By Andrea Caropreso
Index
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The current Club World Cup has highlighted a reality that many believed to be inferior to the top European leagues: South American clubs can hold their own in knockout matches. Brazilian clubs, in fact, reached at least the quarter-finals thanks to the successes of Palmeiras and Fluminense — the latter even eliminating Inter, fresh off a Champions League final. But how far apart are, for example, the Brazilian and Italian leagues? Any analysis must inevitably consider economic factors.
The Brazilian Football System
The first step is to understand the Brazilian football system. Due to the size of the country, Brazil has two main competitions. The first is the state championship, which begins in late January and runs until April. These tournaments are restricted to local areas. The most famous are the Carioca, where Fluminense plays, and the Paulista, with Corinthians holding the record for most wins. Then there’s the historic Brasileirão, the national league played from May to December.
While the Brasileirão crowns the national champion, the state tournaments are vital revenue sources for smaller clubs. Overall, this dual-competition system has both pros and cons for Brazilian clubs. On the one hand, a saturated calendar — clubs play even more matches than Serie A teams in Italy — and on the other, greater visibility, more ticket sales, and essential income for survival.
The Impact on Finances: The Palmeiras Case
In 2023, Palmeiras became a symbol of the business and sustainability model for South American (specifically Brazilian) clubs. Thanks to strategic monetization from the Brasileirão, international competitions (Copa Libertadores), and player sales (mainly to Europe), Palmeiras ended the year with revenues of €155 million — second only to São Paulo and Flamengo.
Palmeiras 2023 Financial Report
| Item | Value (€M) | % of Revenue |
|---|---|---|
| Total revenue | €167.8 | 100% |
| Player sales | €37.4 | 22% |
| TV rights (total) | €36.6 | 22% |
| → of which Brasileirão | €20.0 | 12% |
| Sponsorship / Marketing | €25.4 | 15% |
| Competition prizes | €16.0 | 10% |
| Matchday ticketing | €12.6 | 7% |
| Memberships | €11.8 | 7% |
| Licensing / Brand | €7.2 | 4% |
| Operating surplus | €12.4 | 7% |
These numbers reveal the true impact of certain revenue streams — like player sales (mostly to Europe) — while in the European and Italian models, this plays a smaller role compared to income from UEFA competitions, TV rights, and domestic leagues. Comparing just the national league income reveals a clear gap between Brasileirão and Serie A.
Domestic League Revenues: Serie A vs Brasileirão Clubs (2022–2024)
| Club | Country | League | Est. Annual Revenue (€M) | % of Total Revenue |
|---|---|---|---|---|
| Inter | Italy | Serie A | 180 | 48% |
| Milan | Italy | Serie A | 175 | 45% |
| Roma | Italy | Serie A | 140 | 55% |
| Napoli | Italy | Serie A | 130 | 55% |
| Juventus | Italy | Serie A | 125 | 55% |
| Palmeiras | Brazil | Brasileirão | 85 | 50% |
| Flamengo | Brazil | Brasileirão | 105 | 45% |
| Botafogo | Brazil | Brasileirão | 65 | 38% |
Milan, for instance, though second only to Inter, has a revenue share from Serie A similar to Flamengo — the top-earning South American club in the period analyzed.
This highlights not only the revenue gap between the two systems but also that, despite having two domestic competitions, the Brasileirão contributes far less to club finances than Serie A does for Italian teams. However, another key difference is that Italian clubs rely much more on UEFA competitions (especially the Champions League) than Brazilian clubs do on CONMEBOL competitions (e.g., Copa Libertadores).
UEFA vs CONMEBOL Competitions: A Comparison
UEFA tournaments are a major source of income for top Italian clubs — much more than CONMEBOL competitions are for South American clubs. For instance, Inter, last season’s Champions League finalist, earned over €100 million from UEFA (participation, wins, knockout rounds, market pool, etc.).
In contrast, Botafogo — the last Copa Libertadores winner — earned just €30 million for winning the trophy. In percentage terms, international competitions account for about 10% of Brazilian clubs’ revenues, versus up to 40% for Italian clubs.
Final Thoughts
Brazilian football generates excitement, matches, and income through its numerous national and international competitions. But it struggles with financial stability, apart from a few exceptions. Serie A, with fewer competitions but a stronger and more stable structure, produces more consistent revenues — though heavily reliant on UEFA. Two different models with a shared challenge: making football economically sustainable in a globally competitive era.
