, particularly in possibly damage the organization’s tools, such as advertising actions on each one was a key issue in generally regards to clubs and federations. reputation. match days that helped engage local improving the image of the organization, spectators in cities where the squad both institutionally as well as in regards to played its matches. its products, thereby majorly contributing to enhancing the appeal of associated brands.

112 2017 MANAGEMENT REPORT 07. MARKETING AND COMMUNICATIONS 113 7.2 360º CBF SPONSOR PROGRAM

Relationships with its sponsors constitutes one of CBF Marketing Department’s main activities. Aimed at offering them the best possible treatment, the department undertakes several enterprises throughout the year which enable partners to meet their goals and overcome all expectations they hold in regards to sponsoring the team.

In regards to handling client accounts, Furthermore, several other actions tailored plans are conceived taking into carried out throughout the year account specific needs of each sponsor. enabled sponsors to have unique Said plans entail following-up on and experiences, such as being able to carrying out monthly reviews, in addition sit on substitute benches at national to focusing efforts on attaining financial team training sessions, take pictures returns on the investment, which is and receive autographs from stars, measured through key assessment travel in the delegation bus, among sources (IBOPE Repucom Brazilian other benefits. In 2017, the program 7.2.1 SPONSOR MEETINGS government agencies) and take into reached: account recommendations for actions seeking to improve performances. • Over 10,000 guests who were able Moreover, the program encompasses to attend World Cup Qualifiers and An instrumental part of customer happened in previous years, also the following: friendly matches; relations concerns the annual meeting disclosed updates on the Governance, held with sponsors. This measure also Risks and Compliance Project (GRC) • Sponsorlink research studies to • More than 350 guests who watched addresses one of the key cornerstones which is spearheaded by consultancy measure sponsor brand recalls and for the main Brazil National Team training of CBF’s current management which firm Ernst & Young. Thus, this mapping out National Team fan profiles; sessions; is transparency. The event consists of enables companies to have a direct a meeting between the CBF Board of communications channel with CBF • Internal introduction of a specific unit • Over 40 customer relations events Directors and its sponsors, and has in which they can clarify doubts and aimed at managing agreements, thereby with sponsors at national team training the purpose of not only updating them questions they may have, in addition enhancing the control over agreement sessions and matches. on enterprises undertaken by the to enabling a closer relationship and deliveries and results from each partner. organization, but additionally to disclose being ensured that their brands are short, medium and long-term plans associated with a sound organization pertaining to every CBF department. that is committed to significant enterprises not only related to The 2017 meeting was the third edition football, but also aimed at their own of the event, and following what markets.

114 2017 MANAGEMENT REPORT 07. MARKETING AND COMMUNICATIONS 115 7.2.2 SPONSOR MATCH 7.2.3 PARTNERSHIP GROWTH (FIGURES)

Entailing a different kind of proposal a barbecue. In 2017, the event had its In regards to increases in the numbers increased its number of partners to set within a more laidback and casual third and fourth editions and featured of agreements signed with companies 19 in 2017 as opposed to 18 in the setting, sponsor representatives participations from former Brazil that supported CBF in fulfilling its previous year. were invited to stay a weekend at the National Team players, sponsoring institutional duties, the organization Granja Comary. In the event, guests brand officers, TV stars and the remains steadfast in its path towards The graph below shows increases in were lodged at players’ quarters, coaching staff of the current main reaching its previously defined goals recent financial contributions made by played a friendly match and enjoyed team. and purposes, for which reason it sponsors and supporters.

Sponsorships – Sums in Reais AT THE EVENT R$ 353,378,926 R$ 339,604,000 2015 > Former National Team players > Sponsoring brand officers 2016 > TV stars 2017 > Coaching staff R$ 410,988,000

Source: Marketing Department/CBF 7.2.4 CURRENT FRAMEWORK

Fully aware that CBF devised and has 1 NIKE (NATIONAL TEAM SPONSOR) been introducing structured plans aimed at developing football and 2 GUARANÁ ANTARCTICA (NATIONAL TEAM SPONSOR) the national teams, sponsors have followed suit and kept their efforts 3 ITAÚ (NATIONAL TEAM SPONSOR) steady in regards to fostering Brazilian football. 4 VIVO (NATIONAL TEAM SPONSOR)

Moreover, after examining national 5 MASTERCARD (NATIONAL TEAM SPONSOR) team results, we can confidently say that there is an undeniable progress 6 GOL LINHAS AÉREAS (NATIONAL TEAM SPONSOR) made, with special highlights including securing a place at the 2018 World Cup 7 CIMED (NATIONAL TEAM SPONSOR) in Russia four rounds ahead of time. Likewise, youth rank and women’s 8 EF ENGLISH LIVE (NATIONAL TEAM SPONSOR) teams also lifted important trophies, information you can find in-depth at 9 ULTRAFARMA (NATIONAL TEAM SPONSOR) the “National Teams” chapter. 10 UNIVERSIDADE BRASIL (NATIONAL TEAM SPONSOR) Looking at another organizational product, which is the promotion of 11 CATAPULT (NATIONAL TEAM SUPPORTER) regional and national championships, we must point out the increase in 12 CAFÉ 3 CORAÇÕES (NATIONAL TEAM SUPPORTER) numbers of said tournaments is only feasible due to increments 13 TECHNOGYM (NATIONAL TEAM SUPPORTER) in contributions made by the organization’s partners. In comparison 14 TCL (REFEREEING) with the previous year, 3 additional tournaments took place, as can be 15 SKY (REFEREEING) seen in the “Competitions” chapter. Consequently, a wider range of clubs 16 TOPPER (REFEREEING) were potentially benefitted with additional revenues or, furthermore, 17 PEPSI (E-‘BRASILEIRÃO’) with the chance to further develop their teams, particularly their youth 18 BRAHMA (E-‘BRASILEIRÃO’) rank squads. 19 PES2018 (E-‘BRASILEIRÃO’)

118 2017 MANAGEMENT REPORT 07. MARKETING AND COMMUNICATIONS 119 7.3 PROJECTS

This chapter section has the aim of further underlining and detailing projects that had significant goals and results for the organization throughout the season. Below, you will find some of these main enterprises:

7.3.1 ‘GIANTS BY NATURE’ CAMPAIGN

The abovetitled advertising campaign was the first of its kind that the organization undertook for a World Cup. Launched exactly one year before the competition, it was conceived with the main goal of placing Brazil National Team fans as the main character in the squad’s quest for its sixth cup: ‘Fans and National Team. Giants by Nature’.

This advertising campaign received critical acclaim and won the LIDE Business Marketing award in 2017 under the best sports marketing campaign category.

Another remarkable moment in the campaign was an acknowledgment videoclip called ‘Gratitude’, in which National Team players showed their appreciation for fans’ support throughout the World Cup Qualifiers. The clip was launched exclusively in TV Globo and SporTV channels, though it also ran extensively in other TV networks and digital channels.

120 2017 MANAGEMENT REPORT 07. MARKETING AND COMMUNICATIONS 121 7.3.2 THE ‘CANARINHO’ MASCOT 7.3.3 NATIONAL TEAM OFFICIAL PRODUCTS LICENSING PROGRAM This key enterprise was conceived with • A major hit with fans in social media, the aim of embodying the allure and particularly young supporters; excitement associated with the national This program kicked-off a structured • Over 160 licensed products; team, in addition to its strength and • Live appearances in TV shows like SporTV channel’s “Bem Amigos” and plan to market official products related sporting tradition. Having that in • 8 licensing agreements; to the Brazil National Team and its mind, and adopting the nickname fans YouTube’s “Desimpedidos”; mascot, the ‘Canarinho’. It is truly a • 23 commercial offers currently under have given the team long ago in its • Developing on-pitch activities with landmark enterprise aimed at bringing review; successful history, CBF attempted to the mascot in all national team matches fans closer to the national team, and bring back this feeling of empathy with • Expectation of 500 licensed products and training sessions both in Brazil and creates a new revenue source for both fans and, particularly, with children. until the 2018 World Cup; abroad; CBF and Brazilian football. Up until Activities undertaken accounted for now, it includes the following figures: • A specific line conceived for children significant results: • International expansion of the mascot and centered on the ‘Canarinho’ mascot, brand resulting from its appearances in in addition to other products targeted to • Developing a new character whose matches played overseas; all age groups. appearance conveys the Brazil National • Commercial marketing actions with Team’s fighting spirit; national team sponsors. 7.3.4 ‘WE ARE FOOTBALL’ – BRAZILIAN FOOTBALL EVOLUTION WEEK

For the second year running, CBF’s headquarters hosted the ‘We are Football’ – Brazilian Football Evolution Week event. Following what happened in its first edition, the purpose remained to focus on debating opportunities and potential options for further fostering Brazilian football’s development.

7.3.5 2017 E-BRASILEIRÃO MARKETING

The 2017 season also introduced the The 2016 edition Champion Guilherme second edition of the official virtual “GuiFera” Fonseca of Santos FC was football games tournament of the also the category’s world Champion. The event, which featured several *Some of the key speakers included Tite, Brazilian Football Confederation – the In 2017, the tournament was won by pannels and debating forums on current Fabio Capello (former AC Milan, Real e-Brasileirão tournament. Played in Cruzeiro Esporte Club representative and key issues relating to Brazilian Madrid, England and Russia National Team Konami’s “Pro Evoluton Soccer (PES)” Henrykinho of only 16 years of age, football, reached significant results: manager), Marcelo Bielsa (former Argentina and Chile National Team manager), Omar game platform, it brought together major who defeated the Atlético Clube Ongardo (FIFA Football Regulatory Director), Brazilian brands, in addition to enhancing Goianense player 4-0 (aggregate score • 28 lectures from distinguished Kimberly Morris (FIFA TMS Head of Integrity the general public’s interest in virtual of both final matches). speakers in their expert fields; and Compliance), Emily Shaw (FIFA Women’s football games. Some significant figures Head of Governance and Leadership), were achieved in this edition, such as: • Over 545,000 online content views; Catalina Navarro (UEFA Events Head of Commercial Operations), Damian Willoughby • 51% increase in enrolled players in • Considerable international (Senior Partnership VP at Manchester comparison with the previous year; repercussion resulting from stories City FC), David Dein (Former Arsenal VP and Premier League Cofounder), Richard published in media outlets of 9 Law (Head of Football at Arsenal FC), Tom • 3 sponsors – Pepsi, Brahma 0% and countries; Greenwood (Head of Partnerships and Konami; Activations at the Premier League), Arnon de • Intensive national repercussion Mello (Latin America VP at the NBA), Laura • TV viewer ratings exceeding 1 million following publication of 72 articles and Froelich (Global Head of Content and Sports spectators in the final match, which was 28 videos. Partnerships at Twitter) and Lorena Soto (Women’s Football Manager at Conmebol). broadcast by SporTV television network.

