management report · ‘brazil cup’ (‘copa do brasil’) grew an astounding 148% and, moreover,...

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After a busy and energetic season filled with thrilling matches in our tournaments and important achievements made by the Brazilian National Teams, the Brazilian Football Confederation (CBF) hereby presents this Annual Management Report, whereby it describes its main achievements in the term spanning between 1 January and 31 December 2017.

In addition to fulfilling its statutory duties and attributions in helping to support and organize football in the country, the organization has been carrying out efforts aimed at enhancing the key principles set forth under its current management in regards to enforcing efficiency and transparency in its activities. This report is proof of this commitment towards its target audience and other stakeholders concerning enterprises and projects undertaken during the aforementioned term.

Encompassing CBF’s wide range of activities, in addition to describing supporting, strategic and, particularly, its key activities, the purpose of this publication is also to introduce the complexity of operations within a confederation that is in charge of fostering and coordinating football in a country with continental proportions, in which it spearheads 27 state federations, in addition to 720 professional teams and thousands of other amateur football organizations. It is worth noting that the results mentioned herein are a result of the hard and continuous work carried out by the organization’s entire collaborating staff as well as by the heads of departments. Nevertheless, and above all, said achievements are driven and undoubtedly inspired by the enthusiasm and interest of spectators and fans of this amazing sport that stirs so much passion both in Brazil and abroad.

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1. MESSAGES BY CBF 061.1 President 1.2 Secretary General 1.3 Executive Director

2. INSTITUTIONAL 102.1 Administrative Headquarters and Events 2.2 CBF Academy 2.3 Granja Comary 2.4 Musem of the “Brazilian National Team”

3. NATIONAL TEAMS 383.1 National Team Main Statistics3.2 Main Men’s National Team 3.3 Main Women’s National Team3.4 Youth Ranks

4. REGISTRATION, TRANSFER 54 AND LICENSING 4.1 Player Agreements4.2 Agreements per Age Group4.3 Agreements per Gender 4.4 Coach Agreements 4.5 Transfers 4.6 Intermediaries 4.7 Club Licensing4.8 Retirement Certificate

5. COMPETITIONS 705.1 Projects

6. REFEREEING 906.1 Projects

7. MARKETING AND COMMUNICATIONS 1107.1 Marketing 7.2 360º CBF Sponsor Program7.2.1 Sponsor Reunion7.2.2 Sponsor Match7.2.3 Partnership Development (statistics) 7.2.4 Current Framework 7.3 Projects 7.3.1 “Giants by Nature” Program 7.3.2 Canarinho (Brazilian Team) Mascot 7.3.3 National Team Official Products Licensing Program

7.3.4 We are Football – Brazilian Football Evolution Week 7.3.5 2017 e-Brasileirão Marketing7.4 Communications 7.4.1 National Team Statistics 7.4.2 Social Media7.4.3 Live Broadcasts 7.4.4 Radio 7.4.5 Press Office

8. INNOVATIONS AND TECHNOLOGY 1328.1 Intranet 8.2 CBF Academy 8.3 Referee Portal 8.4 Referee News Website8.4 Refereeing Evaluation

9. SOCIAL AND ENVIRONMENTAL 1409.1 Brazil Goal Program9.2 Future National Teams Program9.3 National Team in My City9.4 CBF Social at the ‘Green Cup’ (‘Copa Verde’) 9.5 Events

10. GOVERNANCE AND COMPLIANCE 15810.1 Governance 10.2 Compliance 10.3 Conclusion

11. FINANCIAL 17411.1 Assets11.2 Revenues 11.2.1 Operating Revenue11.2.2 Financial Revenues11.3 Revenue Forecast 11.4 Total Expenditure11.5 Direct Football-related Costs11.5.1 Brazil National Team-related Costs11.5.2 Competition-related Costs11.5.3 Football Development Costs 11.6 Operating Expenditures11.7 Taxes11.8 Cost and Expense Forecast11.9 Operating Income and Net Surplus11.10 Organization Liquidity and Debt

Antônio Carlos Nunes de LimaPRESIDENT

Fernando José Macieira SarneyGustavo Dantas FeijóMarcus Antônio Vicente VICE PRESIDENTS

Walter FeldmanSECRETARY GENERAL

Rogério CabocloEXECUTIVE DIRECTOR

Carlos Eugenio LopesLEGAL DIRECTOR

HEADS OF DEPARTMENTS

Manoel Medeiros Flores JúniorCOMPETITIONS DEPARTMENT

Reynaldo Buzzoni de Oliveira NetoREGISTRATION, TRANSFER AND LICENSING DEPARTMENT

Gilberto Ratto Ferreira LeiteMARKETING DEPARTMENT

Douglas LunardiCOMMUNICATIONS DEPARTMENT

André Luiz Pitta PiresCOORDINATIONS DEPARTMENT - SÉRIE D (FOURTH DIVISION)

Gustavo Henrique Perrella Amaral CostaDEVELOPMENT AND PROJECTS DEPARTMENT

Marcelo Guilherme de Aro FerreiraINSTITUTIONAL RELATIONS DEPARTMENT

Oswaldo Antonio Elias GentilleHERITAGE DEPARTMENT

Vandenbergue dos Santos Sobreira MachadoLEGISLATIVE CONSULTANCY DEPARTMENT

Fernando FrançaINFORMATION TECHNOLOGY DEPARTMENT

Gilnei BotrelFINANCIAL DEPARTMENT

André dos Santos MegaleGOVERNANCE AND COMPLIANCE DEPARTMENT

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06 2017 MANAGEMENT REPORT 071. MESSAGES BY CBF

The Brazilian Football Confederation has a great deal to show for in regards to management enhancement, financial performance, operational expansion, increased prize money offered in competitions and significant results achieved on the pitch. These accomplishments enable the Board of Directors, which I have the honor of presiding, the satisfaction of feeling that its mission has been accomplished.

In regards to management, the organization has carried out noticeable improvements. We have reached the peak of our financial and administrative success. In a challenging economic scenario, we managed to achieve a significant surplus in the 2017 balance sheet. And we achieved this through direct investments made in football, amounting to R$ 400 million. The Brazil Cup will feature a record prize money of R$ 67.3 million offered to the winning side. This comes down to CBF focusing its efforts towards its key activities.

The Brazil National Team finished the World Cup Qualifiers in first place, in addition to displaying exceptional performances in friendly matches it

played. We arrived at the World Cup in Russia fully prepared and commanding our opponents’ deepest respect. I am confident when I say that Brazilian football is one of the most competitive in the planet.

We are fully aware that we have made a lot of progress. Choosing Tite and Edu Gaspar to lead our National Team proved to be a sound decision. The Coaching Staff’s high level of commitment, skill and dedication met all expectations and is a part of CBF’s long-term plans.

Nonetheless, CBF will keep its efforts ongoing. We need to carry on in our efforts to constantly and relentlessly improve. To strive for a transparent, efficient and results-oriented management enables, in the end, the possibility to increasingly invest in Brazilian football, thereby enabling clubs to hire and retain the best players. That is our challenge. Let’s get to work!

ANTÔNIO CARLOS NUNES DE LIMAPresident

08 2017 MANAGEMENT REPORT 091. MESSAGES BY CBF

Leadership, strategic targetting, implementation planning, corporate compliance, effective performance, perseverance and a relentless search for results. Moreover, and of extreme significance, a team commitment. This is the “secret” of CBF’s performances, both inside as well as out of the pitch, which we are pleased to disclose herein.

It is definitely no overstatement to say that in these years of a profound economic crisis, we have walked our path confidently in spite of challenges posed by the global economy. Within a context of economic downturn, CBF achieved its goals, increasingly investing in national teams, competitions and supporting Federations. The organization’s surplus reached R$ 50 million, a 16% increase in 2017 when compared to 2016, a substantial result. Our financial situation is sounder than before and we are investing even more in football, while cutting back on expenses and upgrading our management.

Some figures deserve to be mentioned. Sums remitted to clubs playing in the ‘Brazil Cup’ (‘Copa do Brasil’) grew an astounding 148% and, moreover, the total investment in the competition comes close to nearly R$ 300 million.

Prize money offered to clubs reaching the finals jumped from R$ 8.8 million to R$ 67.3 million, almost eightfold. We also managed to set a new national record for Brazil National Team box office revenues, attaining a record revenue of R$ 15.1 million in a single match. In 2017, women’s football funding increased 55% in comparison to the previous year and the ‘Green Cup’ (‘Copa Verde’), one of our regional tournaments, saw its earnings increase by 65%.

Nevertheless, we want more. In 2018, we expect the organization’s total revenues to increase due to the fact that we created new revenue streams. We will also be granted FIFA and CONMEBOL financial contributions for projects which aim to foster football in the entire Brazilian territory, our biggest commitment.

Thus, results were extremely favorable in 2017 and the outlook for 2018 is very promising. We will work together to achieve, at the management scope, a level of excellence that everyone acknowledges in Brazilian football every time it enters the pitch.

ROGÉRIO CABOCLOExecutive Diretor

Brazil isn’t so much a poor, but rather a very unequal country. The CBF Social Program showcases the organization’s commitment towards the society that surrounds it. Football is a key part in Brazilians’ lives and should, as a result of the dreams it creates and paths it opens, become an important tool for social inclusion concerning underpriviledged members of its population.

One example of said possibility is the social and educational program entitled Brazil Goal (‘Programa Socioeducacional Gol do Brasil’), which aims to improve living conditions of children and teenagers. The end purpose is precisely this, though the means by which it is achieved is through football. We have secured partnerships with public officials who are highly sensitive to our cause. Though we need goals and methods, we also need to bring together feelings of excitement and spirit into this great chain in order to lure a target audience so dire in need of opportunities.

Another endeavor carried out by CBF has the aim of supporting the “Future National Teams Project” (‘Projeto Seleções do Futuro’) that is spearheaded by the Ministry of Sports. The purpose is the same: to bring together young people aged between 7 and 17 years to develop their physical and motor skills through the

practice of football. Football is also proven to be a key path in improving quality of life, increasing self-esteem, bettering social interactions, fostering respect for rules, promoting social integration and improving health. As a result of an enhanced interaction with international organizations, we also secured in 2017 the release of FIFA and CONMEBOL funds, such as the legacy fund of the 2014 FIFA World Cup, the FIFA Forward Program and the ‘Evolution Program’ (‘Programa Evolución’) (CONMEBOL). The World Cup legacy, for example, foresees investments aimed at developing youth ranks and women’s football, in addition to building training centers in the 15 Brazilian states that did not host 2014 World Cup matches.

Still within the scope of the Secretary General’s Department, we sought in 2017 to further improve relationships with players, former players, referees, Clubs and Federations. They are, after all, the reason why our organization exists. We represent and serve them. Today, there is clearly a feeling of unity surrounding Brazilian football and harmony in the search for the best possible solutions, which further increases the belief that we are on the right track.

WALTER FELDMANSecretary General

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The Brazilian Football Confederation (CBF) is extremely pleased to submit in this chapter the main accomplishments and corresponding figures that impacted the organization positively and significantly throughout 2017 in regards to its operating structure, premises and events. They are important issues guiding its operations in supporting the fostering of football as its role as the largest football developing entity in the country. They address issues that distinguish it as an organization and bolstered it in its continuous growth.

In addition to the ones described here, the achievements specified throughout this report are themselves responsible for highlighting and verifying how CBF has been increasingly taking the reigns, in an evergrowing decisive manner, in its institutional role, so aptly described in its mission, which is comprised of:

1) Fostering football full-time, from its key core in its distinct ranks, promoting and organizing competitions and providing the best possible preparatory infrastructure for the national teams.

2) Championing fairness in competitions through the enforcement of transparent criteria that ensure equality among

participating clubs and, consequently, guarantee the unpredictability of results and the principle of continuity of competitions. Therefore, this part of the report stresses the core of resources and structures that support and provide the organization’s operations:

1. Administrative Headquarters and Events; 2. CBF Academy; 3. Granja Comary; 4. Museum of the “Brazilian National Team”

Thus, in a brief and objective way, this chapter addresses issues encompassing a wide range of the organization’s scopes of interest: the working structure for administrative professionals and for supporting the Brazil National Team in its various ranks, the new framework in disclosing awareness on football and, furthermore, appreciation of the history and triumphs of the “Canarinho National Team”.

We will now specify features of the administrative headquarters and of some major events that were carried out.

It entails the place where the entire management and administrative structure of the Confederation is held, its Board of Directors and employees, as well as third party individuals whose efforts ensure the organization is up and running and capable of carrying on with is operations.

With renovated premises in Rio de Janeiro since June 2014, one of the cities waiting to host the FIFA World Cup that year, the headquarters was conceived, planned and built with the purpose of providing the best possible working conditions for CBF.

The headquarters consists of a proper and exclusive building designed to meet the needs of the country’s biggest sports confederation. It brings together important customizations and state-of-the-art sustainability requirements: a rainfall collection and water reuse system generated by air conditioners; in addition, a solar panel system conceived to reduce energy consumption from conventional sources.

Moreover, the headquarters comprises the Museum of the Brazilian National Team and a state-of-the-art auditorium that hosts a wide number of events, such as Brazil National Team call-ups.

2.1 ADMINISTRATIVE HEADQUARTERS AND EVENTS

INSTITUTIONAL2

12 2017 MANAGEMENT REPORT

•1st National Meeting of Football Coaches – Held in the headquarters’ auditorium and organized by the National Federation of Football Coaches (FBTF). The event brought together 73 football coaches, including those in charge of the Brazil National Teams. After debating important issues, such as coaches’ registration, licenses, exchanges and other matters, a commission comprised of the FBTF President Zé Mario, Secretary General Alfredo Sampaio, Vice Presidents Falcão and Wagner Mancini, coaches

Zico, Parreira, Luxemburgo, Oswaldo de Oliveira and Tite assembled with the CBF President and Board of Directors to discuss matters related to football coaching duties.

• 3rd Continuing Education Symposium of the National Football Physicians’ Commission (CNMF) - The then President of the Brazilian Football Confederation opened the event, whose aim is to share knowledge in this field of developing sports medicine, and united 60 physicians from Séries A, B and C clubs, in addition to 50 other invited professionals.

Approximately 30 experts gave lectures on the following subjects, among others: upper body, torso and pelvis injuries; football player concussions; licensing consequences for the Medical Department; and, moreover, muscle injuries and stress fractures (foot, ankle and knee). The event emphasized the organization’s concern on improving the medical side of football.

Events

15

The administrative headquarters hosted a wide number of Brazilian football-related events throughout 2017. Among several events it receives, the spot welcomes Brazil National Team call-ups, courses, training programs, draws for CBF-organized competitions, besides other events, such as press conferences, particularly after call-ups, in addition to important inside events: the organization’s Board and assembly meetings. Some of these events during the 2017 season included:

14 2017 MANAGEMENT REPORT 02. INSTITUTIONAL

The event brought together 73 football coaches, including those in charge of the Brazil National Teams.

• Debate on Stadium Safety – The Brazilian Football Confederation’s Heads of Departments and of Security Management, members of the Superior Court of Sports Justice, prosecutors and public safety organization representatives met to discuss safety of fans and to propose partnerships

focused on fighting violence both inside and outside of Brazilian stadiums.

The meeting discussed issues such as sale of alcoholic beverages in stadiums and use of biometric technology to identify fans.

We can confidently say that 2017 definitely strengthened and consolidated CBF Academy as a center of excellence in educating and teaching, with the purpose of fostering football in Brazil.

The meeting also debated measures aimed at fighting violence among organized fan clubs, new ideas for sports

equipment technical reports and new protocols and action plans in football matches taking place within Brazil.

2.2 CBF ACADEMY


PRO License class at the Granja Comary (December 2017).

While always keeping in mind the principle of teaching and educating professionals working in sports, the department increased its team by hiring qualified staff and enhanced its efforts related to managing technical licenses and specific programs in a wide host of fields: football management, sports law, physical training and goalkeeper training, football intermediation and technical coordination, among others. Compared to the previous year, CBF Academy increased its number of programs offered from 12 to 14: the Technical Coordination for Youth Ranks and Intermediation Workshop. Furthermore, the number of classes was also significantly increased and, additionally, featured courses with specific content per geographic area, including the Northeast (2), South (2) and Southeast regions of Brazil.

Efforts carried out mirrored the increased number of students: from 576 in 2016 to 1,288 in 2017, signaling a near 123% raise. In regards to the number of certificates issued, whereas 2016 had 343, in 2017 1,210 certificates were issued, a 252% increase, as can be seen in the graph.

Results achieved restate CBF Academy’s commitment towards its key goals, those being:

1) To make official CBF Licenses and certificates that constitute the Brazilian football professionals program both at national and international levels;

2) To develop a program aimed at training football professionals that is based on scientific knowledge and has a practical enforceability in the working routine of said professionals, based upon ethical and teaching grounds;

3) To foster a standard method for spreading theoretical and practical knowledge of Brazilian football through publications and records.

Methodology Structuring of courses, including the entire educational unit, standards for the number of hours/class, teaching method and other traits, were planned after evaluating teaching models for coaches used in several renowned places around the globe, research and on-site visits, interviews and instructor teaching seminars.

Furthermore, coaches and experts hailing from several sports-related fields were consulted in order to pinpoint necessary skills and capabilities for developing qualified professionals to perform in football-related areas. Additionally, with the intent of concluding and consolidating the methodology, CBF Academy’s managers, alongside a commission of experts, came together to discuss and validate a framework that, although related to international models, also was aligned and in tune with Brazilian culture and its specific traits.

In a plain and summarized way, the main “goal” is to boost beneficial relationships among football professionals, with the end purpose of enhancing the value chain in football, thereby becoming an important tool for the continuous development of the sport.


1,400

1,200

1,000

800

600

400

200

0

NUMBER OF STUDENTS

NUMBER OF CERTIFICATES

1,2101,288

343

576

2016 2017

Source: CBF Academy

Programs

As previously described, the department offered 24 classes in 2017, amounting to 1,352 enrolled students. Due to the football fostering mindset it possesses, after the initial application stage, CBF Academy’s recruitment staff evaluates, particularly from candidate resumés, whether there are, among the enrolled, members of clubs or institutions that effectively play a relevant role in Brazilian football. The goal is to enable learning opportunities to people who truly intend to apply the theoretical knowledge gained in favor of sports in Brazil.

Thus, CBF Academy offered the following programs during the season:

All subjects and their course content were widely discussed and planned so as to add value to football professionals. Some, in particular, are especially worth mentioning, such as the ones below.


