When he met with President Romildo Bolzan in February to discuss his future, Renato Portaluppi took a few minutes to arrange (one more) renovation with Grêmio. The conversation between the agent and the coach is a ceremony that marks the end of every Grêmio season since 2016.
However, the coach with the longest tenure in Brazil somewhat prolonged the discussion, with a request in the form of a requirement to remain in the club. It would be necessary to open the safe and invest more to form a team capable of competing for titles in 2021.
++ Without Borré, Grêmio has Soteldo and Douglas Costa on the radar
ONE Renato’s request is the starting point for a change of attitude Grêmio in the market looking for reinforcements for the season. Gremista’s board has started high ambition and face big names. The club wants two to four pieces at the level of undisputed ownership.
And that explains why the fan came to see the abundance of news from one Tricolor willing to open the safe to pick up carat players Rafael Borré, Soteldo, Claudinho, Douglas Costa…
President Romildo Bolzan Júnior and coach Renato Portaluppi – Photo: Lucas Uebel / Grêmio
We are in the market and we are going to strengthen the group. We ask for a little patience. One of the president’s promises when I renewed was that he would hire. And he will hire
– Renato Portaluppi
So far, the club has only announced right-handed Rafinha and midfielder Thiago Santos as reinforcements. The “heavier” negotiations are frozen until the vacancy is set at the Libertadores stage.
But the values treated show a change in posture. In 2020, Renato asked Keno and Pedro on the board, which did not address the financial issue. In 2021, Tricolor is offering much higher amounts than it will pay for the two targets from last year.
Tricolor offered $ 6 million (US $ 34.54 million) and $ 2 million (US $ 11.51 million) in gloves for Borré, in a bid that has so far been unsuccessful. For Soteldo, the amount payable would be US $ 5 million (R $ 28.54 million) for 50% of the rights.
Renato’s request made Grêmio accept the opening of the aid funds. But it would be useless for the idol to set foot on a stronger team if these funds were shaved. And there is another key point to Gremista’s bold stance: up-to-date accounts and financial stability.
If the coach started with a more ambitious project this season, the financial restructuring in the years of Romildo Bolzan’s management is what allows the club to increase its investments in 2021. Grêmio comes from successive seasons with surplus and increased revenue.
The club ended in 2020 with a surplus of $ 38 million, even under the effects of the coronavirus pandemic. This is due to an emergency plan launched by the board last April.
And it has been so since 2015, the last year that Tricolor closed in red. Since then, there have been five consecutive years of surplus. And the fans even joke, with a tone of demand, that they are “tired” of celebrating good numbers and not having to return to the registrations.
Financial results from year to year (in millions of reais)
Especially because the values that the club acquires through sales are much higher than the investments. From 2016 to 2017, Grêmio more than doubled its trading revenue. The club has exceeded R $ 100 million in the last three seasons and has already won every R $ 85 million in 2021.
Renato went so far as to say that Gremio earned $ 1 billion in sales since his arrival. Not so, but the number is high: 522 million R in total. (check below).
How much Grêmio was collected from sales each year:
- 2021 *: R $ 85 million (approximate number so far)
- 2020: 100,517,000 R $
- 2019: 107,821,000 R $
- 2018: 134,268,000 R $
- 2017: 76,796,000 R $
- 2016: 17,902,000 R $
Source: financial statements of the club
Not for nothing, the club’s revenue also increased. The latest financial statement published by Grêmio shows that the club has evolved into the amounts collected all the years since 2015. The exception is due in 2020, but there is a reason for that.
The last season continued until 2021 with Brasileirão games played in February and the Copa do Brasil final in March. Thus, Tricolor received Rs 53.9 million from R $ 117.5 million of television rights in 2021.
Otherwise, the club will be enrolled for the first time in its history with revenues of over $ 500 million in a single year. As this number was for 2021, there was a decrease in revenue compared to 2019.
Grêmio gross revenue (in millions of reais)
Over the years, Grêmio has invested, honestly. He paid 2.5 million euros (10 million R $ then) to hire André do Sport in 2018. In the same year, he spent 9.5 million Rs to hire Marinho. And in 2019, he looked for Diego Tardelli with a maturity of close to $ 1 million.
Significant values, but far from the numbers the club deals with and is willing to pay in 2021. And it can pay, because it used the consecutive years settle financial issues.
In 2015, Grêmio had a total bank debt of $ 85 million, of which $ 69 million was short-term. Five years later, the club reduced this percentage by 91.7%. The rest of 2020 amounts to R $ 7 million in debt, of which R $ 3 million in the short term.
Grêmio closed 2020 with more cash – R $ 10 million – than debt owed on bank loans. It was the first time this had happened in the last six years.
This whole scenario allows Tricolor to target the transport market high, eager to open its portfolio. But right now, the club is leaving all the treatments in a double boiler. First, you have to go through the Independiente del Valle and proceed to the Libertadores Stadium.