124 2017 MANAGEMENT REPORT 07. MARKETING AND COMMUNICATIONS 125 7.4 COMMUNICATIONS 7.4.2 SOCIAL MEDIA

This department carries out its efforts It therefore has an established Fully aware of the significance social main network in said index, accounting through its press office and always in operating procedure whereby its media plays in marketing strategies in for 65% of overall numbers. This can be accordance with institutional guidelines personnel carries out their efforts business nowadays, CBF develops and explained particularly due to the fact set forth by CBF’s Board of Directors. It according to clear and objective makes available comprehensive digital that CBF employed a strategy using undertakes its actions in a transparent purposes. content targeted to its supporters. Facebook as its platform to broadcast and rigorous manner that are in tune live matches of the Brazil National with communications departments of Communications advisors’ work Employing the combined index measure Team, which reached an average rating all major corporations. cover the following ranks of Brazilian to gauge numbers, which is an indicator of 303,297 spectators, in addition to National Teams: that encompasses every major social overall 31,323,022 interactions in the In general terms, it backs CBF officials media outlet, CBF managed to reach page. Furthermore, the ‘#Seleção in the challenging duty of conveying to • Main Brazil National Team; nearly 18 million and a half followers. Brasileira’ (‘Brazil National Team’) football fans and supporters of CBF- • Brazil Women’s National Team; This figure places CBF at the top spot hashtag was the most popular among organized competitions and, particularly, • Youth rank teams. among every other national team in the all hashtags created by the department, the Brazil National Team, the reliability world, according to IBOPE numbers. amounting to 686,759 publications. and certainty that decisions and other Moreover, the department has staff measures which impact Brazilian football that is specifically trained to cover Facebook repeated its previous year’s Please find below figures broken down are only taken after in-depth discussions actions and institutional issues, in performance and kept its place as the per platform: and assessments are made. These include addition to those in charge of updating participation of experts and, moreover, an and surveilling daily homepage content internationally renowned consultancy firm as well as the organization’s social in the current administration. In short, all media accounts. Their concerning measures are taken aimed at ensuring the contact information can be found at PER PLATFORM 2015 2016 2017 public that the organization is committed said channels. FACEBOOK (FANS) 8,942,115 11,846,880 11,992,013 to its mission, as already mentioned in this report. TWITTER (FOLLOWERS) 3,242,429 3,818,154 4,076,075

INSTAGRAM (FOLLOWERS) 960,000 1,534,880 2,057,910 7.4.1 NATIONAL TEAM NUMBERS YOUTUBE (INSCRIBED) 86,520 129,807 184,928 COMBINED INDEX 13,231,064 17,329,721 18,310,926

In this chapter section, we will disclose 2018 World Cup Qualifier match times, Source: Communications Department/CBF key figures that convey efforts not only it accounted for viewer ratings pertaining to the department at hand, but exceeding, in average, 50% of also to the organization as a whole and televison sets running in Brazil. Other key social media also registered significant increases: Twitter exceeded 4 million its collaborating staff. followers (1,374,364 interactions) and Instagram accounted for over 2 million followers In regards to fan and spectator (17,312,428 interactions). During the 2017 season, in accordance attendances, average stadium with IBOPE statistics, main national team attendances at national team In examining another important index, which concerns overall homepage visits to http:// matches registered an overall viewer matches accounted for 47,579 www.cbf.com.br, we find that these figures exceeded 30 million visits in 2017 and averaged rating of 114 million spectators. At spectators. 480 stories posted each month.

126 2017 MANAGEMENT REPORT 07. MARKETING AND COMMUNICATIONS 127 Growth in CBF homepage visit numbers

8,513,569

30,070,610 12,964,662 2017 2016

2015

2014 25,930,829

Source: Marketing Department/CBF

In order to enable a more comprehensive evaluation, we compared CBF’s numbers to those 7.4.3 LIVE BROADCASTS of other major sports confederations worldwide, figures you can see below.

In 2017, CBF’s Communications In addition to live match broadcasts in its Department carried through Brazil official Facebook page, CBF introduced National Team’s first match broadcasts an internal framework and carried in social media. The Friendship Match, out training aimed at enabling itself to a friendly played against Colombia undertake the entire operating procedure with full match proceedings donated entailing real-time match coverages, to Chapecoense, was the biggest ranging from footage recording and highlight. The match reached 29 million TV feed generations, to broadcasts people, including 6,3 million views and themselves. generated 1 million interactions (likes, comments and shares). In a completely unprecedented and landmark enterprise in the Source: IBOPE REPUCOM Confederation’s history, two Brazil 1 National Team friendly matches played in Australia were broadcast through MILLION 1st 3rd INTERACTIONS technology enabled by the IT and BRAZIL ENGLAND REACH 29 Communications Departments by means MILLION of streaming services and CBF TV’s own 2nd PEOPLE 6.3 channel. 18,310,926 MEXICO 12,354,371 MILLION • Brazil 0-1 Argentina (09 June) – 11,992,013 6,961,036 VIEWS 6 million views 4,076,075 3,109,225 2,057,910 18,310,423 1,888,996 • Australia 0-4 Brazil (13 June) – 184,928 395,114 Source: Communications Department/CBF 11,212,367 7 million views 5,567,964 1,488,687 Match broadcasts featured famous guest participations, such as sportscaster Nivaldo 32,405 Prieto and comments by former player Denílson, in addition to those made by the individual still deemed the best football player ever, Edson Arantes do Nascimento – superstar Pelé.

128 2017 MANAGEMENT REPORT 07. MARKETING AND COMMUNICATIONS 129 7.4.4 RADIO 7.4.5 PRESS OFFICE

On November 2017, the Communications One of Communication’s cornerstones including the Brazil National Team Department began distributing exclusive is engaging with press members. CBF itself. content to radio networks all over Brazil remains dedicated to providing all through the RadioWeb news agency. explanations deemed necessary to In 2017, it sent 10,012 press mailings. From 23 November to 31 December, both Brazilian and foreign Journalists In other words, 2,082 more than in the approximately 50 news bulletins with in regards to the wide host of matters previous year, resulting from 1,317,456 19,123 radio insertions were distributed related to the organization, evidently emails sent. to both AM and FM radio stations affiliated to the agency, thereby signaling an average of 318 radio stations per bulletin. Taking into consideration average durations of 1 minute and 40 seconds per radio story, this enterprise Comparative graph on press mailings sent resulted in an overall 478 hours of radio exposure on CBF-related issues.

10,012 7,930

Radio news coverage + 2017 comprising 50 stories reached 26% 2016 1,471 radio stations in 1,100 counties. Taking into account host city population figures, Source: Communications Department/CBF the coverage therefore reached In the nine matches the Brazil National Team played for the 2018 FIFA World Cup Qualifiers, the 107 million Brazilians. Communications Department registered 727 companies and issued 13,387 press credentials.

130 2017 MANAGEMENT REPORT 07. MARKETING AND COMMUNICATIONS 131 8 INNOVATIONS & TECHNOLOGY & TECHNOLOGY INNOVATIONS 8 INNOVATIONS & TECHNOLOGY 8.1 INTRANET

2017 signaled the official and definite of regulatory documents drawn up launching of the new internal interaction during the Governance, Risks and Portal among CBF departments. Compliance (GRC, in Portuguese) This enables the organization to now project. Disclosing information communicate with its collaborators in on internal procedures is of the an increasingly efficient manner that uttmost importance in enhancing the complies with the best management and organization’s Governance. governance practices. In addition to HR announcements Innovations should increasingly the organization’s constantly changing Introduction of the organization’s and news enclosed in communication pervade organizations in both needs. new Intranet allowed speeding up messages sent, the Intranet allows continuous and sustainable ways, communications procedures within collaborators to enclose documents, aimed at helping to achieve strategic Consequently, technology’s mission CBF and disclosing information to all medical reports and other useful employees in the same way. The aim documentation. goals. Much more than simply a role must go well beyond only offering daily of this enterprise is to enable each or specific department, innovations operational support, but additionally employee to be able to understand, Employees with authorized profiles should be an ongoing process seeking helping other departments achieve their give his or her opinion on and take part also have at their disposal a full to support all other departments within set out results with enhanced efficiency. of the organization’s management. collaborator directory featuring contact an organization. and department information detailed in In 2017, certain departments were It is worth noting that the Intranet a clear and organized manner. At CBF, the Information Technology particularly impacted, such as also renders possible publication Department operates to keep the Competitions, Refereeing and CBF organization up-to-date with the most Academy. The same year also introduced efficient and state-of-the-art solutions a new CBF Intranet, whose goal was to available in industry markets. Taking improve internal communications and into consideration the fact that CBF transparency procedures. operates within a highly specific industry, the technology department All efforts undertaken had the aim of is oftentimes additionally responsible improving football not only on the pitch, for developing innovations that meet but also outside of it.

134 2017 MANAGEMENT REPORT 08. INNOVATIONS AND TECHNOLOGY 135 8.2 CBF ACADEMY 8.3 REFEREE PORTAL

CBF’s technology department programs (a kind of football academic The new and updated Referee The electronic match report was developed a Portal specifically for record), CBF Academy personnel can Portal was created following CBF’s restructured taking into account the CBF Academy. This portal works as a issue invoices electronically within introduction of electronic match report main standards of use, safety and management platform for CBF, thereby CBF’s own system, which features forms in 2012. It features previous integration facility. Thus, after filling enabling it to manage the number of its own gateway structure connected year’s main technology upgrades and a it out and having the referee validate students enrolled and programs offered with the world’s main credit card new way of filling out already state-of- it, all those participating in the match as well as allowing for interactions institutions. the-art electronic match reports. electronically sign the report, which between students. can be published at CBF’s homepage The portal also features a full All data is validated in a step-by-step just minutes after matches are Additionally, the CBF Academy Portal e-learning platform that supports the process, beginning from referee drafts concluded. has a dedicated space for the general main types of media used for distance whose Pre-Drafting unit enables access public to enroll in available programs, learning. Students can send papers, to the Athlete Registration System, and These measures ensure safety and in addition to contacting and searching speak with teachers and follow-up thereafter including penalty offences, transparency to procedures regarding for information. Through the Portal, on their academic performance. which are included and automatically publication of electronic match CBF Academy’s staff is able to review Additionally, it has electronic program feed the Competitions System, as reports, in addition to speeding up and applications and engage electronically attendance forms and includes the well as markers and additional match guaranteeing that the information is with prospective students. option of sending program-related information such as delays or incidents trustworthy. teaching material to students. that need to be reviewed by the ‘Superior In addition to keeping and creating Court of Sports Justice’ (‘Superior full student educational records and Tribunal de Justiça Desportiva, STJD).