PROGRAMS

PRO LICENSE

A LICENSE

B LICENSE

C LICENSE

PERFORMANCE EVALUATION (YOUTH RANKS)

PERFORMANCE EVALUATION (PROFESSIONAL)

GOALKEEPER TRAINING (YOUTH RANKS)

STRENGTH, POWER AND SPEED

PHYSICAL TRAINING (PRO)

TECHNICAL COORDINATION (YOUTH RANKS)

FOOTBALL MANAGEMENT PROGRAM

INTERMEDIATION WORKSHOP

LAW AND FOOTBALL WORKSHOP

TOTAL

Number of classes in 2017

1

2

4

5

3

1

1

1

1

1

1

2

1

24

Source: CBF Academy

PRO License (Professional) for Coaches

This program features an intense set of subjects focused on football coaching duties. The A License is an important prerequisite for acceptance, taking into account the fact that students are coaches who intend to perform as coaches in top-level professional teams. The course load is 370 hours, of which 260 hours relate to specific content theoretical and practical subjects, 50 hours are of special studies with tutoring, and 60 hours of supervision and observation of training sessions.

The 2017 program featured coach Fábio Carille, who was the Série A Brazilian Champion with Corinthians, and Vadão, coach of the Brazil Women’s National Team. Some of the instructors included Carlos Alberto Pareira and René Simões.

A License for Coaches

This program has a similar content to the previous one. It requires completion of the B License and has a course load of 270 hours, with 190 hours of specific content theoretical and practical subjects, 50 hours of supervision and observation of training sessions, and 30 hours of special studies and mentoring.

Currently, this program is the main license for coaches in Brazil, since, upon its conclusion, said professionals are ready to lead Brazilian Championship Série A-level teams.


Honorary License The Honorary License is granted to Brazilian football coaches who completed 60 years as of 31 December 2017 and accounted for at least 50 points, in accordance with criteria set forth during the 2016 CONMEBOL Convention. This is an acknowledgement to years of service rendered to Brazilian football, commitment and dedication to the career of football coach. Some of the coaches honored were Mário Jorge Lobo Zagallo, Evaristo de Macedo, Carlos Alberto Parreira and Abel Braga.

Law and Football Workshop Aimed at law professionals who work in football. Features 20 hours/class and some of its main lecturers included Marcos Motta, lawyer specialized in Sports Law, and Felipe Bevilacqua, an STJD prosecutor.

Intermediation WorkshopProgram conceived to train intermediaries registered at CBF in regards to rules guiding this activity, as well as football managers and sports attorneys. It has a course load of 20 hours/class and featured lectures by instructors Marcelo Jucá (President of the TJD-RJ) and Marcelo Moura, a TRT judge, among other teachers.

Football Management Program This is one of the main programs offered and is aimed at educating sports managers who perform in the football industry in several fields, such as planning, marketing, personnel management and sports law, for example. It is focused on enhancing professionals who work as managers in clubs.

The year of 2017 saw its third edition take place with the same level of success as that of its previous editions, showing for an attendance of 104 students.

2.3 GRANJA COMARY

The Brazil National Team Training Center (“Granja Comary”) is deemed the home of all national teams, in other words, it is the place where the national team, in any of its several ranks, finds peace, shelter and the necessary infrastructure for its ongoing preparation for the several competitions and tournaments it plays. It is important to note that this was yet another innovation made by CBF’s current management, since, in the past, the center was home only to the main Brazil National Team and failed to host other squads, such as youth rank national teams, for instance.


Located in the city of Teresópolis, in the mountains of the State of Rio de Janeiro, Granja Comary is a truly specialized sports center which enables state-of-the-art technology in equipment and premises aimed at training and developing high-level teams.

Furthermore, it offers lodging, meals and technical and medical evaluation facilities that meet the needs of a wide host of groups.

This training grounds offer the following:

The center has a total area of approximately 145,000 square meters, inside which the main building is located, featuring lodging facilities, restaurant and most of the aforementioned items. It also boasts game and entertainment rooms for recreational and leisure activities after completion of daily activities.

GRANJACOMARY

5 football pitches with official dimensions

36 guest rooms

1 fitness center with state-of-the

art equipment

1 restaurant with a professional

kitchen

1 medical center Physiology and Physiotherapy

1 indoor swimming pool for regenerative

training sessions


Occupancy Rate

Following the approval granted for all Brazil National Team ranks to use Granja Comary, in addition to enabling more teams to technically enhance themselves, a natural result was a steep increase in its occupancy rate. This number increased significantly in 2016, reaching 95%, whereas in 2017 it’s rate amounted to 67%. In spite of the slight shrinkage, these figures verify a trend of high occupation for the center, thereby benefitting a greater number of athletes each year.

CBF’s Heritage Department, which is directly responsible for running the center, keeps thorough and detailed records not only with regard to the occupancy rate of the premises, but also concerning the total number of training sessions led by coaches, as well as physical, physiological and follow-up evaluations carried out by coaching staffs.

Below, you will find figures breaking down the aforementioned information.

In addition to the aforementioned occupancy rates, the center hosted important events which did not require use of the complex hotel infrastructure (no lodging), but instead use of other resources:

NATIONAL TEAMS/TEAMS (days)

MAIN (Men’s)

MAIN (Women’s)

U-20 (Men’s)

U-20 (Women’s)

U-17 (Men’s)

U-17 (Women’s)

U-15 (Men’s)

OLYMPIC TEAM (M)

SPONSORS

TOTAL

2015

6

34

12

0

13

0

19

7

-

91

2016

6

80

60

31

25

13

5

14

13

247

2017

6

10

20

60

54

21

46

-

8

225

Source: CBF/Heritage Department

NATIONAL TEAMS/TEAMS – Use per day (no lodging)

MAIN (M)

MAIN (F)

U-20 (M)

U-20 (F)

U-17 (M)

U-17 (F)

U-15 (M)

OLYMPIC TEAM

SPONSOR EVENTS

PROGRAMS

OTHER TEAMS

2016 U-15 (DMK) NIKE CUP – 2017 Youth Rank Tournament

TOTAL

2016

-

-

7

-

28

-

8

-

7

53

-

7

110

2017

-

11

1

26

-

38

8

-

-

68

-

6

158


Granja Comary’s management is also in charge of and keeps detailed records of training sessions carried out in the five available pitches, as well as the fitness center, as seen below:

PREMISES X NUMBER OF TRAINING SESSIONS

FITNESS CENTER

PITCH 1

PITCH 2

PITCH 3

PITCH 4

PITCH 5

TRAINING MATCH

TOTAL

2016

163

81

153

157

105

13

19

672

2017

186

68

124

116

88

19

20

581


2902. INSTITUTIONAL28 2017 MANAGEMENT REPORT

Investments and Upgrades

The Heritage Department carries out regular assessments on needs pertaining not only to the teams, but also those of CBF as a whole. Thus, Granja Comary has received yearly advances for its upkeeping and improvement so that it can increasingly meet training requirements of the national teams.

Effective September 2017, its Board kicked off a project aimed at building a center of excellence inside Granja

Comary. The goal is to have a new indoor training center that would lead to an increased and enhanced overall capacity, which today is better suited to outdoor activities. The idea is to improve and tailor the physical and technological structure for high-level training sessions, and it is seen as a key requirement for providing even better conditions for high-performance athletes. The premises are expected to be completed in the first term of 2018.

The new premises are being built in a gym with a 650 square meter area. Some of its features will include the following:

• State-of-the-art gym equipment; • Synthetic turf for exercising and evaluations; • Facilities for physiological and laboratory evaluations; • Two classrooms (with a 60-student capacity, each);• Storage room.

The Brazil U-17 squad during a practice match at Granja Comary in Teresópolis.

3102. INSTITUTIONAL30 2017 MANAGEMENT REPORT

It is also worth mentioning the amount of residue coming from the center’s operations that was destined for recycling: approximately 3 tons, including cardboard, iron and aluminum, among other items.

Another point that further increases the challenges of the training center’s management operations are transportation requirements as well as fuel for operating the machinery. Below, you will find figures that size up transportation requests made by teams:

One of the reasons why we can perceive the center as a major sports complex is the wide host of services it offers, which, in addition to lodging and training facilities, also include the following: laundry, meals, recycling facilities and comprehensive transport/vehicle and machinery management supporting the premises operations.

Thus, the complex laundry services washed around 30 tons of clothing in 2017, from training equipment to guest room utilities, such as towels and bed sheets, for instance. Moreover, it is important to point out that the entire water consumption used for irrigation and washing of the premises

is reused, which generates a significant volume both to meet the needs of laundry services as well as to address environmental goals of reducing water consumption.

In regards to meal facilities, the center is equipped with a restaurant for up to 120 people that was conceived to efficiently meet the needs of the national teams. During the 2017 season, it prepared and served over 43,000 meals, between breakfast, lunch, dinner and snack breaks, amounting to approximately 24 tons of food, and delivering about 100 meals per day throughout a full year.

In 2017, nearly 20,000 liters of fuel were consumed by machinery used to maintain pitches and other equipment, including

everthing needed to fuel vehicles (buses, vans and trucks) used by the wide host of delegations that used the premises.

Services Provided by the Training Center

NATIONAL TEAM – TRANSPORTATION REQUESTS

MAIN WOMEN’S NATIONAL TEAM

WOMEN’S U-17 TEAM

WOMEN’S U-20 TEAM

MAIN MEN’S NATIONAL TEAM

MEN’S U-15 TEAM

MEN’S U-17 TEAM

MEN’S U-20 TEAM

TOTAL

2016

45

25

40

22

26

46

41

245

2017

27

15

21

28

25

25

16

157


According to management’s expectations, the new center of excellence will render possible the following:

• Enhanced use of the existing gym;

• Increase in sports-applied physical and technological infrastructure;

• Improved follow-up on professional players’ progress, as well as that of promising youth rank stars;

• Player rehabilitation;

• Specific training sessions;

• Research aimed at developing Brazilian football.

2.4 MUSEUM OF THE “BRAZILIAN NATIONAL TEAM”


Thus, while always aimed at its continuous operations and constant updating, the staff of the “Museum of the Brazilian National Team” planned and carried out several activities, including the following:

Effective its transfer to its new headquarters in 2014, CBF conceived and built the premises of the “Musem of the Brazilian National Team”, which operates on the ground floor of the same building as its administrative office in Rio de Janeiro.

The main purpose, when conceiving the museum, was to keep alive the memory of the most successful ever national football team for present and future generations, and all its unforgettable matches, trophies lifted and achievements. Thus, a temple dedicated to tell the story, past, present and future, of a squad able of stirring nationwide emotions, particularly during each World Cup, was erected.

In addition to its comprehensive collection, visits to the museum are interactive experiences to the senses

that are enhanced by high-tech equipment that seeks to reproduce timeless plays that have been eternalized in radio transmissions and black-and-white footage long before, as well as current TV broadcasts. At several times, visitors can experience what it feels like to enter a packed stadium, its sounds and the roar of fans through equipment devices that feign players’ perceptions in a 360-degree view.

Historical records rescue the beginnings of the yellow-green jersey national team before these uniform colors were well known, when its uniform was still predominantly white, depicting its first squads, players, wins, heroes and titles. Visitors can experience this in premises of nearly 1,000 square meters and capacity for 500 people.

Under the management of CBF’s Marketing Department, the museum’s staff keeps constant efforts aimed at maintaining and updating records and archives so that they always include the most recent matches, competitions and achievements made by the Brazil National Team, within all its ranks.

The premises are open to sports lovers daily from 10 a.m. to 6 p.m., and also offer half entrance fees (students and elderly citizens) and free entrance, as set forth under Brazilian law, for children up to 6, people with special needs, in addition to public school students and individuals representing organizations engaged with social projects.

We must also note that, in the last two years (2016/2017), the museum was granted a certificate of excellence by travel website TripAdvisor, which assesses quality in service and facilities.

• Conception of a specific space dedicated to tell the story of the unprecedented gold medal conquered during the 2016 Rio de Janeiro Olympic Games;

• Opening of a new store designed to market licensed products, which is located adjacent to the museum;

• Updating of the collection content, thereby featuring up-to-date facts related to the National Team that took place between August 2014 and June 2017;

• Renegotiations with the company in charge of operating the museum’s high-tech equipment, which led to an approximate 33% decrease in its agreement costs.

3502. INSTITUTIONAL34 RELATÓRIO DE GESTÃO CBF 2017

The Museum of the Brazilian National Team welcomed some memorable visitors, who further contributed to emphasize the importance of the collection, such as:

• The player deemed the best of all time, Edson Arantes do Nascimento – Pelé, close to celebrating his 77th birthday;

• Winner of the 1970 World Cup Jairzinho “Furacão”;

• Victors of the 1994 World Cup Bebeto and Cafu;

• A Chinese government committee representing the city of Zhuhai.

Visitation

Between fans, admirers, regular or famous people, around 17,600 individuals visited the museum throughout 2017. This figure shrinked

somewhat in comparison to the previous year, when 22,000 people attended.

Moreover, the administration organized special programs throughout the year: free entrance for parents on Parents’ Day in August; and on 12 October, for Childrens’ Day, at which time several

groups of children were able to visit, enjoy and record their visit to the temple of the Brazil National Team. During this day, over 400 children from social projects visited the museum.

According to the CBF Archive and Memory Department manager Antônio Napoleão:

“the partnership will enable mutual efforts, whereby the organization shall collaborate in identifying images, items and film clips, and the

National Archives shall assist in regards to guiding and arranging the photographic, film and personal file archive”.

Partnership with the National Archives

A special distinction worth noting is that CBF and the National Archives signed an agreement of mutual collaboration. The main goal, in accordance with the General Director of the National Archives José Ricardo Marques, is “to safeguard Brazil and CBF’s story, which tells the story of society and nation through sociological and anthropological traits that recount the story of Brazilian football”.


The General Director of the National Archives visits the Museum of the Brazilian National Team.

2015

2017

2016

Source: Marketing Department/CBF

25

20

15

10

5

0

VISITORS: in thousands of persons

17.6

12

22

Comparative table on Visitor numbers per year

3NA

TION

AL TE

AMS

This chapter addresses achievements relating to one of the main and most important roles pertaining to the Brazilian Football Confederation: to encourage, develop and enable the best possible working conditions for the Brazil National Football Team, irrespective of its rank – men’s and women’s, main teams and youth ranks.It will attempt to submit an overview on the most significant moments these teams had throughout the 2017 season. Under the management and coordination of the National Teams Department, the teams had significant participations in the competitions and tournaments they played.

Unlike in the previous year, when it faced and had to overcome certain challenges, the main Men’s National Team already began 2017 leading the 2018 FIFA World Cup South American Qualifiers and kept up solid performances until its very end. Coach Tite and his coaching staff were able to follow up on and, therefore, consolidate the work carried out by them, which remained at a high level and is supported by the subsequent results that will be submitted hereinafter.

Nevertheless, the first match of the year played by the main Men’s Team was surrounded by a very particular atmosphere which was distinct from that of any other match – the outcome was what mattered the least. This event showcased a profound sense of solidarity: CBF organized a match between Brazil and Colombia at Nilton Santos Stadium (Engenhão) in Rio de Janeiro, with the aim of raising funds for families of the victims of the airplane disaster with press members and the Associação Chapecoense de Futebol team that took place in November 2016.

Moreover, the match was a tribute to the heroic survivors and to the Colombian people, who carried out invaluable and immediate rescue efforts to victims of the accident. Consequently, around 20,000 people watched Brazil defeat Colombia 1-0 and, additionally, contributed to raising nearly R$ 1,200,000, sum that was entirely collected by those in need.

NATIONAL TEAMS 3


Youth rank squads also had important and distinguished participations in their competitions throughout the year, among which the following deserve special acknowledgement:

The main Women’s National Team also rounded off the year with excellent results following their conquer of the “Marvel Track Cup”, an international tournament played in China.

• Title of the U-17 Men’s South American Championship (Chile);

• Second place finish in the U-15 Men’s South American Championship (Argentina).

4303. NATIONAL TEAMS

South American Qualifiers

Countries Visited

Brazil’s first World Cup Qualifier match took place in March and showed for an impressive result (4-1) against one of its main South American rivals, Uruguay, while playing as the visiting side in Montevidéu. Next, and now playing as the home squad in São Paulo, the team had another significant win, this time over Paraguay (3-0).

In August, the side faced another tough opponent, Ecuador, playing in Porto Alegre (Grêmio Arena). Once again, the Brazil National Team came out on top, in spite of a closer result: 2-0. In September and in the beginning of October, the qualifying tournament proceeded with two matches and even tighter results: 1-1 against Colombia in Barranquilla and another 0-0 draw against Bolívia in the mountains of La Paz.

Wrapping up its participation in the tournament, Brazil defeated Chile 3-0 in São Paulo (Palmeiras Arena). Having ended the year with these results, the Brazil National Team was the first team to secure a place at the 2018 FIFA World Cup after attaining the necessary amount of points in the 14th round, four rounds before the end of the competition. With the end of the Qualifiers, Brazil finished 2017 as the dominating leader with 41 points earned, 10 more than Uruguay, who finished as runners-up with 31 points. Completing the group of teams representing South America at the World Cup were Argentina and Colombia, who finished third and fourth, respectively.

3.1 MAIN NATIONAL TEAM STATISTICS The purpose of this chapter is to submit significant statistical data evidencing Brazil National Team performances, in addition to other information that exhibits the impressive results achieved by these squads in the competitions they played. Below, you will find the number of countries visited throughout the season.

After having travelled abroad significantly in 2015, the Brazil National Team, in each one of its ranks, recorded a 33% cutback in its international participations and kept up the number of visits to other countries in the last two years: it

visited 16 countries both in 2016 as well as in 2017, playing either friendly matches or official competitions. In their pursuit of titles and representing the country overseas, our squads played against the five World Cup Champion sides.

NATIONAL TEAMSBRAZILURUGUAYARGENTINACOLOMBIA PERU CHILEPARAGUAYECUADOR BOLIVIA VENEZUELA

MATCHES

18181818181818181818

WINS

12977787642

DRAWS

5476523226

LOSSES

1545688

101210

GOALS IN FAVOR

41321921272619261619

GOAL DIFFERENCE

3012321-1-6-3

-22-16

POINTS SCORED

41312827262624201412

POSITION

1º2º3º4º5º6º7º8º9º

10º

GOALS SUFFERED

11201619262725293835

Final Qualifying Results – South American Qualifiers

Source: CBF – National Teams Department

Total Number of Countries Visited by the Brazil National Team – Yearly Figures

2015 2016 2017

30

25

20

15

10

5

0

1616

24

44 452017 MANAGEMENT REPORT 03. NATIONAL TEAMS

Tournament Participation

The Brazil National Teams, in all its ranks, participated in all in 11 competitions in 2017, as opposed to 14 participations in the previous year.

