Revista de Administração Contemporânea ISSN: 1415-6555 ISSN: 1982-7849 Associação Nacional de Pós-Graduação e Pesquisa em Administração Nakamura, Wilson Toshiro; Cerqueira, Sérgio de Albuquerque The New Era of Brazilian Football and Clubs Managed as a Business Revista de Administração Contemporânea, vol. 25, no. 4, e-210055, 2021, July- Associação Nacional de Pós-Graduação e Pesquisa em Administração DOI: https://doi.org/10.1590/1982-7849rac2021210055.en Available in: https://www.redalyc.org/articulo.oa?id=84066596008 How to cite Complete issue Scientific Information System Redalyc More information about this article Network of Scientific Journals from Latin America and the Caribbean, Spain and Journal's webpage in redalyc.org Portugal Project academic non-profit, developed under the open access initiative Revista de Administração Contemporânea Journal of Contemporary Administration e-ISSN: 1982-7849 Executive Letter The New Era of Brazilian Football and Clubs Managed as a Business A Nova Era do Futebol Brasileiro e Clubes Geridos como Negócio Wilson Toshiro Nakamura1 Sérgio de Albuquerque Cerqueira2 1 Statutory Director and Board Member of Sociedade Esportiva Palmeiras, São Paulo, SP, Brazil 2 Former Chairman of the Fiscal Council and former Director of the Botafogo de Futebol e Regatas, Rio de Janeiro, RJ, Brazil Football is a national passion. Everyone in Brazil and adopting some of the best practices observed in the has heard this phrase at some time. And it expresses an corporate world. This happened mainly in countries like irreproachable truth. Indeed, if there is a genuinely England, Germany, Spain, France, Italy, and Portugal, just popular sport in the largest country in Latin America that to name a few European cases. at the same time attracts the interest of people from all social classes, it is football. Especially men like football Many of these clubs were conceived as companies and often say they are passionate about their clubs, but many decades ago, especially in England, but, in addition, there is a clear growth in the number of women who have they have modernized a lot in recent times, while others become interested in the sport and go to the stadiums. made the change from club in an associative model to Soccer in Brazil is recognized worldwide for the club in a business model in most recent periods. Bayern refined technique of its athletes. Many Brazilian players Munich, for example, was a club based on the associative stood out in the global context, including Pelé, mainly, model (non-profit) and became a company in 1992, this but also Garrincha, Rivelino, Ronaldinho (Ronaldo passage being well described and discussed in several Fenômeno), Ronaldinho Gaúcho, Kaká, Romário, Neymar, specialized publications. In England, clubs in general, among a multitude of great athletes who left, or still leave, participating in the Premier League, are companies and their identity as legendary athletes and of extraordinary some of them have started to attract fans and supporters value. globally. That is, they became international. However, But, especially in the 21st century, we have we also have the case of Real Madrid and FC Barcelona, experienced a major transformation in the global football which are clubs in the associative model, but, as a matter industry, in which, in major football centers, many of fact, they are managed as if they were companies, in clubs have been managed with much more competence addition to having a high standard of governance. Cite as: Nakamura, W. T., & Cerqueira, S. de A. (2021). The new era of Brazilian football and Executive Letter received after invitation from the Editor-in-chief: clubs managed as a business. Revista de Administração Contemporânea, 25(4), e210055. Wesley Mendes-Da-Silva (Fundação Getulio Vargas, EAESP, Brazil) https://doi.org/10.1590/1982-7849rac2021210055.en [email protected] Revista de Administração Contemporânea, v. 25, n. 4, e-210055, 2021 | doi.org/10.1590/1982-7849rac2021210055.en| e-ISSN 1982-7849 | rac.anpad.org.br 1 The New Era of Brazilian Football and Clubs Managed as a Business W. T. Nakamura, S. de A. Cerqueira It is worth considering that, in the context of South people in different places to have access, with flexibility and America, in some countries there are clubs, among the autonomy, to innumerable football matches that are held main ones, structured as companies, such as Chile, Peru, around the world. and Colombia, while in Argentina a model similar to the It is interesting to understand the logic of football Brazilian one prevails, especially when we refer to River clubs in Brazil. They usually have a social headquarters Plate and Boca Juniors, the most prominent clubs in this and physical facilities, which allows the practice of sports country. and recreational and social activities by their members. It In Brazil, although there has been a great evolution is precisely in the ambit of the associates that the directors in management practices, especially in the