136 2017 MANAGEMENT REPORT 08. INNOVATIONS AND TECHNOLOGY 137 8.4 REFEREEING EVALUATION

Fully integrated with Competitions and Referee Portal systems and using a scientific methodology merged with data analysis software, the referee evaluation system seeks to validate referee and assistant performances in accordance with theoretical criteria taken into account that is the cornerstone of solid refereeing team performances.

Evaluations are carried out using referees to point out, among potential Furthermore, the refereeing evaluation system generates a database rendering possible electronic forms which are designed mistakes commented by the reviewer, referee rankings (the match team), thereby keeping an updated ranking in each round to allow both the reviewer as well their considerations or theoretical as well as a final ranking signaling the best referees in the year. Ranking algorithms as the Refereeing Commission to assessment using a standpoint other and scores can be customized, thereby enabling reviewers to make all necessary enclose and have access to each bit than the reviewer’s, thereby allowing a adjustments, and this data is collected either using the 360º evaluation or resulting from of information in a clear and objective continuous improvement of the entire scientific methodology improvements made to the software. way. The 360º evaluation model allows process.

138 2017 MANAGEMENT REPORT 08. INNOVATIONS AND TECHNOLOGY 139 9 SOCIAL AND ENVIRONMENTAL Throughout the season, CBF Social also At the same time, CBF Social launched two key projects aimed at carried on with activities that are SOCIAL AND developing football in Brazil. In Ribeirão already consolidated and became an 9 Pires in São Paulo State, it kicked off its overwhelming success at cities that ‘Brazil Goal Program’ (‘Programa Gol hosted them: the ‘National Team in ENVIRONMENTAL do Brasil’). It is a sports program aimed my City’ (‘Seleção na minha Cidade’). at empowering local teachers to teach Activities take place in towns where program classes, and whose main end the main national team has matches goal is to encourage young people to scheduled and kick-off the week before Pursuant to what we describe The famous football festival, CBF play sports. the match until it effectively takes place. throughout this report, the Brazilian Social’s main event since 2015, They range from training sessions to Football Confederation (CBF) has continued to visit several cities: Foz Furthermore, it introduced the ‘Future empowering local professionals, and spared no efforts towards reasserting do Iguaçu (PR), Rio de Janeiro (RJ), National Teams’ (‘Programa Seleções additionally, watching national team its statutory obligations during the Resende (RJ), Macapá (AP), Araraqara do Futuro’) Program in Belo Horizonte training sessions and donating match season and treading a path aimed (SP), Curitiba (PR), São Paulo (SP), in Minas Gerais State, which seeks tickets. In addition to promoting the city at increasingly creating virtuous Brasília (DF), Belém (PA), Fortaleza to foster the development of football itself, they seek to increasingly bring cycles. And it will go even beyond. (CE), Porto Velho (RO), Florianópolis among boys and girls aged 6 to 17, together the national team and its fans, In undertaking much more than (SC) and Porto Alegre (RS). Nearly taking into special consideration those particularly underpriviledged children enterprises and actions relating to 3,000 youngsters attended the who study in public schools. In both and people who would hardly have the football pitches or merely concerning events. Activities undertaken brought projects, the methodology applied was chance to see the squad from up close. competitition issues, the organization knowledge and teachings on football developed by CBF Social. has additionally legitimated its to children enrolled in these towns, institutional duties towards people in addition to conveying important and its target audience. It is safe to messages on issues related to say that CBF Social spearheaded the living in society and understanding organization’s social and environmental sportsmanship. actions and introduced its projects in an instrumental manner throughout 2017. In each city it visited, the festival invited institutions and organizations that also The projects team travelled the four work hard each year to improve lives of corners of Brazil to take football children and teenagers in need. Beach and solidarity to thousands of young Soccer was another football modality people. From Belém and Porto Alegre included in the festival. Featuring to Florianópolis and Porto Velho, special events, it was a gateway for wherever it went, CBF Social showed young people with Down Syndrome to once again that football can be much participate and interact with others, more than simply a sport. It can be exemplified during the friendly match used as a powerful ally in fighting played between Santos and Corinthians social inequalities and taking smiles in the beginning of the year. to people’s faces, as well as changing their lives.

142 2017 MANAGEMENT REPORT 9.1 BRAZIL GOAL PROGRAM

At the end of the year, CBF Social wrapped the opportunity to meet their idols and up its activities in stellar fashion following interacted with Daniel Alves, Neymar, the Brazil National Team training session Gabriel Jesus, Philippe Coutinho and the in Porto Alegre in Rio Grande do Sul entire ‘Canarinho’ group on the pitch of State. Around 20 children were given Beira-Rio Stadium in Porto Alegre.

“It was an amazing season for extremely pleased. I believe we The social and educational ‘Brazil Goal planning foresees introduction of the so- our project. We were successful were somewhat able to make a Program’ (‘Gol do Brasil’) is another CBF called ‘Methodology Application Units’ in bringing a lot of joy, important difference in the lives of children Social enterprise that seeks to change (‘Unidades de Aplicação de Metodologia’, lessons on football and virtues and teenagers in our country”. realities of children and teenagers’ lives UAM), which follow CBF’s excellence throughout Brazil, and which relies on standards in the quality of its rendered for youngsters to take into their – highlighted the CBF Manager football as a special tool to educate, services and employ a groundbreaking own lives and contribute to of Technical Development, Social develop, muster and foster citizenship methodology developed by the Brazilian Responsibility and Sustainability developing citizens. All those responsibilities. To achieve this, its Football Confederation. involved in the project are Diogo Netto

144 2017 MANAGEMENT REPORT 09. SOCIAL AND ENVIRONMENTAL 145 In addition to attendances by the city’s politicians and people who work in education and sports industries in the city, the program launch featured important Brazilian sports personalities. CBF’s Secretary General attended alongside the organization’s personnel and institution representatives associated with football, such as the Vice President of the São Paulo State Football Federation (FPF) Fernando Solleiro; former Brazil National Team player and FPF Vice President of Integration Mauro Silva; former Corinthians player Atalia; Through an agreement made with the Around 200 primary school students Head of Esporte Clube Corinthians Paulista Oldano Carvalho; WTC representative Lilian City Hall and supported by the World from public schools will benefit Bomeny, and UNIESP President Fernando Costa. Trade Center, the Brazilian Football from the program. These children Confederation, by means of CBF Social, and teenagers aged 6 to 13 study in launched the pilot program in the the Comendador Abdalla Chiedde, beginning of October. The main purpose Professor Antonio Lacerda Bacellar is to foster and improve access to and Manoel Baptista da Silva schools everyone in regards to football training. which are located close to the Centro The main ‘goal’, both in the medium and Esportivo Vereador Valentino Redivo long run, is to enable a brighter future Sports Center in Vila Gomes, spot that for the entire target audience benefitted was picked to host classes. by the project. Ten-year old Mayer Geovanna of E.M. The CBF Secretary General Walter Abdalla Chiedde public school is one Feldman stressed the project’s of the students who will participate in significance and justified the choice of the project and was excited about the the city of Ribeirão Pires as the ‘kick-off’ experience: for the Brazil Goal Project. “I am very excited to be a part of this activity that is so meaningful, because I really like “This is a key social football and it is an opportunity responsibility project for to learn more about the sport”. CBF and Brazilian football. We sought political players The sports program featured CBF- who could carry through trained professionals and employed this dream. It aims to bring methodology that was developed by the thrill, excitement and the confederation. They were selected following a training program attended by its public experience to Methodology 60 people who work with sports in the enhance the project. This city. Preparatory classes were carried out can become a cornerstone in using theoretical and practical content, The program methodology includes an invaluable worth for Brazilian people, since it seeks transforming society’s reality and at the end of the program, CBF to translate the five-time World Champion side’s football DNA into an accessible language into democratic and inclusive picked six people who became in charge for sports educators throughout the country. Its development was based upon previous experiences that look after of developing the Brazil Goal Program in experiences and features the support of renowned Brazilian football professionals, everyone’s common good”. the city, which will be supported by CBF in addition to best practices aimed at introducing content and teaching children and Social personnel. teenagers in a unique and entertaining way.

146 2017 MANAGEMENT REPORT 09. SOCIAL AND ENVIRONMENTAL 147 In addition to coach Tite himself, Brazil National Team Coaching Staff members directly With the intent of enabling CBF to supervise teaching units more closely and in a participated in developing the methodology, using their efforts to make its application standardized way, goals/indicators that will be the cornerstones for a focused management as straightforward as possible for future professionals, thereby bringing together sports and aimed at attaining effective results were defined. and education. Below, you can find some of the main project goals:

Staff developed primers for each Primers were devised with the goal specific target audience group, with of engaging those who will use CBF To reach all regions within the aim of introducing content in a Social’s methodology daily in the Brazil Brazil until the end of the customized manner: Goal Project, so as to enable their project’s third year, aimed at ensuring that All project instructors shall attain effective and significant participation the CBF Social Methodology is disclosed the CBF Social Methodology Training • Community Primer; in a continuous manner in Brazilian throughout the entire Brazilian territory in certificate. • Educator Primer; football’s efforts and taking into the upcoming years. • Parent and Guardian Primer; account its specific traits. • Child and Teenager Primer;

To graduate 80% of students who began To achieve 80% student attendances the program at CBF Social Methodology during the academic year, thereby Indicators Application Units starting from the first ensuring effective learning throughout class, until they turn 17. the process.