3.2 MAIN MEN’S NATIONAL TEAM

The five-time World Champions played 11 matches in the season, including five friendly matches, among which it suffered its only defeat of the year against Argentina in a match played in Melbourne, Australia. In the other 10 matches, the squad recorded 7 wins and 3 draws. In regards to the official competition played at this time, we must highlight the six 2018 FIFA World Cup South American Qualifier matches, with Brazil having a record of 4 wins and 2 draws.

During the season, both coach Tite as well as his coaching staff’s focus were aimed at securing a place at the World Cup in Russia, which was successfully attained ahead of time, as already mentioned. Moreover, friendly matches were organized and used to observe players having good seasons in their clubs, with the aim of assessing those who could be called-up to defend Brazil at the 2018 World Cup.

Taking into account matches played by the teams’ within Brazil and their distribution per region, matches took place in the North (Manaus), Southeast (RJ and SP) and South (Porto Alegre) regions of Brazil.

Source: CBF/National Teams Department

COMPETITION

SOUTH AMERICAN QUALIFIERS – 2018 FIFA WORLD CUP

U-20 SOUTH AMERICAN CHAMPIONSHIP

TOULON TOURNAMENT


MONTAIGU TOURNAMENT

U-17 FIFA WORLD CUP


U-15 NIKE FRIENDLIES

MARVEL TRACK CUP

FOUR TEAM TOURNAMENT

U-20 NIKE FRIENDLIES

GENDER

MEN’S

MEN’S

MEN’S

MEN’S

MEN’S

MEN’S

MEN’S

MEN’S

WOMEN’S

WOMEN’S

WOMEN’S

4703. NATIONAL TEAMS46 2017 MANAGEMENT REPORT

3.3 WOMEN’S NATIONAL TEAM

During the three years ranging from 2015 to 2017, the team played 37 matches, with a record of 25 wins, 8 draws and 4 losses.

Source: CBF – National Teams Deparment Source: CBF – National Teams Department

STUDY STATISTICS

2,000 hours of data

analysis

148 matches attended

in person

30 trips aimed at

on-site coach and club premise observations

Fifty-five players from 32 national and international clubs were called-up.

Match Results – Main National Team – Yearly Figures

12

10

8

6

4

2

0

2015

2 2

10

20172016

7

13

13

8

Match Results – Main Women’s National Team – Yearly Figures

25

20

15

10

5

0

2015 20172016

62

23

15

4 3

18

11

25

14

7

WINS DRAWSLOSSES WINS DRAWS MATCHESLOSSES

Throughout the season, the main Women’s National Team had its share of both good and bad results, which led to replacing the coach and coaching staff. Nevertheless, it is worth noting that the squad finished the year under the helm of coach Vadão and with an important title to boast, the Marvel Track Cup Tournament, which was played in China and included

participations of said host nation, as well as North Korea and Mexico.

Taking into account the entire season record, the team recorded 7 wins, 2 draws and 5 losses, and a total of 32 goals scored. During this time, the squad travelled to 7 countries, playing in North and South America, Oceania, Asia and Europe.

+25 professionals

engaged

The Women’s National Team show off their Marvel Track Cup medals.

Through its National Teams Department, CBF planned, called-up, prepared and led 5 of the 6 existing youth rank teams in their concerning competitions during the season. Whereas Brazil played 10 tournaments in 2016, it participated in 8 competitions in 2017 and managed to lift an important trophy: the XVII Men’s

U-17 South American Championships hosted by Chile. It is worth noting that olympic teams (men’s and women’s), whenever drafted, are deemed youth rank teams as well, and since they were not called-up during the year at hand, this consequently resulted in less participations than that of the previous year.

3.4 YOUTH RANKS

49

In this chapter, we will discuss that specific group of athletes deemed “youth rank” players who still find themselves in physical and technical stages of development, in addition to learning tactical skills before they are promoted to the main ranks.

These individuals are developed in clubs as well as encouraged by CBF, who hires expert professionals to lead youth rank teams and, thus, carries out call-ups exactly in the same manner as it does with players of its main team: scouting, studying and assessing the potential of promising stars and offering the best possible training conditions to those who, thanks to their potential and performances, are drafted to defend youth rank teams.

48 2017 MANAGEMENT REPORT 03. NATIONAL TEAMS

Youth ranks are divided into age groups, generally in accordance with how competitions are structured so as to enable fairness in these matches. Thus, they are split into the following categories:

• U-20 (men’s and women’s, whereby athletes aged 20 or less, as of the concerning year, can play);

• U-17, for both boys and girls who turned 17 until the concerning year;

• U-15, for male and female players who turned 15 until the concerning year;

The Brazil U-20 National Team face Venezuela in the South American Championships hosted by Ecuador.

5103. NATIONAL TEAMS50 2017 MANAGEMENT REPORT

Men’s See the graph below for consolidated figures pertaining to Brazilian youth rank squads (U-20, U-17 and U-15):

2017 Consolidated Figures – Men’s Youth RanksAmong men’s teams, there was also a great deal of preparing, travelling and competitions played by all three ranks. Efforts were rewarded following the second place finish at the U-15 South American Championships played in Argentina, as well as the U-17 South American Championships title lifted in Rancagua (Chile).

Led by coach Carlos Amadeu, the U-17 squad had an undefeated run while claiming the championship. The team undoubtedly had a flawless campaign to show for, recording 7 wins and 2 draws in 9 matches, with 24 goals scored and only 2 conceded.

In the final match played against the home side, Brazil dominated actions through a high-level and compelling playing style and thrashed their opponents 5-0. In spite of solid performances by each team member, Alan (Palmeiras), who scored three times, in addition to Paulinho (Vasco) and Lincoln (Flamengo), who scored 1 goal each, were highlights of the match. To top it off, the Brazilian side had the top scorer of the competition, namely, Vinícius Junior (Flamengo), who pushed the ball into the net 7 times.

MATCHES DRAWS LOSSESWINS


50

45

40

35

30

25

20

15

10

5

0U-20 U-17 U-15 TOTAL

444

12

23

18

23

10

910

77

31

45

The Brazil U-17 Men’s National Team celebrate the South American Championship title in Chile.

5303. NATIONAL TEAMS

2017 Consolidated Figures – Women’s Youth Rank Teams

MATCHES DRAWS LOSSESWINS Source: CBF – National Teams Department

Consolidated Figures – All youth rank teams

WINS DRAWS MATCHESLOSSES


120

100

80

60

40

20

02015

108

1627

65

2016

63

1315

35

2017

7

48

8

33

3,5

3

2,5

2

1,5

1

0,5

0U-20

1

2

3

TOTAL

1

2

3

U-17

000

If we make a global assessment on results achieved by each youth rank team by the end of the 2017 season, we find that 48 matches were played with 101 goals scored, amounting to an average of approximately 2.1 goals per match.

Following the method we used to submit men’s teams numbers herein, in this chapter we will introduce consolidated figures pertaining to women’s youth rank teams, which can be seen in the 2017 results graph.

We note that numbers encompass both U-20 and U-17 categories, whereas the latter, in spite of not having played official matches, underwent at least 3 annual training terms at Granja Comary.

Women’s

0 0 0

4RE

GIST

RATI

ON, T

RANS

FER

AND

LICE

NSIN

G

4

56 2017 MANAGEMENT REPORT 5704. REGISTRATION, TRANSFER AND LICENSING

Following the trend of past years, the volume of athlete agreement registrations remained elevated. Compared to the previous season, the number of registered agreements showed for a significant 35% increase, amounting to a total of 80,624 agreements signed in 2017.

Throughout the three years ranging from 2015 to 2017, 199,827 agreements were signed and made official concerning football athletes, taking into account both professional and amateur-level players.

Issues related to non-compliances with Football Athlete Registration and Transfer Regulations and National Intermediares Regulations shall be settled by the National Dispute Resolution Chamber, pursuant to the General Competitions Regulations. Sanctions foreseen for said cases are included under the CNRD regulations.

4.1 REGISTRATION – ATHLETE AGREEMENTS

Source: CBF/DRTL

Number of Signed Agreements – Yearly Figures

2015 2016 2017

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

80,624

59,68959,514

This chapter will address activities and enterprises comprising roles and duties of the Registration, Transfer and Licensing Department (DRTL) of the Brazilian Football Confederation. The department is in charge of procedures aimed at player registration, a requirement needed to enable their participation in the wide host of tournaments CBF organizes and helps to promote. Furthermore, it describes national and international player transfers, irrespective of these being professional or at amateur level, between national and international clubs. Finally, it explains what the CBF Club Licensing Program is.

This chapter also intends to submit an overview on activities undertaken at the same time concerning the Football Club Licensing Program. In a dedicated section, it will discuss the current status of the entire implementation procedure, guiding measures for clubs and explanations deemed necessary. In brief, this is all about CBF taking charge of its leading position in the continent and its commitment towards transparency and relentless football-related education and training.

All matters mentioned herein relate to the 2017 season and it is worth pointing out that in its last working week of the year, the DRTL Department was disclosing new regulations for 2018: Football Athlete Register and Transfer Regulations, National Intermediaries Regulations and the National Chamber of Dispute Resolution Regulations (CNRD).

In regards to player registration and transfer procedures, the following are new features not included in the previous year’s report:

• Agreement termination – players are not allowed to play matches on the termination date, regardless of it not having been published in the Daily Newsletter (‘Boletim Informativo Diário’, BID). • Development of a sports initiation record for 12 and 13-year-old teenagers;• Obligation to notify CBF on image rights agreements (if applicable); and • Effective 1 January 2018, a signed copy of the work permit, along with the player’s employment agreement, must also be sent.

REGISTRATION, TRANSFER AND LICENSING

5904. REGISTRATION, TRANSFER AND LICENSING58 2017 MANAGEMENT REPORT

Regional Analysis

First Professional Registration

4.2 AGREEMENTS PER AGE GROUP

When looking at the regional distribution of agreement registrations, we find that the Southeast region remains the busiest one, with an overall figure of 18,227 agreements, which can be explained by the fact that it is Brazil’s wealthiest economic region. The second region concentrating most registrations is the Northeast that, when compared to other parts of Brazil, has the greatest number of federation units. Below, you can see a graph detailing these overall figures.

Here, we find numbers related to players who either changed their amateur-level agreement by signing a professional agreement, or signed their first agreement with a professional club.

In a comparison between 2015 and 2016, we can see that there was a significant decrease in the number of first professional agreements signed. Looking at the previous year alone, this figure amounts to 29,878 registrations, as opposed to 8,076 in 2017. The following table portrays figures related to the last 3 years.

Fonte: CBF/Diretoria de Seleções

Source: CBF/DRTL

Number of Agreements per Region – 2017

First Professional Agreements – Overall Annual Registrations

Source: CBF/DRTL

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

2017

8,076

2016

29,878

2015

30,728

Source: CBF/DRTL

Total Number of First Agreements Signed per Age Group – 2017

3,000

2,500

2,000

1,500

1,000

500

0

20 TO 23 YEARS OLD

2,419

OLDER THAN 23 YEARS OLD

1,682

17 TO 20 YEARS OLD

2,390

+ 17 YEARS OLD

1,585

Following-up on the data analysis of the previous section, we further split the overall number of athletes into age groups who signed their first professional registration in 2017.

By looking at these numbers, we are able to tell that the highest number of agreements takes place between the 20 to 23-year age group – corresponding to 30%, followed closely by total player registrations with ages between 17 and 20, amounting to 29.6% of the total number of registrations.

Age groups are evaluated and total numbers pertaining to each one are shown below:

• Young players from youth ranks up to 17 years of age corresponded to 1,585 agreements signed; • Those older than 17 and aged up to 20 pose 2,390 agreements; • Athletes at least 20 and no older than 23 amounted to 2,419 agreements; • Finally, players aged 23 or more signed 1,682 agreements.

5,587

7,246

14,042

15,125

18,227

CENTER-WEST

SOUTH

SOUTHEAST

NORTHEAST

NORTH

6104. REGISTRATION, TRANSFER AND LICENSING60 2017 MANAGEMENT REPORT

4.3 AGREEMENTS PER GENDER

4.4 REGISTRATION – COACH AGREEMENTS

“Coach registrations are sports passports for said professionals, enabling them to have their entire work record safeguarded. It is a future guarantee that basic rights, such as social security rights, are ensured. Coaches will also have the benefit of CBF-granted life and personal hazard insurance under the same terms as that offered to players.” – explains the CBF Head of the Registration, Transfer and Club Licensing Department Reynaldo Buzzoni.

Coach registrations were approved by Série A, B and C Brazilian Championship clubs at Technical Councils held in February. Nevertheless, CBF had been examining the proposal since 2016. This measure enables the organization to foster improved benefits to professionals working in Brazilian football, thereby contributing to

its development and constant upgrading.

The measure poses a substantial breakthrough for football’s framework and registrations will now be mandatory for clubs playing in any division of the Brazilian Championship, pursuant to what is already set forth under specific, current regulations.

The first coach favoured was thrilled with the opportunity. “I am extremely pleased with this possibility. It is a milestone for our professional class and also because I had the opportunity to be the first one to represent coaches. This act poses guarantees and an enhanced stability, which by itself is highly significant for the future of football and Brazilian coaches” – stated Fernando Tonet of Piauí State’s Parnahyba club.

As a result, the DRTL Department registered, in all, 368 coaches in 2017.

When making a comparative analysis on agreements per gender, we can perceive a considerable increase, in overall figures, in women’s agreement registrations in comparison to previous years, although current numbers still fall significantly short when compared to overall men’s numbers. Whereas the total number of women’s agreements in 2016 posed 2% of men’s total agreements signed, this number rose to 4% in 2017.

This enables us to reason that there is still a significant potential for growth in regards to women’s football agreements signed in the country.

Whereas 1,647 women signed agreements in 2016, this figure reached the sum of 3,263 in 2017, signaling a 98% increase. The graph below brings forth a detailed analysis on these statistics.

The 2017 season posed a very special moment for the DRTL Department in regards to procedures related to the inclusion of football professionals. While pursuing demands not only limited to the professional class, but

also with the aim of constantly making upgrades to the sport, CBF introduced a working agreement registration procedure for coaches which now follows very similar procedures to those related to player-signed agreements.

Number of Agreements per Gender – Yearly Figures

Source: CBF/DRTL

100,000

50,000

01,419

2015

58,095

1,647

2016

58,039

3,263

2017

77,361

MEN’S WOMEN’S

4.5 TRANSFERS


International – players returning to Brazil

International – players leaving for overseas

The 2017 season recorded an increase in the number of players “exported” by Brazilian clubs, in other words, in transfers from Brazilian to foreign clubs. In all, 1,630 transfers were registered for players leaving for overseas, in comparison with 1,372 in the previous year, signaling a near 19% rise in regards to the 2016 season.

Following what took place in the two previous years, Portugal kept its spot as the country that most “imported” professional Brazilian players in the 2016-2017 term. In 2017, Portugal signed 392 athletes, followed by the United States in second, with 120, and Spain in third with 94.

Transactions through which Brazilian clubs bring back footballers playing overseas remained elevated, reaching the sum of 890 in 2017. The high competitition-level of domestic tournaments and consequent need

to search for quality players keeps motivating Brazilian clubs to carry out this kind of transaction.

Figures relating to player “importations” to Brazilian clubs are submitted below:

In breaking down this evaluation further, we found that 3 countries lead negotiations with Brazilian clubs: Portugal, which kept its leading position two years in a row - releasing 113 players this year; runners-up Japan, with 37 athletes, followed by China, with 36. Below, you can see a comparison with the 2016 season.

Source: CBF/DRTL Source: CBF/DRTL

2016

TOTAL NUMBER OF

541ATHLETES

1st PORTUGAL

342ATHLETES

2nd SPAIN

108ATHLETES

3rd GERMANY

91ATHLETES

2016

1st PORTUGAL

89ATHLETES

2nd ARGENTINA

31ATHLETES

3rd URUGUAY

31ATHLETES

2017

1st PORTUGAL

392ATHLETES

2nd USA

120ATHLETES

3rd SPAIN

94ATHLETES

2017

1st PORTUGAL

113ATHLETES

2nd JAPAN

37ATHLETES

3rd CHINA

36ATHLETES

2015

2016

2017

1,2201,630

1,372 Fonte: CBF/DRTL

Total number of athletes coming back to Brazil – Yearly Figures

900

880

860

840

820

800

780

2017

890

2016

818

2015

866

TOTAL NUMBER OF

606ATHLETES

TOTAL NUMBER OF

151ATHLETES

TOTAL NUMBER OF

186ATHLETES


National

Financial Sums - International Transfers

In this section you will find figures relating to player transactions between Brazilian clubs. During the 2017 season, these numbers basically relate to definite transfers or loans entailing financial compensation.

In all, 16,959 transfers were recorded, among which only 40 included some kind of financial exchange. Said transfers amounted to R$ 81,310,250 and portrayed a 14% absolute value growth in comparison with the previous year. Check the table below for a breakdown of these operations.

4.6 INTERMEDIARIES

Source: CBF/DRTL

Source: CBF/DRTL (2017 figures estimated from Dollar/Euro exchange rates taking into account the PTAX on 28 March 2018).

TRANSFERS ENTAILING FINANCIAL SUMS

DEFINITE

LOANS

TOTAL

SUM

R$ 78,401,250

R$ 2,909,000

R$ 81,310,250

TOTAL NUMBER

28

12

40

The season remained quite busy, particularly in regards to international transactions. During both yearly transfer windows in 2017 (January to April and between June and July), there was a significant increase in financial sums concerning transfers from Brazil to overseas in comparison with the previous season. The opposite registered a slight decline, in other words, transfers from overseas to Brazil, as shown in the graph on the right-hand side.

Herein, we disclose significant figures relating to intermediaries. In accordance with the National Intermediaries Regulation, these are either individual persons or legal entities that perform “as player/football coach and/or club representatives, whether free of charge or through compensation, with the purpose of negotiating or renegotiating the signing, amendment or renewal of sports development and/or player transfer employment agreements”.

The DRTL Department reviews and updates said regulations, updating CBF intermediary registrations whenever new requests come in, are evaluated and approved. The results of these efforts can be verified through disclosure of names of authorized professionals or companies, which is undertaken from time to time at CBF’s homepage.

