By: Vitor Ferrari and Ivan Kubala

The biggest football team in the State of Santa Catarina, Avaí Futebol Clube has been facing a complicated situation regarding its accounts for years: the club's debts and indebtedness are extremely high. As a result, the club filed for judicial recovery in 2023, the year of its centenary, in order to avoid liquidation of the club and allow it to continue in operation.

According to the press, Avaí has accumulated debts of around R$107 million, which makes its financial situation unsustainable and will worsen further with the incidence of interest and corrections. With the judicial recovery, the club can negotiate with its creditors and propose a financial restructuring plan to pay off its debts without wasting the club's assets.

According to leaders and directors, Avaí focused on its financial restructuring, seeking to balance revenues and expenses without taking on new debts. Another factor that marked the board's performance was a plan for paying salaries, especially for players, so that there would be no delays.

However, the incidence of interest keeps the club's debt at high and increasing levels. Given the impossibility of reducing its total liabilities, the club saw no other possibility than filing for judicial recovery..

Among the measures adopted by Avaí are the renegotiation of contracts with suppliers and the sale of athletes to generate revenue, reduce the payroll and reduce debts. In addition, the club began to adopt a serious austerity policy, with cost reductions and contract revisions.

If the judicial recovery is granted, the club will have a period of immunity against executions of credits included in the judicial recovery process for 180 days, extendable once for the same period; in addition to being required to present a detailed plan to its creditors, in which it will explain how it plans to pay the credits.

However, the club's situation is far from being resolved. Only debts included in the judicial recovery process are immune from execution.. That is, new debts incurred by the club do not enjoy immunity and can be immediately collected.

Therefore, Avaí must continue with austerity measures and seek new sources of revenue in order to maintain its financial stability and continue competing at a high level. The judicial recovery of Avaí Futebol Clube is an example of how this measure is essential for the survival of companies in difficulty and for the preservation of jobs, economic activities and tax collection.

With the collaboration of Luís Felipe Simão