The program foresees introduction for instance, in addition to information of a system enabling those involved concerning their community and with the project to follow-up on Brazil family lives. Moreover, technical and Goal students’ performances. A digital medical evaluations as well as those platform personally developed by relating to life skills will be regularly CBF will allow students and teachers applied. Furthermore, CBF will offer to enroll, with the aim of keeping up specialization programs to teachers and To ensure that teachers receive 80% with children’s academic indicators class supervision, whether in person or To double the number of students in the or higher evaluations in classes they – classes and classroom attendance, using cameras set up on the pitch. second operating year at CBF Social teach, thereby proving students’ high Methodology Application Units. standard levels.

148 2017 MANAGEMENT REPORT 09. SOCIAL AND ENVIRONMENTAL 149 9.2 FUTURE NATIONAL TEAMS PROGRAM

This program’s goal and targets are similar to those that have already been mentioned, such as those pertaining to the “Brazil Goal” Project. Its end purpose are social and inclusive sports-related criteria. In other words, to enable those benefitted to expand their mindsets, their joy in playing sports and acquiring new sports leisure habits.

• To provide favorable conditions for The main difference is the fact that Sustainability Diogo Netto. Planning playing football; the Ministry of Sports is in charge set forth that the “Future National of managing the program, and the Teams” Project kick off initially as a • To contribute to the improvement of program foresees that cities wishing “pilot” project featuring 14 core centers students’ physical and motor skills, with to participate must send their bids spread throughout 11 cities. The public the intent of enhancing football-related Its goal is to install youth rank centers showing that they meet program bidding notice for the next stage was athletic performances; aimed at developing the ‘Future National requirements. published the day after the launch in Teams Program’ (‘Programa Seleções • To develop activities aimed at the ‘Federal Official Journal’ (‘Diário do Futuro’) within the entire Brazilian contributing to the training and quality The Ministry launched the program Oficial da União’, DOU), introducing territory. The following are specific of students’ lives (self esteem, social in Belo Horizonte in the beginning of required criteria that cities nationwide goals pertaining to the project: interactions and integration, and health). October, which was attended by CBF’s must meet in order to participate in the Secretary General Walter Feldman program. Core centers are expected and CBF’s Manager of Technical to be installed and in full operating Target audience: children and teenagers aged 06 to 17, particularly those enrolled in Development, Social Responsibility and conditions by the first semester of 2018. public schools.

150 2017 MANAGEMENT REPORT 09. SOCIAL AND ENVIRONMENTAL 151 • 20 children from social projects and 9.3 NATIONAL TEAM IN MY CITY Porto Alegre public schools in the region attended the Brazil National Team training session held at Beira-Rio Stadium. Following its national team Whenever the Brazil National Team from local social projects especially commitments, the CBF Social program • 100 children from social projects plays at home, everybody knows what benefitted from several enjoyable made a stop in Rio Grande do Sul State’s actively engaged in the CBF Social happens: the ‘National Team in My City’ moments and were able to get up capital city to use football as a means Football Festival undertaken at Beira- (‘Seleção na Minha Cidade’) project in close and personal with their idols of bringing a great deal of teaching and Rio Stadium; the city hosting the match. In 2017, the in a national team training session. leisure to young people from social cities of São Paulo and Porto Alegre Additionally, they comprised teams’ projects and public schools in the city. • 45 children participated on the pitch hosted the project, particularly due entrance protocol on the pitch and entering rehearsal at Arena Grêmio to the 2018 FIFA World Cup South received sports and life lessons from Activities took place throughout three Stadium for the Brazil vs. Ecuador American Qualifiers. Thus, children CBF Social. days, beginning on Tuesday and match, in addition to the entrance itself concluding on Thursday, match day. on match night; The project featured three 2002 World Cup champions, who participated as • 70 children, teenagers and public last ‘National Team in My City’ campaign, Porto Alegre City ambassadors: former school and social projects teachers São Paulo 50 children who partook in the festival were defenders Lúcio and Anderson Polga, in from Porto Alegre were given free given free entrance to watch the Brazil vs. addition to physical trainer Paulo Paixão. entrance to watch the match at Arena Paraguay match for the 2018 FIFA World In the “scoreboard” of activites Grêmio Stadium. The project certainly enabled an Cup South American Qualifiers at Arena undertaken, several “goals” were scored: unforgettable experience for nearly 200 Corinthians Stadium, and additionally, children hailing from social projects 25 others were invited to take part of the and São Paulo State football-teaching teams’ entrance protocol on the pitch. schools who participated in the Football Festival at Pacaembu Stadium. Applying sports and citizenship lessons, activities undertaken at the stadium brought together football and professional and educational activities.

Much like what took place on the pitch, CBF Social also organized the Beach Soccer Festival in the city of São Paulo. Partnering with the São Paulo State Beach Soccer Federation, activities carried out on the sand of the ‘Edson Arantes do Nascimento Educational Sports Center’ (‘Centro Educacional e Esportivo Edson Arantes do Nascimento’), also known as ‘Pelezão’, assembled nearly 100 youngsters. In the

152 2017 MANAGEMENT REPORT 09. SOCIAL AND ENVIRONMENTAL 153 The aforementioned results were only 9.4 CBF SOCIAL AT THE GREEN CUP achieved thanks to people who carried out key activities in this season’s edition of the competition, those being the following: The competition played by teams hailing During a meeting held at the Ministry from the North and Center-West regions of the Environment, CBF submitted of Brazil, in addition to Espírito Santo social and environmental activity results • Full competition carbon emission • In partnership with the MMA, the State, also features a wide host of undertaken at the 2017 ‘Green Cup’ compensation (265 tons of CO2) by planting ‘Akatu Institute’ (‘Instituto Akatu’) held activities aimed at raising environmental (‘Copa Verde’), which greatly impacted 1,450 tree seedlings in Anapu in Pará State. conscious consumption workshops awareness, such as recycling, essay the organization and encouraged an This measure will recover one hectare of with over 30 children from the ‘Propaz contests on environmental subjects, increasing environmental awareness on riparian forest in the agroforestry system. Institute’ (‘Fundação Propaz’) of football classes for underpriviledged all those involved. Seedlings were planted by local grassroots Belém in Pará State during the final children and activities intending to farmers and also thanks to a partnership match; reduce carbon emissions. made with the ‘Amazon Research Institute’ (‘Instituto de Pesquisa da Amazônia’, Ipam), • CBF Social carried out football ‘Green Initiative’ (‘Iniciativa Verde’) and classes featuring sustainability content Anapu City Environmental Office; and using games with environmental subjects; • 2.57 tons of PET plastic bottles recycled, corresponding to 100,000 less PET plastic • The “Vivo Trophy” was given to the bottles on the streets. At competitions, fans winners (champions Luverdense and exchanged bottles for tickets or donated runners-up Paysandu). This award was them. This action helped make football a planted at these clubs’ headquarters: it sustainability awareness tool and increased is actually a tree biomass seedling from the population’s access to stadiums; these teams’ regions;

• Reaching record zero waste emissions • Delivery of the FSC Trophy, which at the Paysandu vs. Luverdense match was built in wood that is internationally played at Pará State’s Olympic Stadium certified by the Brazilian Forest in Belém, also known as “Mangueirão”. Management Board; Fifty garbage collectors from three cooperatives participated and collected • Distribution of 1,000 ecological the following: 410 kg of paper; 230 kg of cups at the final match, resulting in PET plastic bottles; 2 kg of aluminum; approximately 60 kg fewer plastic cups; 20 kg of plastic; 600 kg of cardboard and 180 kg of waste – amounting to 1,262 kg. • Essay and video contests on the During the entire Green Cup, 2,682 kg “Flying River” subject. Forty-five schools from Belém, the Federal District and Ministry of the Environment and CBF of waste was collected by 120 garbage “We are taking our first steps Mato Grosso State participated, reaching representatives, including CBF’s collectors and 7 cooperatives. This towards what will become a new 6,400 students in all. Both winners Secretary General in addition to enterprise helped stop 19 tons of carbon sustainable development model. and 51,6 m3 of water emissions; received awards at the final match. Thanks to the Green Cup, Brazil politicians and businessmen, attended is now an example in sustainable the meeting focused on disclosing tournament-related social and competitions” - stated the Minister of environmental results. the Environment Sarney Filho. In addition to significant results achieved, CBF is directing its efforts towards enabling the Green Cup to receive the ISO 20121 compliance certification already in 2018, which is the management regulation related to sustainable events.

154 2017 MANAGEMENT REPORT 09. SOCIAL AND ENVIRONMENTAL 155 9.5 EVENTS

CBF Social and UN Seminar

Featuring a thought-provoking debate Carried out by CBF Social in The 1994 World Cup winner Jorginho “I knew I could change my at CBF’s headquarters in Rio de partnership with the United Nations inaugurated the ‘Challenges and community. And thanks to God, I Janeiro, the ‘Social Responsibility, Office on Drugs and Crime (UNODC), opportunities for life skills programs was able to carry out this project. Crime Prevention and Safeguarding of the event addressed the sport’s role within the youth sports setting’ Football changed my life, but Young People within the Sports Setting’ as an agent of peace and safeguarding (‘Desafios e oportunidades para I was a top-level performing (‘Responsabilidade Social, Prevenção ao of children and teenagers, particularly programas de habilidades para vida player.. How can it change the Crime e Proteção de Jovens no Contexto those in social vulnerability no contexto esportivo juvenil’) pannel, do Esporte’) Seminar came to an end on conditions. which also featured an exchange of lives of those who fail to reach 31 October, stressing football’s ability to ideas with professor Cyro (responsible that level? If we bring together transform young Brazilians’ lives. for introducing the ‘Let’s Do it’ (‘Vamos social sports, culture and Nessa’) methodology at Vidigal’s professional development, we Olympic Village, and the CBF Technical can do a lot for youth. I will keep Development, Social Responsibility and working and dreaming about a Sustainability manager Diogo Netto. better country and city”. During presentation of social project – Jorginho declared. ‘Ball Ahead’ (‘Bola na Frente’), Jorginho talked about his inspirations and desire to change the reality of Deodoro, the community he grew up in the Rio de Janeiro suburbs.