At the end of the 2017 season, the DRTL Department accounted for 552 registered intermediares in CBF’s registration system, in comparison with 251 registered professionals in the previous year – thereby signaling a near 120% increase. After examining the ratio of intermediaries to total number of transfers, we have the following figures to submit:

From overseas to BrazilFrom Brazil to overseas

20172016

R$ 645,125,738

R$ 212,464,373

R$ 967,719,939.03

R$ 115,455,159.17

Additionally, we must note that, in case there are any, all intermediaries involved in negotiations must be reported in each transfer carried out.

In regards to intermediation-related sums, there were 144 operations with declared sums, amounting to R$ 23,388,108.

YEAR

2016

2017

NATIONAL TRANSFERS

12,793

16,959

INTERNATIONAL TRANSFERS

2,190

2,520

TRANSACTIONS WITH INTERMEDIATION

344

492

TOTAL PERCENTAGE

2.3%

2.9%

Source: CBF/DRTL


In light of several discussions that took place, there are no remaining doubts that clubs have individual responsibilities to take on a high management level and uphold their financial stability. Thus, licenses will enable clubs to truly progress and reach in the best possible way all required criteria each year, and always having CBF’s due support and technical guidance, in addition to that of expert partners.

Clubs’ information and documentation reporting is centered in a single procedure carried out at the Confederaton. Decisions on whether to grant or not licenses are exclusively up to the independent Licensing Granting Commission, which assembles annually to discuss licensing requirements submitted by clubs.

It is worth noting that figures relating to intermediaries’ participation in national transactions portray numbers disclosed by parties concerned to CBF. Sums relating to payments carried out by intermediaries resulting from operations undertaken are submitted by said parties, pursuant to Attachment No. 3 of the National Intermediaries Regulations. Nevertheless, the total number of agreements celebrated in partnerships with intermediaries is disclosed by clubs in charge of celebrating them.

GENERAL FIGURES/INTERMEDIATIONS

REGISTERED INTERMEDIATIONS

TRANSFERS INVOLVING INTERMEDIATION

OPERATIONS INCLUDING DECLARED SUMS

INTERMEDIATION SUMS

2016

251

344

72

R$ 18,517,478

2017

552

492

144

R$ 23,388,108

Source: CBF/DRTL

Comparative table on Intermediation deals - 2016/2017

4.7 CLUB LICENSING

Club licensing is one of CBF’s main tools aimed at increasingly training and developing Brazilian football as a whole throughout the two coming years.

In tune with FIFA and CONMEBOL’s standings on the issue, in 2017 CBF introduced its own Brazilian club licensing program after publishing a new edition of its Club Licensing Regulations.

The licensing model conceived and introduced by the organization has two main goals:

• To develop clubs – particularly since it will enable to identify and bolster enhancement of important club departments, such as youth rank teams, for instance; and

• Benchmarking – in rendering possible the consolidation of figures and comparative analysis between organizations and their concerning administrations in the wide host of activities they carry out.

Club Licensing Managers of South American federations meet at the CBF headquarters.

Throughout 2017, CBF carried out several technical visits to sports organizations playing in the Série A Championship. The purpose was to have an up-to-date diagnosis on important technical criteria in key fields within football, such as, for instance, stadia and training center infrastructure, technical staff training, administrative and legal frameworks and financial situation (balances and budgets).

At the end of the year, FIFA and CONMEBOL held at the CBF headquarters a number of meetings aimed at discussing and fostering the development of licensing systems, which featured participations of Club Licensing Managers of the 10 (ten) South American national football associations, in addition to a representative of the Italian Football Federation (FIGC).

“Our aim was to enable each one to show and teach us how they developed their introduction model at national levels and problems that arose until now for clubs. The idea is to become acquainted with the best practices and, additionally, to set forth requirements that will be introduced effective next year”. – commented the CONMEBOL Head of Club Licensing Mariano Zavala.

“We were fortunate to be able to host every South American Federation here. Next year, Licenses will also apply to the ‘Copa Libertadores’ (‘Libertadores Cup’) and ‘Copa Sul-Americana’ (‘South American Cup’). The main novelty is the introduction, which will take place at a later stage, of financial criteria that will be gradually tested and commonly applied to each South American country” – assessed the CBF Licensing Manager Enio Gualberto.

In all, 24 (twenty-four) clubs participated in the licensing procedure with the 2018 season already in sight. In all, CBF expects that 44 (forty-four) clubs will be licensed by the end of said season, since Club Licenses will be in force and shall apply effective 2019 to Brazilian Championship Séries A and B.

Another key role that the DRTL Department carries out, alongside the Archive and Memory Department, is the recovery of old athlete registrations. This work includes searching for documentation required so that players who oftentimes have not played for a long time can prove how long they played football. This is of the uttmost importance for former players who wish to request their earned retirement at social security offices.

After identifying documents and proving athletes’ years of service to the sport,

CBF issues the concerning certificates, which are key to proving how long each player played. Consequently, they are able to gather all required documentation aimed at receiving their earned benefits.

Between 2015 and 2017, the DRTL Department issued 1,507 retirement certificates for former players whose concerning registrations were identified by CBF. We recorded a 26% increase in certificate issuing from the previous year to the 2017 season. Below, you will find this progress in regards to the last 3 years.

The Registration, Transfer and Licensing Department will carry on with its efforts, with the aim of enabling that each former player who one day was registered at CBF is duly enrolled in the control system and, moreover, if possible, is able to secure official confirmation allowing them to receive their benefits.

4.8 RETIREMENT CERTIFICATE


Source: CBF/DRTL

Retirement certificates issued

800

700

600

500

400

300

200

100

02017

682

2016

540

2015

285

5CO

MPE

TITI

ONS

This chapter will provide an overview on one of the Brazilian Football Confederation’s main roles: planning, promoting and coordinating regional and national championships, whereby it leads and carries out activities in a wide host of clubs within the entire country.

Within the organization, this challenging duty is taken on by the Competitions Department (DCO). Just to exemplify and give a brief idea on the challenging work the department undertakes, it is worth noting that in order to fulfill its mission it breaks down its activities into specific and complementing procedures, as explained below:

• Planning and drawing up an annual competitions calendar as well as concerning draws setting up matches;

• Developing general and specific regulations for coordinated tournaments;

• Full-time overview and management of matches pertaining to several tournaments, many of them with ‘in loco’ attendance, in other words, watching them live at stadiums, which is defined according to the importance and risks pertaining to the match;

• Monitoring lawsuits lodged at ruling courts holding sports jurisdiction, particularly the ‘Superior Court of Sports Justice’ (‘Tribunal Superior de Justiça Desportiva’, STJD), in addition to potential rulings or sanctions enforced upon athletes and clubs;

• Recording rulings related to said legal bodies in an internal system, with the aim of following-up on athletes’ suitability to play in tournaments pursuant to regulations;

• Monitoring and disclosing possible and necessary changes made to match schedules to all parties concerned;

• Developing and updating annual team rankings pursuant to previously defined criteria, particularly taking into consideration performances in competitions;

• Ensuring that competitions uphold concerning federal legislation, in addition to:

I - Football match rules set forth by the International Football Association Board; II – FIFA regulatory acts; III – CBF regulatory acts;IV – The Brazilian Sports Code of Justice;V – National and international doping control regulations;

COMPETITIONS5 • Supervising activities carried out by the Competitions Ombudsman Department, in accordance with Law no. 10.671/031; • Requiring disclosure of Stadia Technical Reports, pursuant to Law No. 10.671/032; • Inspecting stadiums, as well as inspecting and certifying their pitches for the season;

Following what took place in 2016, the 2017 season featured a busy schedule with many competitions and matches relating to over 160 clubs in the entire country.

Once again, it posed a significant challenge to CBF, particularly in regards to planning, following-up on and coordinating events. The Competitions Department carried out efforts aimed at enabling the organization to coordinate 16 tournaments, in addition to the second edition of the already well-established ‘e-Brasileirão’, which is the virtual version of the Brazilian Série A Championship, and was launched in the Pro Evolution Soccer (PES 2017) games platform.

Number of MatchesCompared with the previous year, 2017 featured 84 additional overall matches. Matches played throughout the season took place in 182 stadia, that is to say, 9 more than in 2016.

Stadia vs. Matches - Yearly Figures

Source: CBF/Competitions

2,500

2,000

1,500

1,000

500

0

1,757

2015

169

1,836 1,920

2016

173

2017

182

STADIUMS MATCHES

72 2017 MANAGEMENT REPORT 7305. COMPETITIONS

Competitions Organized

In fulfilling its mission to seek the constant development of Brazilian football, CBF also increased the number of competitions in comparison to the previous year. Whereas 2016 held 14 tournaments, 16 took place in 2017, reaching a high level of participation, competition and quality. These were broken down into 12 national and 4 regional competitions, among which 7 were professional men’s competitions, 2 were women’s tournaments and 7 related to youth ranks teams.

A highlight includes the creation of two new youth ranks competitions, the ‘Aspiring Players’ Brazilian Championship’ (‘Campeonato Brasileiro de Aspirantes’), a U-23 competition, and the ‘U-20 Super Cup’ (‘Supercopa Sub-20’), two major innovations introduced by the Competitions Department in the season. Both tournaments resulted from discussions with Brazilian club youth ranks officials and aimed at expanding knowledge on existing gaps in these ranks.

Thus, it was decided that the U-20 Super Cup would be played by the U-20 Brazilian champions and the U-20 Brazil Cup champions. In addition to securing

an important title, the winner ensured a spot at that division’s Libertadores Cup. After two thrilling derbies between Atlético-MG and Cruzeiro-MG (0-0 and 2-2) at the Arena Independência Stadium in Belo Horizonte, the blue jersey team (Cruzeiro) were the victors after winning the penalty shoot-out.

The Aspiring Players’ Brazilian Championship was another novelty that engaged the country’s main clubs. Following what some international leagues have been doing, which is to increasingly fund their U-23 ranks aimed at ensuring its active players remain in a key age group development “window”, CBF introduced this competition that was well received by several clubs. In addition to competitive matches, this tournament introduced promising stars to professional teams. Cup winners Internacional, for instance, concluded their participation in the tournament expecting to promote six players to their main team.

Work undertaken showcases and bolsters support efforts the organization has been providing developing athletes and teams where the country’s new generations of stars will develop.

The aforementioned novelties evince CBF and the DCO Department’s efforts in promoting and enhancing existing tournaments, in addition to planning and carrying out new ones. Thus, it is imperative to disclose increased

figures pertaining to competitions organized and inclusion of new clubs that are granted considerable support by the organization. The information provided below objectively supports this development.

Competition Evolution

CBF-coordinated Competitions

Increase in numbers of clubs in competitions that promote access to Brazilian football’s elite

2012 2013 2014 2015 2016 2017 2018

172%+07

10 1114 13

1619

2012 2013 2014 2015 2016 2017

91

6864

87 87 87 87

40 40 40 40

68

42%+

70%+

FOURTH DIVISION

BRAZIL CUP

Source: CBF/Competitions Department

74 RELATÓRIO DE GESTÃO CBF 2017 7505. COMPETITIONS

We must point out that clubs comprising Séries C and D are granted key financial support by CBF, which bears all team-related logistic expenses throughout their concerning tournaments. This means that the organization bears all teams’ transport, lodging and meal-related costs whenever they need to travel to play matches taking place outside their states – in other words, in “away matches”. This relates to direct financial support provided to 88 clubs. Total sums relating to these operations are disclosed in this report’s Financial Chapter.

In regards to sports results, Sport Club Corinthians Paulista were the winning side of Série A. Moreover, Palmeiras, Santos and Grêmio wrapped up their participation in the tournament’s top four position. In the Série B, the team known as the “rabbits”, nickname given to América Futebol Clube of Minas Gerais State, lifted the trophy, followed by runners-up Internacional and Ceará and Paraná, who were promoted to the 2018 Série A.

CSA of Alagoas State claimed the 2017 Série C Championship, followed by Fortaleza (CE), Sampaio Correa (MA) and São Bento (SP). Finally, Série D had 68 clubs fighting it out for the trophy, which was claimed by Operário (PR) and had Globo (RN) as runners-up, in addition to Atlético (AC) and Juazeirense (BA), who rounded off the group of clubs who were granted access to the 2018 Série C Brazilian Championship.

POSITION

1º

2º

3º

4º

5º

6º

7º

8º

9º

10º

11º

12º

13º

14º

15º

16º

17º

18º

19ª

20

PTS

72

63

63

62

57

56

56

54

54

53

51

50

50

47

45

43

43

43

39

36

CORINTHIANS - SP

PALMEIRAS - SP

SANTOS - SP

GRÊMIO - RS

CRUZEIRO - MG

FLAMENGO - RJ

VASCO DA GAMA - RJ

CHAPECOENSE - SC

ATLÉTICO - MG

BOTAFOGO - RJ

ATLÉTICO - PR

BAHIA - BA

SÃO PAULO

FLUMINENSE - RJ

SPORT - PE

VITÓRIA - BA

CORITIBA - PR

AVAÍ - SC

PONTE PRETA - SP

ATLÉTICO - GO

BRAZILIAN SÉRIE A FOOTBALLCHAMPIONSHIP – 2017

Final Brazilian Séries A and B Championship standings for the 2017 season – Source: CBF/Competitions Department

POSITION

1º

2º

3º

4º

5º

6º

7º

8º

9º

10º

11º

12º

13º

14º

15º

16º

17º

18º

19ª

20

PTS

73

71

67

64

62

59

58

51

51

50

48

48

48

45

45

44

44

37

34

32

AMÉRICA - MG

INTERNACIONAL - RS

CEARÁ - CE

PARANÁ - PR

LONDRINA - PR

OESTE - SP

VILA NOVA - GO

BRASIL - RS

JUVENTUDE - RS

BOA - MG

PAYSANDU - PA

FIGUEIRENSE - SC

CRICIÚMA - SC

GOIÁS - GO

CRB - AL

GUARANI - SP

LUVERDENSE - MT

SANTA CRUZ - PE

ABC - RN

NÁUTICO - PE

Brazilian Championship

There is no denying the fact that the Brazilian Championship is the main competition that CBF coordinates and supports. Its men’s tournament is broken

down into séries A, B, C and D – thereby comprising four distinct leagues. On the other hand, its women’s competition is split into séries A1 and A2 since the 2017 season.

BRAZILIAN SÉRIE B FOOTBALL CHAMPIONSHIP – 2017


SÉRIE C - 2017

CHAMPIONSCSA - AL

RUNNERS-UP FORTALEZA - CE

SÉRIE D - 2017

CHAMPIONS OPERÁRIO - PR

RUNNERS-UP GLOBO - RN

7905. COMPETITIONS

The Brazil Cup Goals Scored

The 2017 ‘Brazil Cup’ (‘Copa do Brasil’) finals were a landmark event for the DCO Department. Featuring key participations by Cruzeiro, Flamengo, Grupo Globo and their concerning federations, the final clashes were filled with activities organized by the DCO Department that were introduced shortly after the semi-final matches. The day after the Flamengo vs. Botafogo and Cruzeiro vs. Grêmio matches, CBF held a draw in its auditorium to see which sides would be granted home advantages.

These kind of draws had been a very uneventful event until then, merely aimed at fulfilling regulatory criteria. Nevertheless, this time around it became a true talkshow featuring Felipe Andreoli, Rede Globo’s ‘Esporte Espetacular’ show host, who

interviewed representatives of clubs participating in the finals.

At the finals, clubs wore sleeve patches bearing the competition logo, thereby greatly increasing the worth of these jerseys and turning them into unique items. In Belo Horizonte, where the final match took place, CBF organized its first-ever official press conference the day before the match. The Flamengo coach and Cruzeiro captain were present at Mineirão Stadium to attend to the press.

The final match was itself a very unique event featuring an unprecedented protocol, visual effects and fan participation, and both teams entered the pitch ready to continue the show that was kicked-off before the match.

2017 was clearly a goal-ridden year. In all, 4,684 goals were scored throughout 1,920 matches, signaling a 2.4 goal average per match. In comparison,

2016 recorded 4,619 goals scored, posing a 2,5 goal average per match. The table below introduces a goal breakdown per competition.


CHAMPIONSHIP X TOTAL GOALS SCORED

BRAZILIAN SÉRIE A CHAMPIONSHIP

BRAZILIAN SÉRIE B CHAMPIONSHIP

BRAZILIAN SÉRIE C CHAMPIONSHIP

BRAZILIAN SÉRIE D CHAMPIONSHIP

BRAZILIAN WOMEN’S CHAMPIONSHIP

BRAZILIAN U-20 CHAMPIONSHIP

BRAZIL CUP

U-20 BRAZIL CUP

U-17 BRAZIL CUP

WOMEN’S BRAZIL CUP

NORTHEAST CUP

U-20 NORTHEAST CUP

GREEN CUP

U-20 STATE TEAMS CUP

TOTAL

2015

897

925

461

427

251

166

418

155

194

193

176

51

74

23

4,379

2016

912

894

435

669

215

176

370

150

194

231

179

108

86

-

4,619

CHAMPIONSHIP X TOTAL GOALS SCORED



BRAZILIAN SÉRIE C CHAMPIONSHIP

BRAZILIAN SÉRIE D CHAMPIONSHIP

BRAZILIAN SÉRIE A1 WOMEN’S CHAMPIONSHIP

BRAZILIAN SÉRIE A2 WOMEN’S CHAMPIONSHIP

BRAZILIAN ASPIRING PLAYERS’ CHAMPIONSHIP

BRAZILIAN U-20 CHAMPIONSHIP

U-20 SUPERCUP

BRAZIL CUP

U-20 BRAZIL CUP

U-17 BRAZIL CUP

NORTHEAST CUP

U-20 NORTHEAST CUP

GREEN CUP

U-20 STATE TEAMS CUP

TOTAL

2017

923

820

418

631

382

197

63

160

04

282

148

168

183

96

93

116

4,684


As usual, forwards were relentlessly inspired in their quest to score goals for their squads. According to figures, they were even more decisive than in 2016. Whereas said season’s top scorer reached 25 goals scored (Robinho of Club

Atlético-MG), this number of goals fell significantly short in comparison with 2017. In this season, the main scorer was Henrique Dourado of Fluminense Football Club, who pushed the ball into nets 32 times throughout the year.

Season Top ScorersIn 2017, CBF organized the second edition of the country’s main online football competition. It featured 14,351 participants, which was a near 49% increase in comparison with the first edition.

