February 26 – With mounting debts, Brazilian club Vasco da Gama has taken steps to protect itself from bankruptcy.
The Rio de Janeiro club has planned measures as part of a financial restructuring, demanding protection via judicial recovery for both the club and SAF. The board of directors guaranteed that investments in football will continue, as well as the payment of salaries on time and other obligations.
In a statement, the club said: “After successfully completing the mediation stage, it is time for the institution to move on to the next phase. Judicial recovery is essential at this time, as it reinforces Vasco da Gama’s commitment to the present and future.”
“The restructuring, which began in June 2024, aims to effectively restore the financial health of the Club and SAF.”
Vasco have a debt of around R$1.4 billion ($343 million) according to a study by Alvarez & Marsal. In 2021, the club had already joined the Centralized Execution Regime (RCE) to pay labour and civil debts, which totalled approximately R$223 million ($38.5 million). Under the regime, a fifth of the club’s revenues is allocated to paying creditors. Via a judicial path, Vasco da Gama would have greater control over debt negotiations and renegotiation with creditors.
The club said: “Difficult decisions, even when bitter and unpopular, do not diminish the conviction and determination of the current administration to face this challenge in a firm and responsible manner. Either we face reality, or we run the risk of continuing to repeat the same mistakes of the past.”
In 2022, 777 Partners acquired the Brazilian club, but the American investment group lost control of the club last summer because of financial mismanagement, resulting in a collapse of its model of multiple club ownership.
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