Lastly, the Seminar discussed the need to guarantee a “Full-time safeguarding of children and teenagers in sports”. Hosted by Carlos Nicodemos of the Former Counselors and Youth Counselors Association, the last debating board featured participations from Augusto Souza (UNICEF), Thais Toledo (ACESSOSS), Fernando Fernandes (social assistant at Santos Football Club), Maristela Eleutério (social assistant at Botafogo Futebol e Regatas Club) and judge Siro Darlan.

156 2017 MANAGEMENT REPORT 09. SOCIAL AND ENVIRONMENTAL 157 10 GOVERNANCE AND COMPLIANCE GOVERNANCE AND COMPLIANCE Aimed at placing the organization at In light of this, the organization devised a management standard level among a project deployment plan foreseeing a GOVERNANCE Brazil and the world’s top sports schedule that would meet CBF’s other 10 organizations, 52 projects were picked priorities in leading and coordinating for the organization to execute. All Brazilian football. Consequently, AND COMPLIANCE of them had the common ground they were drawn up into a “roadmap” of featuring the best corporate and that envisaged structuring actions sports market practices, in accordance followed by others specifically aimed at with the GRC methodology applied to upgrading the organization. major worldwide organizations by said consultancy firm. The Program was conceived pursuant to three cornerstones that are executed That was how CBF’s GRC Program in unison, with the purpose of enabling came about, consisting of a progressive the organization to achieve its strategic deployment procedure supported by goals with enhanced efficiency, measures recommended by EY and transparency and safety in light of the approved by CBF’s Presidency and risks and threats pertaining to the In this chapter, we will disclose the • Loyalty to its institutional mission; Board of Directors. football business market. main achievements made by the • Internal and football upgrading; Brazilian Football Confederation in • Enhancing transparency; regards to its governance, as well • Appreciating democracy – keeping an as related procedures guiding its open dialogue with society; suitability with respect to the broad • Introducing best governance and regulatory and legislative framework compliance practices; 10.1 GOVERNANCE that apply to its operations. In order • Awareness of its social and to do so, though, we need to provide environmental duties. an overview on the setting concerning Together with EY’s recommendations, the Comprised of 18 members from some very significant current issues. organization’s governance projects also several football-related fields, the Guided by said principles and seeking significantly contributed to the Reform Committee divided its members efficient and long-lasting results, CBF Committee. In tune with democracy and into various task forces constituted In previous years, particularly effective hired international consultancy firm participation premises defined by the of individuals possessing extensive the beginning of CBF’s current office, EY (Ernst & Young) in 2015, when its current CBF office, the Committee that knowledge on the following study the organization began directing its framework was mapped out as well was introduced by CBF on February 2016 subjects: Code of Ethics, By-Laws efforts towards enabling a profound as two ongoing internal procedures. began discussions aimed at pinpointing Reform, Football Calendar, Women’s and comprehensive transformation The organization then used this the main current challenges towards Football, Club Licensing and in its governance, in addition to assessment to focus on enhancing the developing football in Brazil, and from Registration, CBF Social and Football its compliance setting, thereby Governance, Risks and Compliance there on, devised proposals to leverage Globalization. establishing four key cornerstones: Program (GRC). its virtuous transformation cycle.

160 2017 MANAGEMENT REPORT 10. GOVERNANCE AND COMPLIANCE 161 We can highlight the following outcomes that resulted from this broad evaluation and discussion procedure spearheaded by the Committee in regards to the subjects addressed herein:

• Redrafting of CBF’s By-Laws, whereby its organizational framework was redefined and independent governance bodies were created;

• Developing the Integrity Program’s cornerstones, which we will discuss in section 10.2 – Compliance. Enhancement of Legal Frameworks

Aimed at settling conflicts that may Having settled over 80 cases arise resulting from interactions throughout 2017, the CNRD has Redrafting of the By-Laws between entities that comprise the become one of Brazil’s main football system more efficiently, alternative arrangement dispute such as federations, clubs and resolution chambers. On 23 March 2017, spurred by the GRC Program and recent FIFA and CONMEBOL intermediaries, the ‘National requirements, a General Administrative Assembly was called up to pass the new CBF By- Dispute Resolution Chamber’ Moreover, CBF appointed the ‘Brazilian Laws and Brazilian Football’s Code of Ethics and Conduct. The following were the main (‘Câmara Nacional de Resolução de Refereeing Arbitration Center’ (‘Centro novelties included in these documents: Disputas’, CNRD) was established. Brasileiro de Mediação de Arbitragem’, This chamber is empowered with CBMA) to perform as an appeals and jurisdiction, coordinating, performance independent legal body inside the and operating powers, as well as sports setting that can lodge appeals procedures and sanctions set forth in pursuant to a final ruling made by the Administrative Control accordance with specific regulations CNRD. Best Corporate Governance practices passed by CBF’s Board of Directors.

The following corporate governance • Establishment of new management practices were introduced: and governance frameworks, such as: Ellectoral College Upgrade • Three signatures required on every > Board of Administration; agreement the organization signs; > Ethics Commission, whose efforts Changes made to the By-Laws enabled Voting system rules included in the • Bids required for CBF to acquire are based upon the Code of Ethics and more Brazilian clubs to comprise the organization’s new By-Laws comply goods and hire services; features investigation and court bodies; organization’s electoral process. Twenty with criteria set forth under current • Establishment of CBF’s Executive > Corporate Governance and clubs playing in the Brazilian Série B Brazilian legislation. Management Department (CEO); Compliance Board; Championship were added to CBF’s electoral college Board of Diretors. • Redifining of the CBF General > Club Licensing Commission; Previously, only state federations and Secretary’s attributions; > Finance, Budget and Sponsorship Brazilian Série A Championship clubs • Inclusion of the Governance and Commission; were allowed to vote. Compliance Department, among other statutory departments; > Reporting Channel.

162 2017 MANAGEMENT REPORT 10. GOVERNANCE AND COMPLIANCE 163 10.2 COMPLIANCE Corporate Governance and Compliance Board Compliance measures are not Starting with these premises, it restricted simply to meeting regulatory proceeded to conceive the CBF Integrity criteria, but instead concern a more Program, which was designed so as comprehensive process. to envisage not only aforementioned Also established in 2017, the Corporate Pursuant to the organization’s By- frameworks (Code of Ethics, Ethics Governance and Compliance Board Laws, the Board and its members The role carried out by compliance Commission and Reporting Channel), takes on a leading role among all “shall pursue excellence in corporate is also seen by CBF’s Board of but particularly focused on duties other governance bodies. It features governance and compliance, with the Directors as a means of safeguarding related to risk management. permanent members, those being the aim of reinforcing and creating the any potential adverse event that can Secretary General, Chief Executive best possible conditions for developing negatively affect the organization. In Consequently, the organization began Officer and Heads of the Legal Brazilian football”. This shall be other words, a set of risks to which it to learn from the process as it carried and Governance and Compliance accomplished using the following is exposed. Bearing this in mind, CBF it through and believes that reaching Departments; it has the powers to principles as its main cornerstones: sought to develop a risk management the desired high level compliance level assemble whenever it wishes and framework aimed at helping it to results obligatorily from introduction take its matters to the entire CBF • Disclosure; Board of Directors whenever it deems further support said role. of a sound risk mitigation method. The such actions necessary or urgent. As • Fairness; program’s full enterprises and actions established under its internal By-Laws, are described hereinafter. its regular meetings take place quarterly. • Accountability;

The Head of Governance and • Compliance. Compliance reports both to Top Management as well as the Board To give a better understanding as to itself. He is in charge of submitting how the Board communicates with important issues from his department other frameworks, please see the for the collegiate to discuss and illustration below: Developing Deployment Foundations appraise.

This was initially a set of activities and I – Corporate Governance and methods conceived with the purpose of Compliance Board; Reporting Framework between Board, Governance Department and Top Management leading CBF towards meeting the full regulations, laws and legislative criteria II – Ethics Commission; PRESIDENCY Supports Top that apply to its line of work. Thus, the CHIEF EXECUTIVE OFFICER’S OFFICE Management organization firstly established what III – Football Ombudsman Department SECRETARY GENERAL’S OFFICE BOARD OF DIRECTORS it proceeded to call the ‘Compliance and Reporting Channel. and Inspection Bodies’ (‘Órgãos de Fiscalização e Conformidade’), which We will include an overview on each of BOARD MEMBERS are the following: these frameworks hereinafter: CORPORATE GOVERNANCE GOVERNANCE AND COMPLIANCE • Chief Executive Officer; AND COMPLIANCE BOARD DEPARMENT • Secretary General; • Head of the Legal Department; • Head of the Governance Reports to and Compliance Department. the Board

164 2017 MANAGEMENT REPORT 10. GOVERNANCE AND COMPLIANCE 165 The Brazilian Football Code of Ethics

This relates to the device established to Some of the main features of the Code govern and define procedures according include its scope and compliance with to ethical standards pertaining to those anti-corruption legislation. Moreover, who work in Brazilian football. The it addresses issues related with document was widely discussed and relationships with Public Administration, put into public debate in 2016 by the conflict of interests and practices that Inaugural GCC meeting. Reform Committee, and furthermore, uphold match integrity in CBF-organized was developed by said task group. The competitions, including, additionally, Legal Department also reviewed and sanction deadlines enforced by the concluded it, receiving final approval at Ethics Commission. Ethics Commission the March 2017 General Assembly.

As aforementioned, the Ethics It is comprised of two chambers: The following persons answer to the Commission became an independent Investigation and Trial, and each one Code of Ethics: statutory body whose president is shall be constituted of three • CBF (President, heads of chosen by CBF’s Board of Directors and members. departments and employees) serves a 2-year term. • State Federations and their members • Football Clubs and their members PRESIDENT President of the Brazilian Football Ethics Commission • Leagues and their members Counselor: CARLOS RENATO DE AZEVEDO FERREIRA • Elected, appointed or hired officials

President of the Investigation Chamber • Players Counselor: GLADYS REGINA VIEIRA MIRANDA • Coaches and Coaching Staffs

Counselor of the Investigation Chamber • Referees and assistant referees ANTONIO CARLOS DE AGUIAR DESGUALDO • Medical field professionals working in football Counselor of the Trial Chamber MARCO AURELIO RAVANELLI KLEIN • Intermediaries and match organizers AMILAR FERNANDES ALVES • Clients TRIAL INVESTIGATION • Suppliers CHAMBER CHAMBER 1 • Business partners

As established under the organization’s By-Laws, it is an “autonomous and independent body with powers to appreciate, investigate, prosecute, try and punish ethical-related It is worth noting that CBF provided due training related to said code to its collaborators violations”, and is governed by the Brazilian Football Code of Ethics and Conduct. upon its introduction.