Sponsored by Pepsi, Brahma and Pro Evolution Soccer (PES 2017), which is the company in charge of supplying the game, the ‘e-Brasileirão’ is played by the same teams that qualify for the Brazilian Série A Championship. The virtual tournament, however, is split into three stages: segmented draft stage, on-site knock out stages per club and final match, which takes place at the CBF headquarters. The first stage is key in establishing each club’s representatives. After each official club representative of the twenty 2017 Série A clubs is picked, groups are

created from which representatives of teams Botafogo, Cruzeiro, Vasco, Coritiba, Corinthians, Atlético-GO, Atlético-MG and Atlético-PR secured their spots at the Quarter-Finals. At last, the final match took place between Atlético-GO and Cruzeiro and was brilliantly won by the Cruzeiro representative player known as “Henrykinho”.

14,3519,627

2016

2017

49%+

2017 e-Brasileirão

Number of Enrolled Players:

Source: globoesporte.globo.com

Top scorers vs. total number of goals – 2017

35

30

25

20

15

10

5

0

HENRIQUE DOURADO

32

FRED

30

BERGSON

28

ANDRÉ

27

JÔ

25

8305. COMPETITIONS 82 2017 MANAGEMENT REPORT

Fan AttendanceMatch Distribution per RegionAn interesting fact that we discovered after examining matches held per region is the increase in match numbers in all five regions of Brazil compared with the previous year. The main increment was verified in the Southeast region: 8%. In regards to distribution, the ratio of matches among all regions remained similar to 2016, as can be seen in the “matches per region” graph below relating to the last three years.

In regards to match distribution per county, Rio de Janeiro was the city that hosted most matches, amounting to 126, followed by São Paulo, with 90, Curitiba, with 85, and Belo Horizonte and Goiânia, tied with 75 each. On the other hand, São Paulo was the busiest city in 2016, accounting for 85 matches.

One can clearly state that fans’ interest for football in the five-time winning World Cup nation remained high this season. Due to new features introduced and consolidated in regards to new match kick-off times, spectators have been given several options to follow their clubs and idols in CBF-organized competitions.

We can see a rise in fan attendance, since the country’s main competition suffered significantly lower attendance numbers in the last years due to major sporting events held in Brazil, and also due to a lack of major sports venues for national events.

In the Brazilian Série A “Brasileirão” Championship, in addition to usual match and kick-off times, families

and junior supporters were still able to watch matches on Sunday mornings at 11 a.m., which proved to be the preferred kick-off time for this fan profile. In all, numbers point to an average 20,775 attendance (18 matches). This signals an almost 17% increase in comparison with the previous year, at which time the average attendance was 17,761 spectators. Monday evening matches at 8 p.m. also registered significant attendance figures, rounding off weekend matches which accounted for a 15,729 average spectator attendance (25 matches).

Below, you can find spectator attendance averages for the Brazilian Série A Championship concerning the 2015-2017 term.

Matches per Region – Yearly Figures


Source: CBF/Competitions DepartmentCENTER-WEST SOUTHSOUTHEASTNORTHEASTNORTH

800

700

600

500

400

300

200

100

02015

632

152

494

107

350

2016

617

180

528

129

382

2017

668

164

543

134

411

Average Fan Attendance – Brazilian Série A Championship

17.500

17.000

16.500

16.000

15.500

15.000

2017

15,972

2016

15,801

2015

17,339

Série AThere is no doubt whatsoever that the Brazilian Série A Championship is the competition that brings together clubs with the largest fanbases in Brazil. This evidently showcases fans’ enormous interest in matches, which is further supported by figures: the 10 biggest matches in regards to attendances exceeded 44,000 spectators, as shown in the table at the right-hand side.

Série BThe following were the matches with record attendances in the Brazilian Série B Championship:

Among TournamentsAmong all promoted tournaments, it is worth noting those that attained record stadium attendances. Thus, we disclose at the right-hand side figures evincing interest in the country’s top competitions:

MATCH

SÃO PAULO X CORINTHIANS

SÃO PAULO X BAHIA

SÃO PAULO X CRUZEIRO

SÃO PAULO X CORITIBA

SÃO PAULO X GRÊMIO

GRÊMIO X CORINTHIANS

CORINTHIANS X PALMEIRAS

CORINTHIANS X ATLÉTICO MG

CORINTHIANS X FLUMINENSE

CORINTHIANS X FLAMENGO

DATE

24 Sep

03 Dec

13 Aug

03 Aug

24 Jul

25 Jun

05 Nov

26 Nov

15 Nov

30 Jul

ATTENDANCE

61,142

60,485

56,052

53,635

51,511

50,116

46,090

46,030

45,775

44,682

MATCH

CEARÁ X ABC

CEARÁ X PAYSANDU

CEARÁ X LONDRINA

PARANÁ X INTERNACIONAL

CEARÁ X FIGUEIRENSE

PARANÁ X BOA

CEARÁ X PARANÁ

INTERNACIONAL X PAYSANDU

INTERNACIONAL X CEARÁ

INTERNACIONAL X GOIÁS

DATE

25 Nov

14 Nov

02 Jun

03 Oct

20 Oct

25 Nov

17 Oct

25 Aug

28 Oct

01 Aug

ATTENDANCE

56,005

44,172

40,280

39,414

37,347

36,791

35,992

33,193

32,977

32,808

Record Attendances

5.1 PROJECTS

The Competitions Department is known for its daily and intense routine of processing information, carrying out evaluations and engaging with clubs, federations and the Superior Court of Sports Justice (STJD). Nevertheless, the projects department is where it is able to render possible the best conditions for competitions with the greatest added value, visibility for clubs and enhanced efficiency in executing and delivering each competition. When looking at professional football, there are two key issues: the ability to add value and feasibility of competitions. In brief, it is well known that professional competitions are already

consolidated within Brazilians’ daily lives, engrained inside fans’ minds and already have their own ‘clients’. Thus, the department decided to focus on finer details, adding value through an efficient competition-related management. This takes place through specific projects that address issues such as marketing, press, pitches etc. with a very basic goal: to take fans to stadiums, bring a higher perceived value to competitions (products), and translate this into enhanced revenues for participating clubs, whether directly or indirectly. Hereinafter, we will provide some examples of these kinds of projects:


BRAZIL CUP


15,9725,957

10,553




Project Protocol

Kicking off in the second semester of 2014, this project was key in bringing together and managing personnel that has access to venue pitches in the three main Brazilian Championship and Brazil Cup divisions. Though currently

still in development, the first stage of the completed project concerned managing press organizations that have access to pitches and teams entering the pitch.



Press

Radio stations and television networks now have clear guidelines on numbers, where they can carry out their activities, procedures and conduct allowed, information which is included in each competition’s regulations. This results in a nationwide standard for procedures and activities surrounding the pitch and order around these

premises. Together with press management aimed at adding value through new standards, new marketing measures were also introduced at pitches, such as gates, totems, picture boards and entrance tunnels. Said features are made available to Brazilian Série A Championship clubs free of cost.

Events

This season poses the definite establishment of this event which has become part of the calendar and signals the beginning of the country’s biggest and most important tournament. In 2017, Allianz Parque Stadium in São Paulo hosted the tournament’s opening ceremony and first match between Palmeiras and Vasco.

This is a result of efforts carried out in conjunction between the Competitions and Marketing Departments which, in addition to developing both concept and format, also worked together to enable supporters to enjoy an entertainment experience that far exceeded the sporting realm.

The opening protocol featured choreographed dancing, a large-size flag bearing the tournament’s official trademark and a show by Brazilian DJ Alok, a rising star in the world of international electronic music who reached Spotify Brazil’s top songs. The author of the hit track “Hear me now” entertained the audience before the match kick-off.

Before that, nonetheless, an orchestra performed the national anthem. Finally, attending spectators were able to see and admire the object that every club fan desires. It most definitely could not be kept out of the show: the beautiful and majestic trophy of the 2017 Brazilian Championship.

Opening ShowBrazilian Championship / Série A

TeamsAnother new standard introduced relates to teams’ entering pitches. Aimed at setting forth a nationwide standard for this procedure, which is each match’s main ceremony as well

as a precise timing system until match kick-off, CBF established a procedure and added value in introducing a theme competition song and a standard countdown.

PRESS – BEFORE

TUNNEL

PRESS – AFTERWARDS

GATE

Starting in 2015 thanks to the 2014 World Cup Legacy funds and having become a program that is fully funded by CBF, the “Pitch Project” (“Projeto Gramados”) had the initial aim of setting standards for Brazilian Séries A and B Championship pitch dimensions. Consequently, pitch sizes were set at 105m x 68m, in addition to other related measures: the pitch halfway circle, box, penalty spot etc.

In 2017, in turn, the project included Série C and also began measuring lighting and quality of pitches used in the three national divisions. These diagnosis were made available free of cost to those in charge of stadia, irrespective of being clubs, governments or companies. The goal is to enable CBF to monitor them more closely as well as attaining increasingly higher standards. We have

already achieved significant results due to better quality pitches and enhanced TV viewing by spectators.


Closing Ceremony

Each year, closing ceremonies of the Brazilian Championship are highly sought after events which draw a lot of attention from the press. Held at the CBF headquarters, last year’s event featured top-level anchormen from broadcasters

which hold image rights to the event (SporTV and Rede Globo) and had a lot of repercussion in social media and media in general. All these efforts aim to market and enhance the greatness of the Brazilian Championship.

Pitch Project

Overseas expansion

Looking ahead, the Competitions Department also carries out activities aimed at making competitions increasingly globalized. The first stage in this respect came about following the definition of new match kick-off times for Brazilian Championship matches. Sunday mornings at 11 a.m., Saturday afternoons at 4 p.m. and Monday evenings at 8 p.m. were three new kick-off times recently

established for the Série A, and taking into special consideration international markets and regions that can be marketed outside Brazil. Additionally, the department began efforts for the 2019 Brazilian Championship, at which time clubs will regain international marketing rights. CBF will lead them in this new realm, since it already has the know-how and skills to do so.

Video Assistant Referee (VAR)

Regardless of its enormous interest in making this a successful enterprise, the Competitions Department opened a bidding process so as to enable Video Assistant Referees (VARs) at the 2018

Brazil Cup, thereby further showing the wide range of attributions and responsibilities that are bestowed upon it.

PENALTY AREA AND BOX

11 m

R 1 m

R 0,15 m

R 9,15 m

16,5 m

9,15 m1,5 m min.

0,12 m max.

5,5 m7,5 m

40,3

2 m

7,32

m5,

5 m

0,15

m0,

05 m

18,3

2 m

0,12

m m

ax.

HALFWAY CIRCLE

CORNER KICK AREA OPTIONAL MARK

Additional official football pitch measures - Source: CBF/Competitions Department

6RE

FERE

EING

This chapter discusses the main achievements pertaining not only to the country’s refereeing framework throughout 2017, but also the most significant figures that evince its impressive range of activities in tournaments organized by the Brazilian Football Confederation.

Thus, the Refereeing Commission (CA-CBF) took on a decisive role in the season and engaged intensely in 16 tournaments coordinated by the organization (more on these can be found in this report’s “Competitions” chapter). Some of the main activities related to congresses, symposiums, lectures, video conference calls, workshops, programs, training sessions, feedback given to referees after matches and publishing of controversial refereeing decisions in Brazilian Séries A, B and C Championship and Brazil Cup matches. These efforts

were undertaken aimed at enabling conditions to constantly improve referees comprising the ‘National Football Referee Draft’ (‘Seleção Nacional de Árbitros de Futebol’ -SENAF), in addition to members of federation frameworks. Specific figures related to said events are duly registered at CBF and are available to the general public.

Another important achievement made by CBF through its Refereeing Department concerns the Video Assistant Referee (VAR) project whose use was requested by CBF and duly approved, in an unprecedented way, by The International Football Association Board (The IFAB) – body in charge of establishing and updating football rules worldwide. This took place alongside five (05) other countries. The project is led by Sérgio Corrêa da Silva, project leader for Brazil and head of the CBF Refereeing Department.

REFEREEING6

92 2017 MANAGEMENT REPORT 9306. REFEREEING

Within its scheduled planning, the VAR system was introduced in Brazil for the first time in the final matches of the Pernambuco State Championship, a tournament organized by that State’s Federation and featuring technology developed by CBF and refereeing officials from its refereeing framework. Its debut took place at the first leg of the finals between clubs Sport and Salgueiro on 07 May, and was employed again on the second leg in Salgueiro on 28 June 2017.

Use of VAR technology is restricted to four specific and clear match situations:

A - Goals (awarded and not awarded)

A - Penalties (awarded and not awarded)

C - Red Cards – RC (awarded or not awarded directly);

D - Player mistakenly punished with cards (yellow or red).

An additional live VAR test was undertaken at a match between clubs Brasilis and Taquatiringa for the 10th round of the 2nd Division of the U-20 São Paulo State Championship. This was part of a CBF-organized VAR Training Program that featured 64 VAR officials and 16 VAR supervisors. According to Manoel Serapião Filho, the CBF VAR creator and instructor, and representative at The IFAB for issues related to the matter, in addition to being in charge of the Technical Refereeing Pillar of the National Refereeing School (ENAF-CBF),

“the entire aforementioned training program and experience was extremely beneficial and has already enabled CBF to use VAR in its competitions, although excellence, as happens with any other activity, will only be reached after further maturing of the VAR process”.

9506. REFEREEING94 2017 MANAGEMENT REPORT

FIFA – Comprised of referees and assistant referees suited to officiate international competitions and CBF-organized competitions.

MASTER - Comprised of referees and assistants who, for whatever reason, no longer comprise the international roster, provided this is not due to ethical violations, and of those who have been SENAF members for over ten consecutive years and who have officiated matches in CBF’s main professional football category, and which should account for at least 100 (one hundred) matches as main referees and over 150 (one hundred and fifty) as assistant referees.

A-B - Comprised of at least 50 (fifty) referees and 70 (seventy) assistant referees suited to officiate matches in every CBF-organized competition, particularly in its Séries A and B.

C-D - Comprised of at least 120 (one hundred and twenty) referees and 150 (one hundred and fifty) assistant referees suited to officiate matches in CBF-organized competitions, particularly in Séries C and D, and pursuant to outstanding technical performances, fit to officiate Série B matches.

INTERMEDIATE - Comprised of at least 50 (fifty) referees and 50 (fifty) assistant referees suited to officiate CBF-organized competitions, particularly in non-professional competitions, and pursuant to outstanding technical performances, fit to officiate Série D matches.

National Football Referee Draft

In light of referee and assistant performances and, moreover, new officials promoted to the refereeing framework, the ‘National Football Referee Draft’ (‘Seleção Nacional de Árbitros’ – SENAF) is updated and renovated each year. In 2017, a new category division was introduced to

rank SENAF referees, taking into account criteria set forth by the Refereeing Commission aimed at restricting numbers of referees and assistants for specific competitions. Thus, please see below a breakdown of these categories and an explanatory overview on each one of them:

After its initial tests, however, the Refereeing Commission decided to assess it more comprehensively, examining infrastructure requirements and related costs before actually introducing VAR at the country’s main competitions. Initial predictions were met and the technology was introduced at the 2018 Brazil Cup quarter-finals, comprehending 14 competition matches. In the Brazilian Championship, use of VAR should only begin effective 2019, though it depends upon consent given by clubs comprising the concerning Technical Board.

“We carried out several tests at youth rank matches and the two final matches of the 2017 Pernambuco State Championship. We are heading into the sixth class, accounting for 64 referees trained by CBF, 8 by FIFA/CONMEBOL and 19 supervisors. Having CBF’s full support, we will achieve our mission”. – added the VAR project leader Sérgio Corrêa da Silva.


Since 2017, Master and A/B category referees are allowed to officiate until they turn 50, provided they fulfill every requirement. On the other hand, C/D category referees must be promoted to a higher category before they turn 43, or else, they will no longer comprise SENAF’s framework.

Federations may only appoint referees up to 35 years of age. We note that 542 officials, 224 referees and 318 assistant referees, both male and female, comprised Brazilian refereeing frameworks and were at the disposal of national competitions, in addition to international ones for FIFA referees.

Below, you can find quantitative figures pertaining to both previous and current seasons for comparative purposes:

Fouls Awarded

An important indicator that sparks significant interest is the average number of fouls, particularly since it impacts the dynamic of matches while affecting, furthermore, another indicator we will report on afterwards – the one relating to ball in play time – which considerably impacts quality of matches.

In the Brazilian Série A Championship, 11,465 fouls were awarded in 2017, whereas 11,571 were awarded in the previous year, signaling a 106 drop in fouls in overall sums.

In examining the average number of fouls per match in the same competition and term, we perceive a small decrease: 30.17 against 30.45 in 2016.

In this page, you will find a comparison between the overall average of fouls awarded in the last three years.

Looking at said indicator of the main national tournament and comparing it with figures of major European leagues, the first division of the Brazilian Championship falls short only 2 fouls behind other league averages, with an average number of 30.17 fouls awarded.

2015 2016 2017

Source: Refereeing Commission/CBF

Average Number of FoulsBrazilian Série A Championship

2015 – 2016 – 2017

31

30,5

30

29,5

29

28,5

28

27,5

30.17

28.65

30.45


Average Number of Fouls – Série A and Major European National Leagues – 2017

35

30

25

20

15

10

5

0

ENGLISH FIRST DIVISION

FRENCH FIRST DIVISION

GENERAL AVERAGE

SPANISH FIRST DIVISION

GERMAN FIRST DIVISION

ITALIAN FIRST DIVISION

BRAZILIAN CHAMPIONSHIP

23.2825.66

28.21 29.32 28.4430.17

27.56


BADGE

FIFA

MASTER

A-B

C-D

INTERMEDIATE

TOTAL (542)

2017

REFEREES

10

7

49

116

28

210

MALE FEMALE

REFEREES

4

1

0

8

1

14

ASSISTANT REFEREES

10

5

47

168

28

258

ASSISTANT REFEREES

3

1

2

41

13

60

2016 2017

FIFA

MASTER

AB

CD

INTERMEDIATE

FIFA

MASTER

ASPIRING PLAYERS

SPECIAL

CBF 1

CBF 2

CBF 3

MAL

E

MAL

E

FEM

ALE

FEM

ALE

20 20

72

2

49

14

12

96

284

56839

12

103

184

14

99

148

3

11

3

20


Ball in Play Time Cards Awarded

Another key indicator that says a lot about quality of matches is the “ball in play time” or playing time. In comparing these figures with those of the previous two years, we find a small drop in these numbers. According to the CBF Refereeing Commission, Brazil’s first

division accounted for 52 matches whose ball in play time was equal to or exceeded 60 minutes. This number constitutes approximately 14% of the total number of matches (380), whereas in the two seasons preceding it this statistic reached 24% and 15%, respectively.

