Corinthians on the brink: board reveals cash crisis risk | OneFootball

Corinthians’ financial tumult has intensified, with the club’s interim president, Osmar Stabile, openly acknowledging what he calls a “scorched earth” scenario when it comes to cash reserves. Tasked with leading the club after Augusto Melo’s suspension, Stabile revealed that Corinthians are currently without immediate funds and face more than R$30 million in urgent liabilities.

The priorities for the new leadership are clear: settle outstanding payments earmarked for Profut—the federal debt restructuring program—resolve contractual termination fees for former coach Ramón Díaz and his staff, and keep up with wage commitments to players and staff. According to Stabile, “We’re being told the finances were in order, with money available, but that’s not true. Our situation is delicate, and our commitments are significant.”

The club is on the verge of reaching its third consecutive month of Profut delinquency. Falling behind on these federally mandated payments could risk stricter short-term penalties, including possible barriers to competition eligibility.

The immediate financial outlook remains bleak. When Melo was sidelined by the Conselho Deliberativo following compliance controversies and sponsor-related investigations, he left a reported R$5 million in the club’s accounts, starkly insufficient to cover the present obligations. Stabile, who is set to lead for at least two months, is scrambling to secure new revenue streams to stave off further financial strain.

Contributing to the pressure are unsettled debts relating to past player transfers and a cumulative first-team payroll now totaling roughly R$22.5 million per month. The search for financial solutions is in full swing. Notably, former club finance director Rozallah Santoro has been tapped to assist with the transition, though club statutes prevent him from taking on an official position so soon after stepping down under Melo’s leadership.

This latest leadership transition and its financial revelations come as Corinthians already face heightened scrutiny. The club is contending with a fresh investigation into suspicious sponsorship dealings involving multi-million real transfers and questions about compliance with regulatory requirements. Legal and political uncertainties further cloud any path to financial stability.

As the board attempts to chart a course through these challenges, the immediate focus will be on stopping a fiscal slide from spiraling out of control—settling vital debts and restoring some semblance of trust with players, supporters, and external stakeholders. For one of Brazil’s biggest clubs, a prolonged cash crunch carries risk both on and off the pitch, with the gap between urgent liabilities and available resources as stark as it has been in recent memory.

Source: Globo