166 2017 MANAGEMENT REPORT 10. GOVERNANCE AND COMPLIANCE 167 Reporting Channel

The channel was established and opened to the general public (both to CBF employees as well as the general Brazilian public) after the Brazilian Football Code of Ethics was passed. It was conceived as an online platform that can be accessed both through the eticadofutebolbrasileiro.com.br homepage address as well as CBF’s own homepage.

The page enables all those interested to browse the Code of Ethics, roster of Ethics Commission members and form for detailing any kind of situation that can be deemed a code violation. Moreover, interested parties can follow- up on different procedural stages relating to their complaints submitted in the platform.

First Training Program on the Brazilian Football Code of Ethics and Ethics Channel (19 April 2017).

It is important to stress that complaints made are only Risk Management available to those in charge of examining them, that is to say, Ethics Commission members. Aimed at stopping harmful events from Access is restricted and the Deployment of the corporate risks The risks management procedure taking place, foreseeing challenges management procedure within the was based on the COSO (Committee Ethics Commission carries out its that threaten its strategic goals and organization was undertaken carefully, of Sponsoring Organizations of the efforts with the highmost level of supporting Top Management decisions, with a first operational stage featuring Treadway Commission) methodology confidentiality and safeguarding the Governance and Compliance self-assessment interviews with heads and ISO 31.000 Standard, which set of potential complainants. As of Board introduced the Corporate Risks of departments concerning their views forth risks management system 2017, the Ethics Commission has Management procedure. on key risks most commonly related to requirements. received over 80 ethically-related issues under their responsibilities. violation complaints.

168 2017 MANAGEMENT REPORT 10. GOVERNANCE AND COMPLIANCE 169 Corporate Risks Management procedure – CBF-introduced model 1 2 3 4 5

SETTING AND INITIAL RISK CBF RISK RISK EVALUATION AND MONITORING AND Quality Management System PERCEPTION METHODOLOGY IDENTIFICATION PRIORITIZATION REPORTING ISO 9001:2015 Certified

Aimed at keeping track of enhancement efforts during its current term of office, at the same time CBF kicked off proceedings aimed at getting itself ready for and introduced a quality management Initial examination Conception of carried out by Self-assessment Assessment a monitoring system that was certified by an the Governance Drafting of a interviews with on CBF’s risk and reporting INMETRO-accredited independent body in and Compliance Corporate Risk each CBF head of appetite and risk Dashboard to Department Management department and prioritization in the Corporate compliance with ISO 9001:2015 standards. on the main Policy filling out of Risk the Criticality Governance and corporate risks Forms Matrix Compliance We must point out that following the CBF faces Board entire preparatory stage undertaken with the support of an expert From there on and aimed at supporting the risk management procedure, a dedicated tool consultancy firm (Qualimetria), CBF was developed in conjunction with the consultancy firm’s assistance to consolidate, rank and the operating departments and monitor corporate risks. It was called the risk monitoring dashboard. pertaining to the management system scope were initially evaluated through an internal and independent audit that firstly assessed CBF’s suitability regarding standard requirements. At a later stage, the organization was evaluated again in an audit undertaken by the certifying body, after which point it was finally granted the certification.

The CBF quality management system • Competitions; Risk dashboard screens encompasses the organization’s main activities, which are under • Registration and Transfers; The tool enables an enhanced performance of compliance roles. The organization can use it the responsibility of the following to filter and find out key risks, which, in turn, guide the most significant procedures to which departments: • Refereeing. said risks relate to. Thus, the dashboard is able to swiftly point out where improvement efforts should mostly be directed.

170 2017 MANAGEMENT REPORT 10. GOVERNANCE AND COMPLIANCE 171 Among many other benefits rendered, In order to measure and follow-up on introducing ISO regulation international results of CBF’s quality management standards enables and accredits CBF to system, the following activities were attain the following: specified: • Sounder procedures – taking advantage • Monitoring procedure-related of opportunities to minimize risks; performance indicators; • Resourceful and dedicated • Introduction of a methodology aimed personnel for each activity – with clear at measuring client satisfaction; assignments on what they must do and • Customer surveys aimed at finding how to do it (ethical conduct); out client insights; • Suitable information systems – • Assessments and efforts in key issues technology and efficiency. related to survey results.

All improvements made resulting from introducing the quality management The purpose of the standard system come together to achieve one is to ensure clients that the of CBF’s main goals, in other words, to company will develop its products The CBF Head of Governance and Compliance speaks at the FIFA headquarters in Zurich, enhance the quality level of its services and services in a recurring and Switzerland, during the FIFA Compliance Summit (October 2017). rendered to its ‘clients’ who, in regards consistent manner. to the ISO standard application, were deemed national clubs. 10.4 CONCLUSION Lastly, you will find below an overview table on the deployed management system’s procedure and cycle – as well as its scope – in compliance with ISO 9001:2015. It is safe to say that the Governance World Cup legacy, FIFA Forward and Compliance Department was Program and CONMEBOL’s Programa Overview on the SGC CBF and its scope established with the purpose of Evolución funds; “supporting other CBF Departments in ORGANIZATION fulfilling Compliance requirements, in • Progress achieved in regards to the SETTING TOP MANAGEMENT PROCEDURES addition to enhancing the organization’s deployment status of the Governance, Governance”. After looking at activities Risk Management and Compliance undertaken, we can point out significant (GRC) Program, which increased from results achieved already in its first year 46% to 83% during the period; REFEREEING PROCEDURES CLIENT SGQ of operations. REQUIREMENTS RESULTS • CBF participation at the FIFA COMPETITIONS PROCEDURES • A closer relationship with CONMEBOL Compliance Summit at the FIFA and FIFA’s Compliance departments, headquarters in Zurich, Switzerland, in REGISTRATION AND TRANSFER PROCEDURES which acknowledged the significance of which it introduced CBF’s Compliance CBF’s Compliance Program; and Risk Management system as a STAKEHOLDER NEEDS model to be used by other Brazilian AND EXPECTATIONS HR, IT, LEGAL, FINANCIAL AND • FIFA and CONMEBOL funds secured, football federations. QUALITY SUPPORTING PROCEDURES such as those relating to 2014 FIFA

172 2017 MANAGEMENT REPORT 10. GOVERNANCE AND COMPLIANCE 173 11 FINANCIAL 11 FINANCIAL INFORMATION

In this chapter we will disclose Furthermore, the regional ‘Green Cup’ the main financial information (‘Copa Verde’) tournament received a 11.1 ASSETS pertaining to the Brazilian Football significant 67% increase in financial aid. Confederation for the 2017 fiscal year. We must point out that all The Confederation remains steadfast in financial information herein was its mission to bolster Brazilian football, From 2010 to 2017, CBF’s total assets increased 287%, a R$ 656,538 million rise in 7 years audited, verified and ratified with no enhance doping control operating resulting from a consistent 20% average increase per year. This is a significant figure when exceptions by an independent auditing procedures, refereeing and train taking into account a near 63% inflation rate in the same period. company. Moreover, the organization managers throughout the country. restates its transparency in keeping Hereafter, we will describe each of the audited financial information and main financial aspects, which will be its explanatory notes in its official further detailed in the related sections: Total Assets – Annual Base website for public inquiries.

885,244 900,000 1) Assets CBF continues to sustain and fulfill 800,000 764,841 its institutional role in fostering 2) Revenues 700,000 625,507 and supporting the development of Brazilian football, which can be 3) Revenue Forecast 600,000 527,326 substantiated through the information 500,000 456,359 contained herein. 4) Total Expenditure 362,844 400,000 310,782

300,000 Figures endorse overall investment 5) Direct Football-related Costs 228,706 increases in three key organization 6) Operating Expenditures 200,000 cornerstones: national teams, 100,000 competitions organized and support of 7) Taxes 0 its affiliated organizations, the State 8) Cost and Expense Forecast Federations (in charge of fostering 2010 2011 2012 2013 2014 2015 2016 2017 local football and organizing regional 9) Operating Income and Net Surplus tournaments). 10) Liquidity and Debt Source: Financial Department – sums in thousands of Reais.

176 2017 MANAGEMENT REPORT 11. FINANCIAL 177 11.2 REVENUES 11.2.1 OPERATING REVENUE

CBF’s total revenues, accounting for sponsorship agreements are backed Operating revenues can be divided into 5 main groups, pursuant to the table below. everything the organization levied by foreign currencies, and moreover, in the year, reached the sum of R$ in accordance with accounting norms, 590,217 million. This meant a 9% cut said agreements endowed to the OPERATING REVENUE % OF TOTAL % OF TOTAL VAR 2017 2016 when compared to the total revenue in current financial year pursuant to the (in thousands of Reais) REVENUE REVENUE 2016 -2017 2016, which resulted particularly from exchange rate in the first business day SPONSORSHIPS 353,379 60% 410,988 64% -14% low foreign currency exchange rates, of the year. BROADCASTING AND COMMERCIAL RIGHTS 95,888 16% 117,264 18% -18% especially when considering that CBF’s BOX OFFICE AND NATIONAL TEAM PRIZE EARNINGS 56,748 10% 43,342 7% 31% LICENSES, TRANSFERS AND REGISTRATIONS 15,766 3% 15,172 2% 4% OTHER 22,691 4% 10,912 2% 108% Total Revenues – Annual Base TOTAL 544,472 100% 597,698 100% -9%

Source: Financial Department – sums in thousands of Reais.

700.000 646,972 590,217 600.000 When looking at operating revenues With respect to sponsorships, we stratification, we find that the main find that this variance is considerably 500.000 total revenue positive variance in tied with unfavorable foreign 400.000 comparison with 2016 pertains to currency variances at the beginning 300.000 National Team Match box office of 2017, due to the fact that part of 200.000 Revenues, which recorded a R$ 13,406 CBF’s sponsorship agreements are 100.000 million increase, thereby signaling a backed by foreign currencies, and in 2016 2017 31% rise. This growth is directly related accordance with accounting norms, to the national team’s 2018 World said agreements are endowed to the Cup Qualifier performance, which current financial year pursuant to Source: Financial Department – sums in thousands of Reais. resulted in thousands of supporters exchange rates in the first business attending stadiums. In the last match day of the year. It is worth noting that of this competition, it reached record the advertising sports market is still Brazilian football box office earnings: undergoing harsh impacts related to Total revenues can be split into operating revenues and financial revenues. with a R$ 15,118 million profit, the Brazil’s economic crisis. Nevertheless, Brazil National Team broke the record CBF managed to retain somewhat of set by Atlético-MG in its 2013 Copa a stability in regards to sponsorship Libertadores championship match, agreements. which had raked in R$ 14,176 million.