It is safe to say that a statistic that denotes part of referees’ level of rigour in matches and, at the same time, the competitive level of matches themselves in a tournament is the number of cards awarded. Thus, in

looking into these numbers, we found that the number of yellow and red cards awarded in the Brazilian Série A Championship remained practically the same when compared to 2016.

2015

2017

2016



100

80

60

40

20

0

Total number of matches with over 60 minutes of ball in play time

5258

94

6

5

4

3

2

1

0

YELLOW CARDS 2015

RED CARDS 2015

4.8

0.29

YELLOW CARDS 2016

RED CARDS 2016

4.69

0.23

YELLOW CARDS 2017

RED CARDS 2017

4.77

0.21

Whereas 1,811 yellow and 78 red cards were awarded in 2017, the previous year registered 1,782 yellow and 88 red cards.

Number of Correct Decisions – Main Criteria

Refereeing Ombudsman

The Ombudsman hotline is another part of the Brazilian refereeing framework. It is a body whose duties include receiving, assessing and answering complaints made by clubs and related suggestions concerning Brazilian refereeing.

Hereinafter, you will find objective figures providing an overview on the work carried out by said department throughout 2017. The Ombudsman hotline received and followed up on 54 calls relating to 1,689 matches, thereby representing 3% of the total number – amounting to approximately 1 call per 31 matches.

Based upon work carried out with the Brazil National Team since 2016, the Refereeing Commission-CBF introduced performance evaluations throughout the previous season, thereby enabling it to undertake even more comprehensive assessments on its referees’ performances. The Radar System, which we will discuss in depth herein, enabled it to compile and organize more data that helped to enhance the quality of its refereeing.

COMPETITION

SERIE A

SERIE B

SERIE C

SERIE D

BRAZIL CUP

NORTHEAST CUP

OTHER COMPETITIONS

TOTAIS

COMPLAINTS

19

25

01

01

04

02

02

54

MATCHES

380

380

194

266

120

74

275

1,689



Comparative Analysis – Cards per Championship

Additionally, we carried out an individual comparative analysis whereby we only compared yellow cards of the main national championship, série A, with related figures pertaining to the world’s main championships or leagues. Furthermore, we examined red cards

in the same way. In this particular evaluation, we find that the Brazilian average is practically the same as the general average of every other tournament examined.

Results are shown in the graphs below.

6

5

4

3

2

1

0

3.8 3.45 3.784.41

5.03

Yellow Cards – main international leagues/2017

0.3

0.25

0.2

0.15

0.1

0.05

0

0.220.25 0.25 0.25

0.11

GENERAL AVERAGE

BRAZIL ITALY SPAIN FRANCEENGLANDGERMANY

Red Cards – main international leagues/2017


Incident overview/2017 – Refereeing Ombudsman Hotline

4.774.22

ENGLAND FRANCE GERMANY GENERAL AVERAGE

BRAZIL ITALY SPAIN

0.22 0.21

Note: All information relating to referee mistakes/correct decisions can be verified and corroborated at the related video clip analysis.


OFFENCES (FOULS)

2017

PERCENTAGE OF CORRECT DECISIONS

97.8%

AWARDED

11,465

CORRECT DECISIONS

11,446

NOT AWARDED

249

Offences (fouls)

YELLOW CARDS

2017


94.8%

AWARDED

1,811

CORRECT DECISIONS

1,795

NOT AWARDED

99

Yellow Cards

RED CARDS

2017


80.2%

AWARDED

78

CORRECT DECISIONS

77

NOT AWARDED

19

Red Cards


We conclude our evaluation submitting offside offence statistics:

OFFSIDES

2016

2017


84.9%

93.3%

AWARDED

1,435

1,203

CORRECT DECISIONS

1,030

1,123

ANALYZED

1,213

1,203

Training

As we described at the beginning of this chapter, each year officials undergo physical and theoretical evaluations that enable them to comprise SENAF’s refereeing framework, and from there on they become empowered to officiate matches, pursuant to their development.

In regards to physical evaluations, 617 referees and assistant referees were assessed during the season, whose results signal a 91% success rate. Referees’ physical fitness is deemed key in enhancing their ability to make correct decisions in a match, since it enables them to be better positioned on the pitch, something deemed critical for proper enforcement of the rules.

YEAR

2015

2016

2017

TOTAL

PHYSICAL

545

509

617

1,671

THEORETICAL

628

653

717

1,998

SENAF EVALUATION TYPE OF EVALUATION


In regards to theoretical evaluations, 717 referees and assistant referees were assessed, with a 78.5% approval rate. The Refereeing Commission-CBF aims at bettering both types of aforementioned evaluations based on the belief that bringing together good physical and technical features enhances officials’ successful performances in matches they are officiating.


Highlights – Female Referees

We also disclose herein female official statistics pertaining to the 2017 season. The continuous increase evidences womens’ rising participation – a 39% growth when compared to the

2016 season. In the 2018 season, FIFA instructor Ana Paula da Silva Oliveira will be in charge of managing the development of female refereeing in Brazil.

Psychological Pillar

Since more than a decade, CBF’s Refereeing Commission has offered a psychologist to support referees (pursuant to a story published at CBF’s homepage). This work has become a

model in the continent, a landmark position Brazilian refereeing has been taking on after enabling a professional to deal with its referees and assistant referees’ psychological issues.

In the last two rounds of the 2018 World Cup South American Qualifiers, eight Brazilian referees were appointed to officiate key matches. This is also a result of efforts carried out under the psychological pillar department.

At the opening ceremony of the ‘IV Women’s RAP-FIFA Program’ (‘IV Curso RAP-FIFA Feminino’) held in the city of Águas de Lindóia in São Paulo State, Peruvian FIFA technical instructor Ana Perez praised efforts undertaken in this field:

Evaluations carried out in each category are supported by psychologist Marta Magalhães. Efforts began in 2004 at the São Paulo State Referee Sindicate. In the following years, the work was implemented at CBF where, effective 2007 and thereafter, the organization took on and proceeded with the work. After CBF took on this role, another 15 Brazilian state federations followed suit and introduced their own psychologists to support referees.

“I have to congratulate the Brazilian refereeing commission, because for several years now they have been concerned with referees’ full-time development as people. Firstly, they develop the technical side to meet the rules of the game. Thereafter, they work on the physical side, since this job

requires this. And lastly, the psychological side. There are situations in a match where the referee has to learn to deal with and overcome a mistake and not let it get to his head. There is enormous pressure within a match setting. And a psychologist is necessary for referees to be able to face these kinds of situations”.


YEAR

2015

2016

2017

TOTAL

REFEREES

29

82

249

360

ASSISTANT REFEREES

285

373

386

1,044

TOTAL

314

455

635

1,404

FEMALE REFEREES

CBF’s refereeing psychology work began with the idea and establishment of four pillars:

• Physical - efforts began aimed at changing cognitive mindsets, which required a different methodology and enhanced training. Psychological efforts were introduced to help with both psychological and physical attributions.

• Technical - this pillar came about to support efforts in preparing for matches. The supervision work was carried out alongside referee profile mapping in regards to their attention and concentration levels.

• Psychological - at the same time, psychological preparatory efforts were introduced for technical, physical and social criteria.

• Social - the social pillar introduced attention to ethical issues and aims at bringing together referees as well. At the end of each training program, referees are able to express their feelings and reality perceptions relating to their lives and attributions they carry out.

“Sports disciplines featuring sports psychologists working together with their coaching staff have displayed successful results. This team work and the way the pillars intertwine brings about this success. Introducing psychological pillars and sports psychologists in sports disciplines is a matter of time, a requirement. Due to football players’ swift reactions nowadays, we have a shortage of enhanced psychological preparation”. – states Marta Magalhães.

Additionally, the CBF Refereeing Commission develops psychological rehabilitation efforts for injured referees consisting of psychological supervision until they are fully fit to officiate matches again. Those who live far away and, consequently, are unable to meet in person with Dr. Marta Magalhães, be it at her office or at training programs, are able to talk through video conference calls.

Specific psychometric evaluations, such as D2, concentrated, divided and alternating attention, personality tests and biofeedback, among others, are also used. Moreover, referees will undergo the Five Digit Test, among others, that additionally enable picking officials to perform as Video Assistant Referees (VARs). The purpose of this activity is to describe speed and efficiency related to cognitive processing, continuation of focused attention, progressive automatization of duties and capability of engaging in additional psychological efforts whenever referees face increasingly challenging situations that require a higher level of concentration. Furthermore, the department expects to invest in neurofeedback shortly.

All efforts described herein help give an idea of the approximate workload that the Refereeing Department undertakes to enhance quality of refereeing in matches, applying rules and making matches increasingly fairer.


• Training programs for overseas officials (Paraguay and Peru);• State pre-season training sessions;• SENAF qualifying assessments and reassessments;• Updating physical evaluations;• Representations (lectures, congresses etc);

• Training programs for SENAF referees;• Meetings with sports psychology professionals;• Training programs aimed at discussing the new referee assessment methodology;

• Training programs for video analysts;• Special training programs for FIFA referees;• Training programs for SENAF officials;• Brazilian refereeing renewal project (officials up to 30 years of age);• FIFA training programs for elite and promising referees, as well as technical and physical instructors and female referees;• Technical visit by the President of the Refereeing Commission-CBF to State Commissions;• Video Assistant Referee (VAR) project activities.

ENAF Activities Pursuant to other Brazilian refereeing bodies, The National Refereeing School (ENAF) planned and developed a busy season filled with activities aimed at training and enhancing officials.

In all, it executed 244 activities throughout the year, which are split into the following specific categories:

6.1 PROJECTS

109

Radar System


Throughout the competition, the system assessed every referee and assistant’s performance in an increasingly scientific, as opposed to subjective, manner. This method was introduced with the purpose of better fulfilling referees’ realities while, at the same time, not ignoring pitch issues, and precisely reporting on each referee decision made during the match. Featuring technology developed within CBF, the system is responsible for issuing scores – through a rigorous and automatic procedure – as opposed to analysts doing so.

Referees were assessed by pitch and video analysts trained to use the tool after participating in a program offered by CBF and the National Refereeing School (ENAF) in the beginning of the year. The system foresees specific referee duties

in matches, such as offences, offsides and cards awarded. Moreover, specific behavioral and match issues were also addressed. In bringing together theory and statistics on mistakes and correct decisions, the RADAR System is able to measure the entire technical side related to refereeing.

From thereafter, the Refereeing Commission-CBF compares assessments and, together with ENAF, draws up a third report to reach the final score for each referee or assistant. In regards to the first top ten-ranked referees, the following criteria was also taken into consideration: number of matches, average number of referees at each referee shift, matches with interference, number of times referees placed at the top three ranking of each round.

The aforementioned efforts enabled rankings of the best referees, assistants and other officials comprising match official teams throughout the season. The best ones were honored at the Brazilian Série A Championship awards ceremony, an event that has become a staple of Brazilian football calendar’s closure activities and takes place at the CBF headquarters.

Finally, we disclose below figures pertaining to the objective results of the supervision and assessment efforts carried out by the Refereeing Commission-CBF. Thus, you will find below a table disclosing referees who displayed the best performances throughout the season:

Aimed at assessing, improving and setting standards for Brazilian refereeing at Brazilian Série A Championship matches, the Refereeing Commission-CBF introduced a landmark project in the football world this season: the RADAR system, whose letters mean, in Portuguese, Refereeing Performance Analysis Report .


TOP 2017 ‘BRASILEIRÃO’ REFEREES

Referee: RAPHAEL CLAUS

Referee: GUILHERME DIAS CAMILO

Referee: BRUNO RAPHAEL PIRES

POSITION IN ROUND RANKINGS

Placed 10 times among the top three-rankedreferees

Placed 7 times among the top three-ranked referees

Placed 10 times among the top three-ranked referees

NUMBER OF PARTICIPATIONS

18 matches

19 matches

21 matches

Top three-ranked referees are honored at the 2017 ‘Brasileirão’ awards.

7M

ARKE

TING

AND

COM

MUN

ICAT

IONS

This part of the report attempts to fully explain all roles and accomplishments achieved by two extremely important departments for CBF’s operations: Marketing and Communications. They work closely together with the aim of supporting operations of a sports organization the size of the Brazilian Football Confederation, an organization with international reach, and featuring two well-defined guidelines: to provide full support to national teams and foster Brazilian football within all of its divisions, though focusing its efforts in planning and executing the country’s football championships under its wide range of ranks.

The main goals of the Marketing Department include bringing fans closer to the Brazil National Team, adding value to the CBF brand, making its products increasingly globalized and enhancing the football market, particularly in regards to clubs and federations.

Thus, marketing plays a key role in understanding the needs of each specific set of consumers, whether comprised of fans and Brazil National Team admirers or persons interested in one of the several tournaments CBF organizes each year. And based on this understanding, it proceeds to plan, schedule and carry out activities it deems most appropriate to address each group’s wishes.

The Communications Department is in charge of promoting exchanges between CBF and its target audience. Therefore, it seeks to report institutional guidelines and translate them into a simple and direct manner to stakeholders, in addition to promoting information transparency concerning said parties. Likewise, it plays a key role in upholding strategic data and monitoring sensitive information that can possibly damage the organization’s reputation.

MARKETING AND COMMUNICATIONS

77.1 MARKETING

During the 2017 season, the department introduced key projects and activities aimed not only at developing the sport and its entire chain of value, but additionally and particularly to target brands that support and relate to football and have been important in helping to continuously boost the sport.

With the end of the Olympics and Brazil’s unprecedented gold medal, efforts became targeted towards the main national team and its campaign in the South American Qualifiers for the World Cup in Russia. The coaching staff undertook vital efforts towards achieving this goal, however, it was duly supported by important marketing tools, such as advertising actions on match days that helped engage local spectators in cities where the squad played its matches.

Throughout the season, enterprises conceived and undertaken were aimed at contributing to and bolstering an encouraging current sports scenario:

• 360º CBF Sponsor Program;• ‘Fans and National Team. Giants by Nature’ Campaign;• Brazil National Team official products Licensing Program;• ‘Canarinho’ Mascot;• “We are Football” – Football Evolution Week;• e-Brasileirão marketing

Through more in-depth figures we will disclose herein, one can verify how each one was a key issue in generally improving the image of the organization, both institutionally as well as in regards to its products, thereby majorly contributing to enhancing the appeal of associated brands.

112 2017 MANAGEMENT REPORT 11307. MARKETING AND COMMUNICATIONS

7.2 360º CBF SPONSOR PROGRAM

7.2.1 SPONSOR MEETINGS

Relationships with its sponsors constitutes one of CBF Marketing Department’s main activities. Aimed at offering them the best possible treatment, the department undertakes several enterprises throughout the year which enable partners to meet their goals and overcome all expectations they hold in regards to sponsoring the team.


In regards to handling client accounts, tailored plans are conceived taking into account specific needs of each sponsor. Said plans entail following-up on and carrying out monthly reviews, in addition to focusing efforts on attaining financial returns on the investment, which is measured through key assessment sources (IBOPE Repucom Brazilian government agencies) and take into account recommendations for actions seeking to improve performances. Moreover, the program encompasses the following:

• Sponsorlink research studies to measure sponsor brand recalls and for mapping out National Team fan profiles;

• Internal introduction of a specific unit aimed at managing agreements, thereby enhancing the control over agreement deliveries and results from each partner.

Furthermore, several other actions carried out throughout the year enabled sponsors to have unique experiences, such as being able to sit on substitute benches at national team training sessions, take pictures and receive autographs from stars, travel in the delegation bus, among other benefits. In 2017, the program reached:

• Over 10,000 guests who were able to attend World Cup Qualifiers and friendly matches;

• More than 350 guests who watched the main Brazil National Team training sessions;

• Over 40 customer relations events with sponsors at national team training sessions and matches.

An instrumental part of customer relations concerns the annual meeting held with sponsors. This measure also addresses one of the key cornerstones of CBF’s current management which is transparency. The event consists of a meeting between the CBF Board of Directors and its sponsors, and has the purpose of not only updating them on enterprises undertaken by the organization, but additionally to disclose short, medium and long-term plans pertaining to every CBF department.

The 2017 meeting was the third edition of the event, and following what

happened in previous years, also disclosed updates on the Governance, Risks and Compliance Project (GRC) which is spearheaded by consultancy firm Ernst & Young. Thus, this enables companies to have a direct communications channel with CBF in which they can clarify doubts and questions they may have, in addition to enabling a closer relationship and being ensured that their brands are associated with a sound organization that is committed to significant enterprises not only related to football, but also aimed at their own markets.

7.2.2 SPONSOR MATCH

Entailing a different kind of proposal set within a more laidback and casual setting, sponsor representatives were invited to stay a weekend at the Granja Comary. In the event, guests were lodged at players’ quarters, played a friendly match and enjoyed

a barbecue. In 2017, the event had its third and fourth editions and featured participations from former Brazil National Team players, sponsoring brand officers, TV stars and the coaching staff of the current main team.

7.2.3 PARTNERSHIP GROWTH (FIGURES)

In regards to increases in the numbers of agreements signed with companies that supported CBF in fulfilling its institutional duties, the organization remains steadfast in its path towards reaching its previously defined goals and purposes, for which reason it

increased its number of partners to 19 in 2017 as opposed to 18 in the previous year.

The graph below shows increases in recent financial contributions made by sponsors and supporters.

AT THE EVENT

> Former National Team players > Sponsoring brand officers> TV stars> Coaching staff

R$ 339,604,000R$ 353,378,926

R$ 410,988,000

2015

2016

2017

Sponsorships – Sums in Reais



Fully aware that CBF devised and has been introducing structured plans aimed at developing football and the national teams, sponsors have followed suit and kept their efforts steady in regards to fostering Brazilian football.

Moreover, after examining national team results, we can confidently say that there is an undeniable progress made, with special highlights including securing a place at the 2018 World Cup in Russia four rounds ahead of time. Likewise, youth rank and women’s teams also lifted important trophies, information you can find in-depth at the “National Teams” chapter.

Looking at another organizational product, which is the promotion of regional and national championships, we must point out the increase in numbers of said tournaments is only feasible due to increments in contributions made by the organization’s partners. In comparison with the previous year, 3 additional tournaments took place, as can be seen in the “Competitions” chapter. Consequently, a wider range of clubs were potentially benefitted with additional revenues or, furthermore, with the chance to further develop their teams, particularly their youth rank squads.

