Amid mounting financial pressures, Brazilian football giant Corinthians is negotiating with Liga Forte União (LFU) to secure a critical cash injection totaling R$ 57 million (approximately USD $10.5 million) to stabilize its finances. The funds, if secured, would be used to meet pressing obligations such as unpaid player salaries, staff wages, bonuses, supplier contracts, and potentially to fund player transfers for the men’s first team.
The breakdown of the proposed R$ 57 million (~USD $10.5 million) package includes two components:
- R$ 27 million (~USD $5 million) as an advance on variable performance-related revenues tied to the club’s final standings in the 2025 Brazilian Championship. These funds are expected to be disbursed by December.
- R$ 30 million (~USD $5.5 million) as a loan subject to the CDI interest rate, currently at 14.9% per year, plus an additional 3%—effectively pushing the borrowing cost above 17%.
To secure the R$ 30 million loan, LFU is requiring Corinthians to extend their current league contract by an additional year—from 2029 to 2030. Although the interim club leadership finds this term unfavorable, they have proposed a conditional “exit clause.” Under this clause, if Corinthians repays the loan in full with interest, the club would not be bound by the extended contract term.
Interim President Osmar Stabile, who took over following the exit of former president Augusto Melo, would be making this strategic financial decision, which could potentially be reversed by his administration or by a future leadership change.
The Corinthians Guidance Council (CORI) has already authorized the R$ 30 million loan. In contrast, the R$ 27 million advance does not require internal approval, as it falls within the club’s approved 2025 budget and incurs no interest or additional fees.
In addition to the LFU deal, the club is anticipating another significant cash boost from its apparel sponsor. Nike is expected to pay R$ 50 million (~USD $9.2 million) in August as part of a “signing bonus” for renewing its equipment supply contract. An additional R$ 50 million (~USD $9.2 million) will be paid in two installments in 2026.
However, despite these inflows, Corinthians still faces severe liquidity challenges through the end of the year. Club leadership projects a need to raise at least R$ 100 million (~USD $18.4 million) through player sales in the current transfer window to balance the books.
“We took over Corinthians without any cash flow for May, June, and July,” said President Stabile during a press conference. “What little revenue we had for January and February was already spent, and none of it reached the football department. The real issue has been managing cash flow—the bulk of our revenue arrives at the beginning and end of the year, but we’re left scrambling in the middle.”
He continued: “We’ve already received 40% of what we’re due from the League. But what about the months in between? That’s where the gap lies. We’re chasing money when we should be planning ahead.”
The current financial difficulties aren’t new. In 2023, Corinthians secured a R$ 150 million (~USD $27.6 million) loan from LFU under similar CDI + 3% terms. Following the leadership change in May 2025, the club also advanced R$ 22 million (~USD $4 million) from its existing LFU contract to keep operations running.
Looking at the broader picture, Corinthians is expected to receive a total of R$ 210 million (~USD $38.6 million) this season from broadcast rights related to the Brasileirão. Approximately R$ 100 million (~USD $18.4 million) of that amount has already been received, offering limited relief against the club’s substantial obligations.
With time running out and financial commitments stacking up, the success of the negotiations with LFU—and Corinthians’ ability to offload high-value players—may determine whether the club ends 2025 solvent or slips further into financial turmoil. For a team that commands a massive fan base and rich history, this financial crossroads could shape the trajectory of its future both on and off the pitch.