178 2017 MANAGEMENT REPORT 11. FINANCIAL 179 Brazil National Team Operating 2017 Sponsorship Revenue Breakdown Revenue Figures and Competitions Total sponsorship revenues faced a pursuant to exchange rates in the first 14% drop when compared to 2016. This business day of the year. decrease results from lower foreign In the table below, we find that CBF’s total operating revenues relate to two main operating currency exchange rates in the beginning It is important to note that CBF does not scopes: National Team and Competitions. The Brazil National Team alone accounts for 81% of 2017, in comparison to the beginning have any government-related sponsor, of total operating revenues, reaching the sum of R$ 442,507 million in 2017. of 2016. As aforementioned, part of CBF’s that is to say, both sponsors specifically sponsorship agreements is backed by related to the Brazil National Team Revenues resulting from CBF-organized competitions account for 15% of total figures, or foreign currencies. Said agreements, in as well as those who solely support R$ 79,099 million. accordance with accounting regulations, tournaments originate from private are endowed to the current financial year organizations.

2017 OPERATING REVENUE NATIONAL TEAM COMPETITION OTHER TOTAL (in thousands of Reais) SPONSORSHIPS 340,277 12,927 175 353,379 Broadcasting and Commercial Rights BROADCASTING AND COMMERCIAL RIGHTS 45,482 50,406 - 95,888 MATCHES PLAYED 56,748 - 0 56,748 OTHER - - 22,691 22,691 The second budget item that most overall operating revenues. When TOTAL 442,507 79,099 22,866 544,472 generates revenues encompasses examining the item broken down by commercial and TV broadcast agreements segment, we find that competition-related for Brazil National Team matches, in commercial and broadcasting rights stand Source: Financial Department – sums in thousands of Reais. addition to CBF-organized competitions. for 53% of this item’s overall figures, whereas sums related to the Brazil Total figures pertaining to this item National Team account for remaining account for 18% of the organization’s numbers: 47% of total revenues. Sponsorship Broadcasting and Commercial Rights Revenues – Annual Base

The sponsorship revenue group consists of revenues resulting from Brazil National 140,000 117,264 Football Team sponsorship revenues as well as those pertaining to sponsorship of CBF- 120,000 organized tournaments. It is worth pointing out that the organization does not receive 100,000 funds or sponsorship from public organizations. 95,888 80,000 In 2017, sponsorship revenues reached the sum of R$ 353,379 million, accounting for 60,000 65% of total operating revenues, whereas sums related solely to the Brazil National 40,000 Team constituted 95% of total sponsorship figures and 63% of the organization’s total 20,000 operating revenues. 0 2016 2017

Source: Financial Department – sums in thousands of Reais.

180 2017 MANAGEMENT REPORT 11. FINANCIAL 181 This negative variance relating to and the broadcaster holding the broadcasting rights is considerably TV rights. Box Office and National Team associated with low Dollar exchange rates in 2017, which accounted for a In 2017, we can highlight CBF’s 19% negative variance in regards to role in leading negotiations with Prize Money Earnings 2016 as well as due to the fact that the broadcaster network holding part of CBF’s broadcasting rights the rights. Therefore, this enabled agreements are backed by said a significant increase in Brazil Cup The Brazil National Team’s participation CBF management’s also efficient role foreign currency. participation and prize money sums, in 2018 FIFA World Cup Qualifier in regards to match organization and which is the country’s most democratic matches and friendlies generated box pricing strategies enabled, as previously The Séries B, C and D editions of the and accessible competition. Adding up office revenue, agreement sums and mentioned, a record box office profit of Brazilian Championship, in addition sums of each competition stage and competition prize money earnings. Said R$ 15,1 million in a single match. to the men’s and women’s Brazil Cup championship prize money earnings, figures are detailed in this revenue line. and Women’s Brazilian Championship, the winning squad can rake in up to In all, the organization levied R$ 56,748 comprise sums pertaining to this R$ 67,300 million, which accounts for In 2017, the main Brazil National million in 2017, posing a significant budget line. Brazilian Série A a 425,78% increase when compared Team played 11 matches, and 6 of increase when compared to 2016, Championship broadcasting rights to prize money offered to the 2017 them were World Cup Qualifiers and at which time the sum reached are not included here. It is also worth champions, which at that time received 5 were additional friendly matches. accounted for R$ 43,342 million. This noting that Série A broadcasting rights R$ 12,800 million. Of these 11 matches, 7 were played growth resulted particularly from high are negotiated directly between clubs overseas, of which 3 were qualifiers and attendance numbers in Brazil World 4 were friendlies. The Brazil National Cup qualifier matches as well as the Team’s high level performances in increasing number of matches played matches played, in addition to the overseas in comparison with 2016. Brazil Cup Champions Earnings – 2017/2018 Comparative Graph

12.8 67.3 Box Office and National Team Prize Money Earnings – Annual Base

+ 60 56,748 425% 50 43,342 40 30 20 10 0

2017 2018

2016 2017 Source: Financial Department – sums in thousands of Reais. Source: Financial Department – sums in thousands of Reais.

182 2017 MANAGEMENT REPORT 11. FINANCIAL 183 Thus, revenues resulting from to develop Brazilian football through the participations, prize money earnings Financial Assistance Program. Other and box office revenues should be greater in comparison with 2017. Taking into account the context at hand, the organization will carry on Additional revenues are expected to focusing its efforts aimed at keeping This revenue group is comprised of budget line’s growth, which reached undergo substantial increases, since CBF its finances sound, as described sums originating from CBF Academy the sum of R$ 4,896 million in 2017, will receive FIFA and CONMEBOL funding throughout this report. programs, Brazil National Team thereby standing for a 208% growth in Museum box office revenues and fines, comparison with 2016, at which among others. The CBF Academy time figures accounted for is particularly accountable for this R$ 1,589 million. 11.4 TOTAL EXPENDITURE

11.2.2 FINANCIAL REVENUE CBF’s total expenditure reached the sum 2016 and 2017. In spite of decreases of R$ 539,512 million in 2017. This posed in total expenditures, football-related a 11% drop in comparison with 2016 costs increased when compared with the total expenditures. Total expenditures sum of costs and operating expenses. On the other hand, in 2017 financial million. This negative variance results are comprised of football-related costs In 2016, costs accounted for 60% of said revenues reached R$ 43,428 million, especially due to the SELIC rate drop, and other expenses, as can be seen in expenses, whereas this percentage posing a 12% fall in comparison with thereby generating a decreased financial the graph below where we compare climbed to 61% in 2017. 2016, when figures totalled R$ 49,294 return for investments made by CBF. Costs vs. Expenses – Annual Base

350,000 288,172 281,709 11.3 REVENUE FORECAST 300,000 250,000 192,039 183,66 200,000

150,000 In 2018, CBF expects greater It is worth reassuring that CBF has 100,000 60,021 stability coupled with an increase been actively engaging in marketing and 9,407 62,841 64,830 50,000 in the organization’s total revenues, activation strategies alongside sponsors, 178 0 particularly due to it being a World Cup with the aim of increasingly showing the 0 year as well as Copa América for the significance and potencial of the Brazil COSTS OPERATING FINANCIAL OTHER TAXES Women’s National Team, in addition National Team brand, in addition to EXPENSES EXPENSES EXPENSES to the exchange rate’s stabilization. tournaments the organization promotes.

Decreases in foreign currency exchange 2016 2017 Source: Financial Department – sums in thousands of Reais. rates mostly impact sponsorship National team box office revenues and revenues, since part of the agreements prize money earnings should experience are backed by foreign currencies. an increase when taking into account This near R$ 63,739 million drop can be explained particularly due to the R$ 39,022 million the fact that the national teams will play exchange rate variations and occasional incidences of INSS-related lawsuits that took important tournaments. place in 2016. CBF endowed R$ 12 million to pay said contingencies, in addition to R$ 8 million in financial expenditures tied to the INSS fine.

184 2017 MANAGEMENT REPORT 11. FINANCIAL 185 When looking at the 3 groups, direct football-related costs reached the sum of R$ 281,708 11.5 DIRECT million in 2017, signaling a 2% cut when compared with the previous year, at which time FOOTBALL-RELATED COSTS total figures accounted for R$ 288,172 million. 1 Football Costs – Annual Base BRAZIL Sums accounted for as direct football- NATIONAL TEAM

related costs can be split into three 350,000 groups: 2 288,172 281,709 COMPETITIONS 300,000 250,000 200,000 3 150,000 FOOTBALL 100,000 DEVELOPMENT 50,000

2016 2017

Source: Financial Department – sums in thousands of Reais.

1 BRAZIL NATIONAL TEAM: 2 COMPETITIONS: Football cost decreases in comparison with 2016 can be explained mostly due to the fact Currently, CBF keeps and manages a The second costs group concerns that the Brazil National Team played only one competition in 2017, namely the 2018 FIFA total of 8 national teams, those being disbursements for competitions that are World Cup Qualifiers, in addition to playing few friendly matches. In 2016, in turn, Brazil the following: mostly comprised of expenditures with National Team-related costs increased resulting from its participation at the Copa América refereeing, doping control exams, air and Centenário played in the United States, the Rio Olympic Games and a greater number of • Men’s: Main, Olympic, U-20, U-17, land travel, as well as lodging costs for World Cup Qualifier matches. U-15; CBF-organized competitions. In examining groups, we find the following: • Women’s: Main, U-20 and U-17. 3 FOOTBALL DEVELOPMENT: The “Brazil National Team” group Costs per Group – Annual Base is used to account for costs with The third costs group is used to every “Brazil National Team”. It record contributions made towards consists of CBF outlays relating to: developing football in Brazilian States. 147,272 150,000 coaching staff, delegations, airfare, It consists of funds transferred to 122,934 meals, lodging, administrative Federations for operating expenses 100,000 costs related to the national teams aimed at fostering development of 66,994 73,907 73,836 84,939 department and other items deemed Regional Football in Brazil, pursuant 50,000 necessary for national team operations to article 12 of the CBF By-Laws. This

and development at competitions, and group also includes costs pertaining to 0 preparatory friendly matches played Granja Comary and supporting bodies during the year. and departments. 2016 2017

BRAZIL NATIONAL TEAM COMPETITIONS FOOTBALL DEVELOPMENT

Source: Financial Department – sums in thousands of Reais.