1 NIKE (NATIONAL TEAM SPONSOR)

2 GUARANÁ ANTARCTICA (NATIONAL TEAM SPONSOR)

3 ITAÚ (NATIONAL TEAM SPONSOR)

4 VIVO (NATIONAL TEAM SPONSOR)

5 MASTERCARD (NATIONAL TEAM SPONSOR)

6 GOL LINHAS AÉREAS (NATIONAL TEAM SPONSOR)

7 CIMED (NATIONAL TEAM SPONSOR)

8 EF ENGLISH LIVE (NATIONAL TEAM SPONSOR)

9 ULTRAFARMA (NATIONAL TEAM SPONSOR)

10 UNIVERSIDADE BRASIL (NATIONAL TEAM SPONSOR)

11 CATAPULT (NATIONAL TEAM SUPPORTER)

12 CAFÉ 3 CORAÇÕES (NATIONAL TEAM SUPPORTER)

13 TECHNOGYM (NATIONAL TEAM SUPPORTER)

14 TCL (REFEREEING)

15 SKY (REFEREEING)

16 TOPPER (REFEREEING)

17 PEPSI (E-‘BRASILEIRÃO’)

18 BRAHMA (E-‘BRASILEIRÃO’)

19 PES2018 (E-‘BRASILEIRÃO’)

7.2.4 CURRENT FRAMEWORK

7.3 PROJECTS

121

This chapter section has the aim of further underlining and detailing projects that had significant goals and results for the organization throughout the season. Below, you will find some of these main enterprises:

The abovetitled advertising campaign was the first of its kind that the organization undertook for a World Cup. Launched exactly one year before the competition, it was conceived with the main goal of placing Brazil National Team fans as the main character in the squad’s quest for its sixth cup: ‘Fans and National Team. Giants by Nature’.

This advertising campaign received critical acclaim and won the LIDE Business Marketing award in 2017 under the best sports marketing campaign category.

Another remarkable moment in the campaign was an acknowledgment videoclip called ‘Gratitude’, in which National Team players showed their appreciation for fans’ support throughout the World Cup Qualifiers. The clip was launched exclusively in TV Globo and SporTV channels, though it also ran extensively in other TV networks and digital channels.


7.3.1 ‘GIANTS BY NATURE’ CAMPAIGN

This key enterprise was conceived with the aim of embodying the allure and excitement associated with the national team, in addition to its strength and sporting tradition. Having that in mind, and adopting the nickname fans have given the team long ago in its successful history, CBF attempted to bring back this feeling of empathy with fans and, particularly, with children. Activities undertaken accounted for significant results:

• Developing a new character whose appearance conveys the Brazil National Team’s fighting spirit;

• A major hit with fans in social media, particularly young supporters;

• Live appearances in TV shows like SporTV channel’s “Bem Amigos” and YouTube’s “Desimpedidos”;

• Developing on-pitch activities with the mascot in all national team matches and training sessions both in Brazil and abroad;

• International expansion of the mascot brand resulting from its appearances in matches played overseas;

• Commercial marketing actions with national team sponsors.

7.3.2 THE ‘CANARINHO’ MASCOT 7.3.3 NATIONAL TEAM OFFICIAL PRODUCTS LICENSING PROGRAM

This program kicked-off a structured plan to market official products related to the Brazil National Team and its mascot, the ‘Canarinho’. It is truly a landmark enterprise aimed at bringing fans closer to the national team, and creates a new revenue source for both CBF and Brazilian football. Up until now, it includes the following figures:

• Over 160 licensed products;

• 8 licensing agreements;

• 23 commercial offers currently under review;

• Expectation of 500 licensed products until the 2018 World Cup;

• A specific line conceived for children and centered on the ‘Canarinho’ mascot, in addition to other products targeted to all age groups.

7.3.4 ‘WE ARE FOOTBALL’ – BRAZILIAN FOOTBALL EVOLUTION WEEKFor the second year running, CBF’s headquarters hosted the ‘We are Football’ – Brazilian Football Evolution Week event. Following what happened in its first edition, the purpose remained to focus on debating opportunities and potential options for further fostering Brazilian football’s development.


The 2017 season also introduced the second edition of the official virtual football games tournament of the Brazilian Football Confederation – the e-Brasileirão tournament. Played in Konami’s “Pro Evoluton Soccer (PES)” game platform, it brought together major Brazilian brands, in addition to enhancing the general public’s interest in virtual football games. Some significant figures were achieved in this edition, such as:

• 51% increase in enrolled players in comparison with the previous year;

• 3 sponsors – Pepsi, Brahma 0% and Konami;

• TV viewer ratings exceeding 1 million spectators in the final match, which was broadcast by SporTV television network.

The 2016 edition Champion Guilherme “GuiFera” Fonseca of Santos FC was also the category’s world Champion. In 2017, the tournament was won by Cruzeiro Esporte Club representative Henrykinho of only 16 years of age, who defeated the Atlético Clube Goianense player 4-0 (aggregate score of both final matches).

The event, which featured several pannels and debating forums on current and key issues relating to Brazilian football, reached significant results:

• 28 lectures from distinguished speakers in their expert fields;

• Over 545,000 online content views;

• Considerable international repercussion resulting from stories published in media outlets of 9 countries;

• Intensive national repercussion following publication of 72 articles and 28 videos.

*Some of the key speakers included Tite, Fabio Capello (former AC Milan, Real Madrid, England and Russia National Team manager), Marcelo Bielsa (former Argentina and Chile National Team manager), Omar Ongardo (FIFA Football Regulatory Director), Kimberly Morris (FIFA TMS Head of Integrity and Compliance), Emily Shaw (FIFA Women’s Head of Governance and Leadership), Catalina Navarro (UEFA Events Head of Commercial Operations), Damian Willoughby (Senior Partnership VP at Manchester City FC), David Dein (Former Arsenal VP and Premier League Cofounder), Richard Law (Head of Football at Arsenal FC), Tom Greenwood (Head of Partnerships and Activations at the Premier League), Arnon de Mello (Latin America VP at the NBA), Laura Froelich (Global Head of Content and Sports Partnerships at Twitter) and Lorena Soto (Women’s Football Manager at Conmebol).

7.3.5 2017 E-BRASILEIRÃO MARKETING

7.4 COMMUNICATIONS 7.4.2 SOCIAL MEDIA

7.4.1 NATIONAL TEAM NUMBERS

This department carries out its efforts through its press office and always in accordance with institutional guidelines set forth by CBF’s Board of Directors. It undertakes its actions in a transparent and rigorous manner that are in tune with communications departments of all major corporations.

In general terms, it backs CBF officials in the challenging duty of conveying to football fans and supporters of CBF-organized competitions and, particularly, the Brazil National Team, the reliability and certainty that decisions and other measures which impact Brazilian football are only taken after in-depth discussions and assessments are made. These include participation of experts and, moreover, an internationally renowned consultancy firm in the current administration. In short, all measures are taken aimed at ensuring the public that the organization is committed to its mission, as already mentioned in this report.

It therefore has an established operating procedure whereby its personnel carries out their efforts according to clear and objective purposes.

Communications advisors’ work cover the following ranks of Brazilian National Teams:

• Main Brazil National Team; • Brazil Women’s National Team;• Youth rank teams.

Moreover, the department has staff that is specifically trained to cover actions and institutional issues, in addition to those in charge of updating and surveilling daily homepage content as well as the organization’s social media accounts. Their concerning contact information can be found at said channels.

Fully aware of the significance social media plays in marketing strategies in business nowadays, CBF develops and makes available comprehensive digital content targeted to its supporters.

Employing the combined index measure to gauge numbers, which is an indicator that encompasses every major social media outlet, CBF managed to reach nearly 18 million and a half followers. This figure places CBF at the top spot among every other national team in the world, according to IBOPE numbers.

Facebook repeated its previous year’s performance and kept its place as the

main network in said index, accounting for 65% of overall numbers. This can be explained particularly due to the fact that CBF employed a strategy using Facebook as its platform to broadcast live matches of the Brazil National Team, which reached an average rating of 303,297 spectators, in addition to overall 31,323,022 interactions in the page. Furthermore, the ‘#Seleção Brasileira’ (‘Brazil National Team’) hashtag was the most popular among all hashtags created by the department, amounting to 686,759 publications.

Please find below figures broken down per platform:

In this chapter section, we will disclose key figures that convey efforts not only pertaining to the department at hand, but also to the organization as a whole and its collaborating staff.

During the 2017 season, in accordance with IBOPE statistics, main national team matches registered an overall viewer rating of 114 million spectators. At

2018 World Cup Qualifier match times, it accounted for viewer ratings exceeding, in average, 50% of televison sets running in Brazil.

In regards to fan and spectator attendances, average stadium attendances at national team matches accounted for 47,579 spectators.

Other key social media also registered significant increases: Twitter exceeded 4 million followers (1,374,364 interactions) and Instagram accounted for over 2 million followers (17,312,428 interactions).

In examining another important index, which concerns overall homepage visits to http://www.cbf.com.br, we find that these figures exceeded 30 million visits in 2017 and averaged 480 stories posted each month.


Source: Communications Department/CBF

PER PLATFORM

FACEBOOK (FANS)

TWITTER (FOLLOWERS)

INSTAGRAM (FOLLOWERS)

YOUTUBE (INSCRIBED)

COMBINED INDEX

2016

11,846,880

3,818,154

1,534,880

129,807

17,329,721

2015

8,942,115

3,242,429

960,000

86,520

13,231,064

2017

11,992,013

4,076,075

2,057,910

184,928

18,310,926

In 2017, CBF’s Communications Department carried through Brazil National Team’s first match broadcasts in social media. The Friendship Match, a friendly played against Colombia with full match proceedings donated to Chapecoense, was the biggest highlight. The match reached 29 million people, including 6,3 million views and generated 1 million interactions (likes, comments and shares).

In addition to live match broadcasts in its official Facebook page, CBF introduced an internal framework and carried out training aimed at enabling itself to undertake the entire operating procedure entailing real-time match coverages, ranging from footage recording and TV feed generations, to broadcasts themselves.

In a completely unprecedented and landmark enterprise in the Confederation’s history, two Brazil National Team friendly matches played in Australia were broadcast through technology enabled by the IT and Communications Departments by means of streaming services and CBF TV’s own channel.

• Brazil 0-1 Argentina (09 June) – 6 million views

• Australia 0-4 Brazil (13 June) – 7 million views

7.4.3 LIVE BROADCASTS

Match broadcasts featured famous guest participations, such as sportscaster Nivaldo Prieto and comments by former player Denílson, in addition to those made by the individual still deemed the best football player ever, Edson Arantes do Nascimento – superstar Pelé.


6.3 MILLION VIEWS

1 MILLION

INTERACTIONS

29 MILLION PEOPLE

REACH

Source: IBOPE REPUCOM



Growth in CBF homepage visit numbers

In order to enable a more comprehensive evaluation, we compared CBF’s numbers to those of other major sports confederations worldwide, figures you can see below.

2017

2016

2015

2014

8,513,569

12,964,66230,070,610

25,930,829

1st BRAZIL

18,310,926 11,992,013 4,076,075 2,057,910 184,928

3rd ENGLAND

12,354,371 6,961,036 3,109,225 1,888,996 395,114

2nd MEXICO

18,310,423 11,212,367 5,567,964 1,488,687

32,405

7.4.4 RADIO 7.4.5 PRESS OFFICE

On November 2017, the Communications Department began distributing exclusive content to radio networks all over Brazil through the RadioWeb news agency. From 23 November to 31 December, approximately 50 news bulletins with 19,123 radio insertions were distributed to both AM and FM radio stations affiliated to the agency, thereby signaling an average of 318 radio stations per bulletin. Taking into consideration average durations of 1 minute and 40 seconds per radio story, this enterprise resulted in an overall 478 hours of radio exposure on CBF-related issues.

Radio news coverage comprising 50 stories reached 1,471 radio stations in 1,100 counties. Taking into account host city population figures, the coverage therefore reached 107 million Brazilians.

One of Communication’s cornerstones is engaging with press members. CBF remains dedicated to providing all explanations deemed necessary to both Brazilian and foreign Journalists in regards to the wide host of matters related to the organization, evidently

including the Brazil National Team itself.

In 2017, it sent 10,012 press mailings. In other words, 2,082 more than in the previous year, resulting from 1,317,456 emails sent.

In the nine matches the Brazil National Team played for the 2018 FIFA World Cup Qualifiers, the Communications Department registered 727 companies and issued 13,387 press credentials.



2017

2016

7,93010,012

Comparative graph on press mailings sent

26%+

8IN

NOVA

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TECH

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Innovations should increasingly pervade organizations in both continuous and sustainable ways, aimed at helping to achieve strategic goals. Much more than simply a role or specific department, innovations should be an ongoing process seeking to support all other departments within an organization.

At CBF, the Information Technology Department operates to keep the organization up-to-date with the most efficient and state-of-the-art solutions available in industry markets. Taking into consideration the fact that CBF operates within a highly specific industry, the technology department is oftentimes additionally responsible for developing innovations that meet

the organization’s constantly changing needs.

Consequently, technology’s mission must go well beyond only offering daily operational support, but additionally helping other departments achieve their set out results with enhanced efficiency.

In 2017, certain departments were particularly impacted, such as Competitions, Refereeing and CBF Academy. The same year also introduced a new CBF Intranet, whose goal was to improve internal communications and transparency procedures.

All efforts undertaken had the aim of improving football not only on the pitch, but also outside of it.

INNOVATIONS & TECHNOLOGY 8

134 2017 MANAGEMENT REPORT 13508. INNOVATIONS AND TECHNOLOGY

8.1 INTRANET

2017 signaled the official and definite launching of the new internal interaction Portal among CBF departments. This enables the organization to now communicate with its collaborators in an increasingly efficient manner that complies with the best management and governance practices.

Introduction of the organization’s new Intranet allowed speeding up communications procedures within CBF and disclosing information to all employees in the same way. The aim of this enterprise is to enable each employee to be able to understand, give his or her opinion on and take part of the organization’s management.

It is worth noting that the Intranet also renders possible publication

of regulatory documents drawn up during the Governance, Risks and Compliance (GRC, in Portuguese) project. Disclosing information on internal procedures is of the uttmost importance in enhancing the organization’s Governance.

In addition to HR announcements and news enclosed in communication messages sent, the Intranet allows collaborators to enclose documents, medical reports and other useful documentation.

Employees with authorized profiles also have at their disposal a full collaborator directory featuring contact and department information detailed in a clear and organized manner.


CBF’s technology department developed a Portal specifically for CBF Academy. This portal works as a management platform for CBF, thereby enabling it to manage the number of students enrolled and programs offered as well as allowing for interactions between students.

Additionally, the CBF Academy Portal has a dedicated space for the general public to enroll in available programs, in addition to contacting and searching for information. Through the Portal, CBF Academy’s staff is able to review applications and engage electronically with prospective students.

In addition to keeping and creating full student educational records and

programs (a kind of football academic record), CBF Academy personnel can issue invoices electronically within CBF’s own system, which features its own gateway structure connected with the world’s main credit card institutions.

The portal also features a full e-learning platform that supports the main types of media used for distance learning. Students can send papers, speak with teachers and follow-up on their academic performance. Additionally, it has electronic program attendance forms and includes the option of sending program-related teaching material to students.

8.2 CBF ACADEMY

The new and updated Referee Portal was created following CBF’s introduction of electronic match report forms in 2012. It features previous year’s main technology upgrades and a new way of filling out already state-of-the-art electronic match reports.

All data is validated in a step-by-step process, beginning from referee drafts whose Pre-Drafting unit enables access to the Athlete Registration System, and thereafter including penalty offences, which are included and automatically feed the Competitions System, as well as markers and additional match information such as delays or incidents that need to be reviewed by the ‘Superior Court of Sports Justice’ (‘Superior Tribunal de Justiça Desportiva, STJD).

The electronic match report was restructured taking into account the main standards of use, safety and integration facility. Thus, after filling it out and having the referee validate it, all those participating in the match electronically sign the report, which can be published at CBF’s homepage just minutes after matches are concluded.

These measures ensure safety and transparency to procedures regarding publication of electronic match reports, in addition to speeding up and guaranteeing that the information is trustworthy.

8.3 REFEREE PORTAL

8.4 REFEREEING EVALUATION

Fully integrated with Competitions and Referee Portal systems and using a scientific methodology merged with data analysis software, the referee evaluation system seeks to validate referee and assistant performances in accordance with theoretical criteria taken into account that is the cornerstone of solid refereeing team performances.


Evaluations are carried out using electronic forms which are designed to allow both the reviewer as well as the Refereeing Commission to enclose and have access to each bit of information in a clear and objective way. The 360º evaluation model allows

referees to point out, among potential mistakes commented by the reviewer, their considerations or theoretical assessment using a standpoint other than the reviewer’s, thereby allowing a continuous improvement of the entire process.

Furthermore, the refereeing evaluation system generates a database rendering possible referee rankings (the match team), thereby keeping an updated ranking in each round as well as a final ranking signaling the best referees in the year. Ranking algorithms and scores can be customized, thereby enabling reviewers to make all necessary adjustments, and this data is collected either using the 360º evaluation or resulting from scientific methodology improvements made to the software.

9SO

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Pursuant to what we describe throughout this report, the Brazilian Football Confederation (CBF) has spared no efforts towards reasserting its statutory obligations during the season and treading a path aimed at increasingly creating virtuous cycles. And it will go even beyond. In undertaking much more than enterprises and actions relating to football pitches or merely concerning competitition issues, the organization has additionally legitimated its institutional duties towards people and its target audience. It is safe to say that CBF Social spearheaded the organization’s social and environmental actions and introduced its projects in an instrumental manner throughout 2017.

The projects team travelled the four corners of Brazil to take football and solidarity to thousands of young people. From Belém and Porto Alegre to Florianópolis and Porto Velho, wherever it went, CBF Social showed once again that football can be much more than simply a sport. It can be used as a powerful ally in fighting social inequalities and taking smiles to people’s faces, as well as changing their lives.

The famous football festival, CBF Social’s main event since 2015, continued to visit several cities: Foz do Iguaçu (PR), Rio de Janeiro (RJ), Resende (RJ), Macapá (AP), Araraqara (SP), Curitiba (PR), São Paulo (SP), Brasília (DF), Belém (PA), Fortaleza (CE), Porto Velho (RO), Florianópolis (SC) and Porto Alegre (RS). Nearly 3,000 youngsters attended the events. Activities undertaken brought knowledge and teachings on football to children enrolled in these towns, in addition to conveying important messages on issues related to living in society and understanding sportsmanship.

