As a result of extremely inefficient management over the past 2 decades, most of Brazil’s biggest clubs  are currently suffering from enormous debts that don’t seem to go away. When combining the three clubs with the highest debt (Flamengo, Botafogo and Fluminense) we get an astonishing figure of over 760 million dollars owed to the Brazilian Government. Although the economic boom of Brazil in the past five years has brought some beneficial investment into the major clubs in forms of advertisement and TV rights, it is not enough to fulfill the current hole in the clubs accounts. The new managements of the clubs through the use of the new football stadiums built for the 2014 world cup are attempting to create a new source of income into the club, customer loyalty.

The new arenas built for next years event provide the opportunity for the clubs to invest into building customer relations and developing membership programs. Since the new stadiums provide more comfort and recreational options to the public, the clubs are attempting to build the relationship between club and fan as a way of increasing their income.

What interest me the most about this situation in Brazil was the way in which the clubs are trying to encourage fans to become members.

In the upcoming game for the Brazilian cup final between Flamengo x Atletico-PR, the minimum price a customer will be able to pay is about U$ 105 which for the Brazilian society is extremely high, considering that it represents about 1/3 of the minimum wage. However, fans with memberships with the club, that are up to date with their monthly payments will be given the opportunity to pay U$ 32 for their tickets.

Although at first glance this may seem like a bad call for the clubs (since they are not gaining as much per match if the number of members grow), the fact that in order to be a member you must pay monthly fees, the club will be able to create a stable source of income and decrease the horrendous debt they currently have.

Source Pic: http://www.caughtoffside.com/2011/11/14/gremio-2-2-palmeiras-campeonato-brasileiro-highlights-video/