186 2017 MANAGEMENT REPORT 11. FINANCIAL 187 11.5.1 BRAZIL NATIONAL TEAM-RELATED COSTS

When we look at cost groups, it is easy to costs during the period, or 23% of total We came to important conclusions after comparing gross earnings with football-related see that the main one concerns the Brazil operating revenues in 2017. As described costs. Direct costs with tournaments exceeded corresponding revenues. In other words, National Team. In 2017, it amounted to previously, CBF is in charge of 8 national we found a deficit amounting to nearly R$ 45,141 million. R$ 122,934 million, corresponding to teams, including the main ones as well as 44% of the organization’s football-related youth rank, men’s and women’s squads. Revenues vs. Costs – Competitions Costs per National Team – 2016/2017 Comparative Graph

135,000 124,240 100 99 96 80 90,000 79,099 60 45,000 40 33 15 20 14 13 0 0

MAIN NATIONAL TEAM YOUTH RANK NATIONAL TEAMS WOMEN’S NATIONAL TEAMS REVENUE COST

2016 2017 Source: Financial Department – sums in millions of Reais. Source: Financial Department – sums in thousands of Reais.

11.5.2 COMPETITION-RELATED COSTS 11.5.3 FOOTBALL DEVELOPMENT COSTS

The ‘Competitions’ group relates to the Costs pertaining to Brazilian Séries As outlined before, the “Football figure reached R$ 73,836 million, second biggest cost group, accounting C and D Championships reached R$ Development” group encompasses corresponding to 26% of the for outlays in the sum of R$ 84,939 62,057 million, which correspond to outlays aimed at organizing state organization’s football-related costs. million. This posed 30% of total football- 73% of competition expenditures. championships and Granja Comary When compared with 2016, this budget related costs and equals 17% of the Revenues generated from both of as well as for supporting bodies line introduced a 10% increase. organization’s total operating revenues these tournaments and resulting from and departments. In 2017, this in 2017. In the same year, CBF promoted broadcasting rights equaled R$ 6,190 and organized 16 tournaments, 2 more million or 10% of the sum CBF invested than in the previous year, at which time in the Séries C and D. 1,920 matches and one virtual football games tournament took place.

188 2017 MANAGEMENT REPORT 11. FINANCIAL 189 A. General and Administrative – Correspond to general expenses related to property 11.6 OPERATING EXPENDITURES management, utilities and general services provided by supporting departments; B. Legal entity/Contractor professional services – Correspond to expenses related to professional services, such as the following: accounting consultancy services, audits, consultancies, legal fees and services and information technology services, besides other This expense group relates to disbursements necessary for keeping administrative expert service providers; personnel (“backoffice”) who are in charge of ensuring CBF’s operations. All expenses not directly related with football were taken into account under this budget line. C. Marketing and activations – Correspond mostly to activation-related expenses, operations, intermediation and general expenses related to national team and Operating expenses incurred totalled R$ 183,566 million in 2017. When compared with competition-related marketing and advertising activities. 2016, we can see that these expenses remained practically stable with a R$ 8,473 million or 4% negative variance, in spite of accumulated inflation rates of 2,95% in the period, 3) Taxes and levies disclosed above relate specifically to taxes resulting from the showing how the organization kept its operating efforts up and running. organization’s operating expenses, such as IPTU and IPVA, among others. The decline in this expense group concerns INSS-related lawsuits.

# OPERATING EXPENSES 2016 2016 1 WITH PERSONNEL 55,636 61,137 2 ADMINISTRATIVE 119,171 118,880 3 TAXES AND LEVIES 17,233 3,549 11.7 TAXES TOTAL 192,039 183,566 In compliance with the applicable legislation, the Brazilian Football Confederation is Source: Financial Department – sums in thousands of Reais. subject to collection of a wide host of taxes and levies, such as the Legal Entity Income Tax (IRPJ), Social Contribution on Net Income (CSLL) and Contribution to Social Security Funding (COFINS), among other taxes and levies inherent to CBF’s scope of operations. This also takes place due to the fact that the organization does not use public funds of any 1) Encompassing both taxes as well as related benefits, the “Personnel Expense” group kind whatsoever, as aforementioned. showed for a 10% increase in comparison with 2016. This percentage is a direct result of collective labour disputes. It is important to point out that expenses relating to the National Adding up all taxes and levies, CBF contributed with R$ 93,389 to public coffers throughout Teams department and supporting bodies and departments personnel for CBF’s main the 2017 fiscal year. activities are left out of this budget line, since they were included in the “Football-related Costs” group. # GROUP 2016 2017 2) Administrative expenses recorded a cut and are comprised of the groups submitted below: 1 INCOME TAX 20,790 23,454 2 SOCIAL CONTRIBUTION 7,493 8,545 3 OPERATIONAL TAXES AND LEVIES 17,233 3,549 4 COFINS 34,558 32,831 # ADMINISTRATIVE EXPENSES 2016 2017 5 SOCIAL CHARGES 23,780 25,010 A GENERAL AND ADMINISTRATIVE 53,461 46,404 TOTAL 103,854 93,389 B LEGAL ENTITY/CONTRACTOR PROFESSIONAL SERVICES 32,516 35,455

C MARKETING AND ACTIVATIONS 33,194 37,021 Source: Financial Department – sums in thousands of Reais. TOTAL 119,171 118,880 Tax and levy-related expenses registered a slight fall when comparing 2017 and 2016. We found a 10% negative variance, resulting mostly from occasional INSS-related lawsuits, Source: Financial Department – sums in thousands of Reais. as aforementioned.

190 2017 MANAGEMENT REPORT 11. FINANCIAL 191 11.8 COST AND EXPENSE FORECAST

In regards to cost and expense and additionally, reviewing supplier Although revenues fell 9% due to Nevertheless, exchange rates forecasts, the organization expects agreements and securing sponsorship aforementioned reasons, CBF also underwent overall beneficial impacts its overall expenditures to increase in partnerships. Therefore, we expect recorded a drop in its expenditures amounting to R$ 2,315 million. 2018, since there is a greater number a stabilization to take place with an when compared to 2016 (R$ 63,738 of competitions in the national teams’ increase trend in regards to football- million or 11%), particularly financial Thus, the organization’s financial schedules next season, including the related expenses and a slight decrease expenditures, which accounted for a result in 2017, a key item comprising World Cup in Russia and Copa América in operating expenditures. 84% decline. operating results, was a positive for the Women’s National Team. R$ 36,336 million operating profit in Moreover, CBF should be focusing its Consequently, in 2018 CBF expects There was also a signficant fall in comparison with a negative R$ 10,726 efforts on cutting specific operating operating results to amount to interest rates, leading to a 12% million operating result in 2016, expenses affected by introduction approximately R$ 42 million. decrease in CBF financial revenues. standing for a 439% increase. This of new management mechanisms, Moreover, the organization adopts strict variance can be explained mainly due to policies in regards to its investments. exchange rate variations.

11.9 OPERATING INCOME # GROUP 2016 2017 1 FINANCIAL EXPENDITURES -20,998 -9,407 AND NET SURPLUS 2 FINANCIAL REVENUES 49,294 43,428 3 EXCHANGE RATE VARIATIONS -39,022 2,316 TOTAL -10,727 36,337 In examining its 2017 financial year, CBF recorded a R$ 50,704 net surplus, as opposed to R$ 43,721 million verified in 2016. This posed a 14% increase.

Source: Financial Department – sums in thousands of Reais. GROUP 2016 2017 GROSS INCOME 597,678 544,472 INCOME DEDUCTIONS – COFINS -34,558 -32,831 NET INCOME 563,120 511,642 In 2017, results before tax assessment budget surplus recorded for the 2017 FOOTBALL-RELATED COSTS -288,172 -281,709 amounted to R$ 82,704 million, fiscal year, the Brazilian Football GROSS SURPLUS 274,948 229,933 signaling a 15% increase in comparison Confederation reached an accumulated with 2016, at which time figures R$ 593,758 million surplus. This OPERATING EXPENDITURES -192,039 -183,566 reached R$ 72,004 million. accumulated surplus contributes FINANCIAL RESULT -10,727 36,337 towards the organization’s soundness, OTHER REVENUES AND EXPENSES -178 0 Using all figures herein as a baseline as can be seen in-depth in the RESULT BEFORE TAX ASSESSMENT 72,004 82,704 and, lastly, the R$ 50,704 million following thread. INCOME TAX AND SOCIAL CONTRIBUTION -28,283 -31,999 FISCAL YEAR SURPLUS 43,721,107 50,704,397

Source: Financial Department – sums in thousands of Reais.

192 2017 MANAGEMENT REPORT 11. FINANCIAL 193 11.10 LIQUIDITY AND DEBT

The current liquidity ratio shows the organization’s liquidity in the short-term, whereas the Taking into account figures introduced herein, we can conclude that funds available for general liquidity ratio denotes economic liquidity in the long run. Generally speaking, ratios liquidating long-term obligations in 2017 fell 6%, although they remain at levels deemed above 1 show that there are funds available for liquidating short and long-term obligations. satisfactory. On the other hand, the current liquidity ratio shows that CBF enhanced its ability to liquidate its short-term obligations, should this be necessary.

The general debt ratio measures ratios of total assets pertaining to the company that is funded by creditors. In general terms, the higher this ratio is, the higher the amount of third party funds that are being used to generate profit. General and Current Liquidity Ratio Result – Annual Base

12 18.28 10 8 6.89 6 4 2.48 2.33 2 0

GENERAL LIQUIDITY CURRENT LIQUIDITY

2016 2017

Source: Financial Department

194 2017 MANAGEMENT REPORT 11. FINANCIAL 195 www.cbf.com.br Avenida Luís Carlos Prestes, 130 - Barra da Tijuca - Rio de Janeiro - CEP: 22.775-055