last five to ten emerge, who are elected periodically (every four years, years, there is undoubtedly still a long way to go before for example), although many of them may have reached we can achieve an economic status more comparable to the the status of lifetime directors, which gives them the biggest centers of world football. In addition, none of the right to remain as directors indefinitely, without the need most important clubs is structured, from a legal point of for reelection. Club directors are part of the so-called view, as a company. They are all clubs in the associative, deliberative council, the club’s highest decision-making non-profit model. body, although some issues have to be put to a vote in a member assembly, which would function as a direct voting This stage of evolution, which football goes through mechanism for some matters considered most relevant. globally, and Brazil in particular, opens a window of opportunity for many new academic researches to be carried The activities of professional football and out in the context of this industry, which is consolidating development of new athletes, in turn, are administered in itself and gaining more and more relevance in the economic a structure independent of the other activities of the club. context, with research in the field of sports marketing, but They are 100% professionalized, involving professionals in also in other areas such as: finance in sports, management the areas of sports science, physical, medical, physiotherapy, of stadiums and major events, strategies in the sports field, physiology, logistics, press and communication, etc. Usually, internationalization, leadership and people management in all these activities are led by a manager responsible for all sports entities, etc. professional football activities and, often, also involving the training of new athletes. This manager can be someone who According to the Brazilian Football Impact report, exercises the position voluntarily, without remuneration, or published by EY of Brazil with data from 2018, the by someone remunerated and hired in the market. production chain of Brazilian football has a 0.72% share in the Brazilian GDP (Confederação Brasileira de Futebol Clubs generate revenue through different sources, [CBF], 2019). Also according to this report, Brazilian but mainly related to professional football activities. The football generated R$ 52.9 billion in 2018 as well as main sources are: broadcasting rights for games in different generated approximately 156,000 jobs (CBF, 2019). We championships, match day income, partner-fan program, have, in Brazil, more than 7,000 clubs (of which only sponsorship, and sale of athletes. The relative importance 874 are active professional clubs) and more than 360,000 of each source varies from club to club, but in general, registered athletes. These are significant numbers, but they broadcasting rights are still the main source of revenue. have great potential to be improved, especially in terms of Here in Brazil, the main clubs participate in the Brazilian the participation of the football industry in the country’s Championship, the Brazilian Cup, and the state or regional GDP, which could triple, according to a statement by championships. The first two are organized by CBF — Rogério Caboclo, current president of CBF — Brazilian Brazilian Football Confederation. In addition, some clubs Football Confederation. are eligible to participate in two international tournaments: Libertadores and Sudamericana, both organized by A significant fact that deserves to be highlighted is CONMEBOL — South American Football Confederation. the digital transformation that has gone through several industries in the market and that is also arriving in the world Whenever hosting matches the clubs generate of football. The digital tools, as well as the communication income, bearing a high cost for the operation of the event. and relationship possibilities that can be explored on social Therefore, in general, there is a minimum number of networks, are a world of endless opportunities, which are audiences below which clubs generate losses. Most clubs’ certainly already competently being used by some of the partner-supporter programs are mainly geared toward main clubs in Europe, such as FC Barcelona, Liverpool, the advance sale of tickets and priority in purchasing by and Manchester United, just to name a few. Above all, a members in matches in high demand. Therefore, it is clearer scenario of the use of streaming is being revealed customary to consolidate the matchday income with the in the broadcasting of sporting events, which will give the revenues of the partner-supporter program as if it were a internet a much more relevant role in terms of allowing more single source. Revista de Administração Contemporânea, v. 25, n. 4, e-210055, 2021 | doi.org/10.1590/1982-7849rac2021210055.en| e-ISSN 1982-7849 | rac.anpad.org.br 2 The New Era of Brazilian Football and Clubs Managed as a Business W.