Football Business : Brazilian Football Confederation to provide $23.8Mn credit line to clubs

Football,Football Business,Brazilian Football Confederation,Brazilian Football,2023 Womens World Cup,FIFA Women's World Cup 2023

The Brazilian Football Confederation has set up a $23.8Mn relief fund to help top-flight clubs mitigate the financial impact of the COVID-19 pandemic.

Clubs in Brazil’s second tier have been allocated $3.5Mn, the governing body added in a statement.

Football has been suspended since March due to the pandemic and clubs have struggled to cope with the loss of matchday revenue and ticket sales.

Also Read: Indian Football: Online sessions helped players maintain fitness says Thomas Dennerby

The CBF had previously allocated $4m to clubs in Brazil’s third and fourth tiers, as well as the top two divisions of the women’s league.

The funds will be granted on the basis they are guaranteed through the revenue clubs are due for broadcast rights and performance awards in the competitions they compete in.

The advance is designed as a means to compensate part of the loss of revenue that the clubs have suffered with the reduction of the amounts paid for broadcast rights in the quarter from April to June, in addition to other sources of revenue such as ticket sales, fan membership programmes and sponsorship deals.

Brazil also withdraw bid to host 2023 Women World Cup

The Brazilian Football Confederation has withdrawn its bid to host the 2023 Womens World Cup due to not being able to offer FIFA the financial assurances it needs because of the impact of the coronavirus pandemic .

“After a thorough evaluation, the Brazilian Football Confederation (CBF) decided to withdraw Brazil”s candidacy to host the FIFA Women”s World Cup 2023. A combination of factors led to this decision, taken with great responsibility,” a statement on Brazilian Football Confederation”s official website said.

“FIFA”s analysis of the documentation of the Brazilian candidacy considered that the Federal Government guarantees and documents from third parties, public and private, involved in the event were not presented.

“CBF understands the need for FIFA to obtain such guarantees and knows that they are part of the standard protocol of the international entity, being a fundamental element to provide the necessary security for the realization of events of this size.

“The Federal Government, for its part, prepared a letter of institutional support for FIFA in which it guaranteed that the country is absolutely able to receive the event from a structural point of view, as it has done in previous situations.

“However, he stressed that, due to the economic and fiscal austerity scenario, fueled by the impacts of the Covid-19 pandemic, it would not be advisable, at this moment, to sign the guarantees requested by FIFA,” the statement, on, read.

“In view of the exceptional moment experienced by the country and the world, CBF understands the cautious position of the Brazilian Government, and of other public and private partners, which prevented them from formalizing the commitments within the time or in the required manner,” it further read.

The Brazilian Football Confederation also said it will support Colombia”s bid against Japan and the joint candidacy of Australia and New Zealand. South America has never hosted the competition.

“Therefore, CBF decided to withdraw the Brazilian candidacy and support Colombia in the dispute for the host of the FIFA Women”s World Cup 2023. In this way, CONMEBOL presents itself with a unique candidacy, increasing the South American chances in the vote, in addition to reinforce the unit that marks the entity”s current management.”

Brazil is the hardest hit by COVID-19 pandemic in Latin America, with more than 37,000 confirmed deaths.

Also Read: Football Business : Kylian Mbappe commands the world’s highest transfer value says CIES Football…