In each city it visited, the festival invited institutions and organizations that also work hard each year to improve lives of children and teenagers in need. Beach Soccer was another football modality included in the festival. Featuring special events, it was a gateway for young people with Down Syndrome to participate and interact with others, exemplified during the friendly match played between Santos and Corinthians in the beginning of the year.

SOCIAL AND ENVIRONMENTAL

9


Throughout the season, CBF Social also launched two key projects aimed at developing football in Brazil. In Ribeirão Pires in São Paulo State, it kicked off its ‘Brazil Goal Program’ (‘Programa Gol do Brasil’). It is a sports program aimed at empowering local teachers to teach program classes, and whose main end goal is to encourage young people to play sports.

Furthermore, it introduced the ‘Future National Teams’ (‘Programa Seleções do Futuro’) Program in Belo Horizonte in Minas Gerais State, which seeks to foster the development of football among boys and girls aged 6 to 17, taking into special consideration those who study in public schools. In both projects, the methodology applied was developed by CBF Social.

At the same time, CBF Social carried on with activities that are already consolidated and became an overwhelming success at cities that hosted them: the ‘National Team in my City’ (‘Seleção na minha Cidade’). Activities take place in towns where the main national team has matches scheduled and kick-off the week before the match until it effectively takes place. They range from training sessions to empowering local professionals, and additionally, watching national team training sessions and donating match tickets. In addition to promoting the city itself, they seek to increasingly bring together the national team and its fans, particularly underpriviledged children and people who would hardly have the chance to see the squad from up close.

14509. SOCIAL AND ENVIRONMENTAL 144 2017 MANAGEMENT REPORT

9.1 BRAZIL GOAL PROGRAM

At the end of the year, CBF Social wrapped up its activities in stellar fashion following the Brazil National Team training session in Porto Alegre in Rio Grande do Sul State. Around 20 children were given

the opportunity to meet their idols and interacted with Daniel Alves, Neymar, Gabriel Jesus, Philippe Coutinho and the entire ‘Canarinho’ group on the pitch of Beira-Rio Stadium in Porto Alegre.

“It was an amazing season for our project. We were successful in bringing a lot of joy, important lessons on football and virtues for youngsters to take into their own lives and contribute to developing citizens. All those involved in the project are

extremely pleased. I believe we were somewhat able to make a difference in the lives of children and teenagers in our country”. – highlighted the CBF Manager of Technical Development, Social Responsibility and Sustainability Diogo Netto

The social and educational ‘Brazil Goal Program’ (‘Gol do Brasil’) is another CBF Social enterprise that seeks to change realities of children and teenagers’ lives throughout Brazil, and which relies on football as a special tool to educate, develop, muster and foster citizenship responsibilities. To achieve this, its

planning foresees introduction of the so-called ‘Methodology Application Units’ (‘Unidades de Aplicação de Metodologia’, UAM), which follow CBF’s excellence standards in the quality of its rendered services and employ a groundbreaking methodology developed by the Brazilian Football Confederation.

Through an agreement made with the City Hall and supported by the World Trade Center, the Brazilian Football Confederation, by means of CBF Social, launched the pilot program in the beginning of October. The main purpose is to foster and improve access to everyone in regards to football training. The main ‘goal’, both in the medium and long run, is to enable a brighter future for the entire target audience benefitted by the project.

The CBF Secretary General Walter Feldman stressed the project’s significance and justified the choice of the city of Ribeirão Pires as the ‘kick-off’ for the Brazil Goal Project.

“This is a key social responsibility project for CBF and Brazilian football. We sought political players who could carry through this dream. It aims to bring the thrill, excitement and its public experience to enhance the project. This can become a cornerstone in transforming society’s reality into democratic and inclusive experiences that look after everyone’s common good”.

Around 200 primary school students from public schools will benefit from the program. These children and teenagers aged 6 to 13 study in the Comendador Abdalla Chiedde, Professor Antonio Lacerda Bacellar and Manoel Baptista da Silva schools which are located close to the Centro Esportivo Vereador Valentino Redivo Sports Center in Vila Gomes, spot that was picked to host classes.

Ten-year old Mayer Geovanna of E.M. Abdalla Chiedde public school is one of the students who will participate in the project and was excited about the experience:“I am very excited to be a part of this activity that is so meaningful, because I really like football and it is an opportunity to learn more about the sport”.

The sports program featured CBF-trained professionals and employed methodology that was developed by the confederation. They were selected following a training program attended by 60 people who work with sports in the city. Preparatory classes were carried out using theoretical and practical content, and at the end of the program, CBF picked six people who became in charge of developing the Brazil Goal Program in the city, which will be supported by CBF Social personnel.

Methodology The program methodology includes an invaluable worth for Brazilian people, since it seeks to translate the five-time World Champion side’s football DNA into an accessible language for sports educators throughout the country. Its development was based upon previous experiences and features the support of renowned Brazilian football professionals, in addition to best practices aimed at introducing content and teaching children and teenagers in a unique and entertaining way.

In addition to attendances by the city’s politicians and people who work in education and sports industries in the city, the program launch featured important Brazilian sports personalities. CBF’s Secretary General attended alongside the organization’s personnel and institution representatives associated with football, such as the Vice President of the São Paulo State Football Federation (FPF) Fernando Solleiro; former Brazil National Team player and FPF Vice President of Integration Mauro Silva; former Corinthians player Atalia; Head of Esporte Clube Corinthians Paulista Oldano Carvalho; WTC representative Lilian Bomeny, and UNIESP President Fernando Costa.

146 1472017 MANAGEMENT REPORT 09. SOCIAL AND ENVIRONMENTAL


In addition to coach Tite himself, Brazil National Team Coaching Staff members directly participated in developing the methodology, using their efforts to make its application as straightforward as possible for future professionals, thereby bringing together sports and education.

With the intent of enabling CBF to supervise teaching units more closely and in a standardized way, goals/indicators that will be the cornerstones for a focused management and aimed at attaining effective results were defined.

Below, you can find some of the main project goals:

Indicators

The program foresees introduction of a system enabling those involved with the project to follow-up on Brazil Goal students’ performances. A digital platform personally developed by CBF will allow students and teachers to enroll, with the aim of keeping up with children’s academic indicators – classes and classroom attendance,

for instance, in addition to information concerning their community and family lives. Moreover, technical and medical evaluations as well as those relating to life skills will be regularly applied. Furthermore, CBF will offer specialization programs to teachers and class supervision, whether in person or using cameras set up on the pitch.

Staff developed primers for each specific target audience group, with the aim of introducing content in a customized manner:

• Community Primer;• Educator Primer; • Parent and Guardian Primer; • Child and Teenager Primer;

Primers were devised with the goal of engaging those who will use CBF Social’s methodology daily in the Brazil Goal Project, so as to enable their effective and significant participation in a continuous manner in Brazilian football’s efforts and taking into account its specific traits.

All project instructors shall attain the CBF Social Methodology Training certificate.

To reach all regions within Brazil until the end of the project’s third year, aimed at ensuring that the CBF Social Methodology is disclosed throughout the entire Brazilian territory in the upcoming years.

To graduate 80% of students who began the program at CBF Social Methodology Application Units starting from the first class, until they turn 17.

To achieve 80% student attendances during the academic year, thereby ensuring effective learning throughout the process.

To double the number of students in the second operating year at CBF Social Methodology Application Units.

To ensure that teachers receive 80% or higher evaluations in classes they teach, thereby proving students’ high standard levels.

Its goal is to install youth rank centers aimed at developing the ‘Future National Teams Program’ (‘Programa Seleções do Futuro’) within the entire Brazilian territory. The following are specific goals pertaining to the project:

• To provide favorable conditions for playing football;

• To contribute to the improvement of students’ physical and motor skills, with the intent of enhancing football-related athletic performances;

• To develop activities aimed at contributing to the training and quality of students’ lives (self esteem, social interactions and integration, and health).

Target audience: children and teenagers aged 06 to 17, particularly those enrolled in public schools.

The main difference is the fact that the Ministry of Sports is in charge of managing the program, and the program foresees that cities wishing to participate must send their bids showing that they meet program requirements.

The Ministry launched the program in Belo Horizonte in the beginning of October, which was attended by CBF’s Secretary General Walter Feldman and CBF’s Manager of Technical Development, Social Responsibility and

Sustainability Diogo Netto. Planning set forth that the “Future National Teams” Project kick off initially as a “pilot” project featuring 14 core centers spread throughout 11 cities. The public bidding notice for the next stage was published the day after the launch in the ‘Federal Official Journal’ (‘Diário Oficial da União’, DOU), introducing required criteria that cities nationwide must meet in order to participate in the program. Core centers are expected to be installed and in full operating conditions by the first semester of 2018.

9.2 FUTURE NATIONAL TEAMS PROGRAM

151

This program’s goal and targets are similar to those that have already been mentioned, such as those pertaining to the “Brazil Goal” Project. Its end purpose are social and inclusive sports-related criteria. In other words, to enable those benefitted to expand their mindsets, their joy in playing sports and acquiring new sports leisure habits.



9.3 NATIONAL TEAM IN MY CITY

Whenever the Brazil National Team plays at home, everybody knows what happens: the ‘National Team in My City’ (‘Seleção na Minha Cidade’) project in the city hosting the match. In 2017, the cities of São Paulo and Porto Alegre hosted the project, particularly due to the 2018 FIFA World Cup South American Qualifiers. Thus, children

from local social projects especially benefitted from several enjoyable moments and were able to get up close and personal with their idols in a national team training session. Additionally, they comprised teams’ entrance protocol on the pitch and received sports and life lessons from CBF Social.

São PauloThe project certainly enabled an unforgettable experience for nearly 200 children hailing from social projects and São Paulo State football-teaching schools who participated in the Football Festival at Pacaembu Stadium. Applying sports and citizenship lessons, activities undertaken at the stadium brought together football and professional and educational activities.

Much like what took place on the pitch, CBF Social also organized the Beach Soccer Festival in the city of São Paulo. Partnering with the São Paulo State Beach Soccer Federation, activities carried out on the sand of the ‘Edson Arantes do Nascimento Educational Sports Center’ (‘Centro Educacional e Esportivo Edson Arantes do Nascimento’), also known as ‘Pelezão’, assembled nearly 100 youngsters. In the

last ‘National Team in My City’ campaign, 50 children who partook in the festival were given free entrance to watch the Brazil vs. Paraguay match for the 2018 FIFA World Cup South American Qualifiers at Arena Corinthians Stadium, and additionally, 25 others were invited to take part of the teams’ entrance protocol on the pitch.

Following its national team commitments, the CBF Social program made a stop in Rio Grande do Sul State’s capital city to use football as a means of bringing a great deal of teaching and leisure to young people from social projects and public schools in the city.

Activities took place throughout three days, beginning on Tuesday and concluding on Thursday, match day. The project featured three 2002 World Cup champions, who participated as Porto Alegre City ambassadors: former defenders Lúcio and Anderson Polga, in addition to physical trainer Paulo Paixão. In the “scoreboard” of activites undertaken, several “goals” were scored:

• 20 children from social projects and public schools in the region attended the Brazil National Team training session held at Beira-Rio Stadium.

• 100 children from social projects actively engaged in the CBF Social Football Festival undertaken at Beira-Rio Stadium;

• 45 children participated on the pitch entering rehearsal at Arena Grêmio Stadium for the Brazil vs. Ecuador match, in addition to the entrance itself on match night;

• 70 children, teenagers and public school and social projects teachers from Porto Alegre were given free entrance to watch the match at Arena Grêmio Stadium.

Porto Alegre


9.4 CBF SOCIAL AT THE GREEN CUP

The competition played by teams hailing from the North and Center-West regions of Brazil, in addition to Espírito Santo State, also features a wide host of activities aimed at raising environmental awareness, such as recycling, essay contests on environmental subjects, football classes for underpriviledged children and activities intending to reduce carbon emissions.

During a meeting held at the Ministry of the Environment, CBF submitted social and environmental activity results undertaken at the 2017 ‘Green Cup’ (‘Copa Verde’), which greatly impacted the organization and encouraged an increasing environmental awareness on all those involved.

“We are taking our first steps towards what will become a new sustainable development model. Thanks to the Green Cup, Brazil is now an example in sustainable competitions” - stated the Minister of the Environment Sarney Filho.

Ministry of the Environment and CBF representatives, including CBF’s Secretary General in addition to politicians and businessmen, attended the meeting focused on disclosing tournament-related social and environmental results.

The aforementioned results were only achieved thanks to people who carried out key activities in this season’s edition of the competition, those being the following:

In addition to significant results achieved, CBF is directing its efforts towards enabling the Green Cup to receive the ISO 20121 compliance certification already in 2018, which is the management regulation related to sustainable events.

• Full competition carbon emission compensation (265 tons of CO2) by planting 1,450 tree seedlings in Anapu in Pará State. This measure will recover one hectare of riparian forest in the agroforestry system. Seedlings were planted by local grassroots farmers and also thanks to a partnership made with the ‘Amazon Research Institute’ (‘Instituto de Pesquisa da Amazônia’, Ipam), ‘Green Initiative’ (‘Iniciativa Verde’) and Anapu City Environmental Office;

• 2.57 tons of PET plastic bottles recycled, corresponding to 100,000 less PET plastic bottles on the streets. At competitions, fans exchanged bottles for tickets or donated them. This action helped make football a sustainability awareness tool and increased the population’s access to stadiums;

• Reaching record zero waste emissions at the Paysandu vs. Luverdense match played at Pará State’s Olympic Stadium in Belém, also known as “Mangueirão”. Fifty garbage collectors from three cooperatives participated and collected the following: 410 kg of paper; 230 kg of PET plastic bottles; 2 kg of aluminum; 20 kg of plastic; 600 kg of cardboard and 180 kg of waste – amounting to 1,262 kg. During the entire Green Cup, 2,682 kg of waste was collected by 120 garbage collectors and 7 cooperatives. This enterprise helped stop 19 tons of carbon and 51,6 m3 of water emissions;

• In partnership with the MMA, the ‘Akatu Institute’ (‘Instituto Akatu’) held conscious consumption workshops with over 30 children from the ‘Propaz Institute’ (‘Fundação Propaz’) of Belém in Pará State during the final match;

• CBF Social carried out football classes featuring sustainability content and using games with environmental subjects;

• The “Vivo Trophy” was given to the winners (champions Luverdense and runners-up Paysandu). This award was planted at these clubs’ headquarters: it is actually a tree biomass seedling from these teams’ regions;

• Delivery of the FSC Trophy, which was built in wood that is internationally certified by the Brazilian Forest Management Board;

• Distribution of 1,000 ecological cups at the final match, resulting in approximately 60 kg fewer plastic cups;

• Essay and video contests on the “Flying River” subject. Forty-five schools from Belém, the Federal District and Mato Grosso State participated, reaching 6,400 students in all. Both winners received awards at the final match.


9.5 EVENTS

CBF Social and UN Seminar

Featuring a thought-provoking debate at CBF’s headquarters in Rio de Janeiro, the ‘Social Responsibility, Crime Prevention and Safeguarding of Young People within the Sports Setting’ (‘Responsabilidade Social, Prevenção ao Crime e Proteção de Jovens no Contexto do Esporte’) Seminar came to an end on 31 October, stressing football’s ability to transform young Brazilians’ lives.

Carried out by CBF Social in partnership with the United Nations Office on Drugs and Crime (UNODC), the event addressed the sport’s role as an agent of peace and safeguarding of children and teenagers, particularly those in social vulnerability conditions.

The 1994 World Cup winner Jorginho inaugurated the ‘Challenges and opportunities for life skills programs within the youth sports setting’ (‘Desafios e oportunidades para programas de habilidades para vida no contexto esportivo juvenil’) pannel, which also featured an exchange of ideas with professor Cyro (responsible for introducing the ‘Let’s Do it’ (‘Vamos Nessa’) methodology at Vidigal’s Olympic Village, and the CBF Technical Development, Social Responsibility and Sustainability manager Diogo Netto. During presentation of social project ‘Ball Ahead’ (‘Bola na Frente’), Jorginho talked about his inspirations and desire to change the reality of Deodoro, the community he grew up in the Rio de Janeiro suburbs.

“I knew I could change my community. And thanks to God, I was able to carry out this project. Football changed my life, but I was a top-level performing player.. How can it change the lives of those who fail to reach that level? If we bring together social sports, culture and professional development, we can do a lot for youth. I will keep working and dreaming about a better country and city”. – Jorginho declared.

Lastly, the Seminar discussed the need to guarantee a “Full-time safeguarding of children and teenagers in sports”. Hosted by Carlos Nicodemos of the Former Counselors and Youth Counselors Association, the last debating board featured participations from Augusto Souza (UNICEF), Thais Toledo (ACESSOSS), Fernando Fernandes (social assistant at Santos Football Club), Maristela Eleutério (social assistant at Botafogo Futebol e Regatas Club) and judge Siro Darlan.

10GO

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AND

COM

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In this chapter, we will disclose the main achievements made by the Brazilian Football Confederation in regards to its governance, as well as related procedures guiding its suitability with respect to the broad regulatory and legislative framework that apply to its operations. In order to do so, though, we need to provide an overview on the setting concerning some very significant current issues.

In previous years, particularly effective the beginning of CBF’s current office, the organization began directing its efforts towards enabling a profound and comprehensive transformation in its governance, in addition to its compliance setting, thereby establishing four key cornerstones:

• Loyalty to its institutional mission;• Internal and football upgrading; • Enhancing transparency; • Appreciating democracy – keeping an open dialogue with society;• Introducing best governance and compliance practices;• Awareness of its social and environmental duties.

Guided by said principles and seeking efficient and long-lasting results, CBF hired international consultancy firm EY (Ernst & Young) in 2015, when its framework was mapped out as well as two ongoing internal procedures. The organization then used this assessment to focus on enhancing the Governance, Risks and Compliance Program (GRC).

GOVERNANCE AND COMPLIANCE 10 Aimed at placing the organization at

a management standard level among Brazil and the world’s top sports organizations, 52 projects were picked for the organization to execute. All of them had the common ground of featuring the best corporate and sports market practices, in accordance with the GRC methodology applied to major worldwide organizations by said consultancy firm.

That was how CBF’s GRC Program came about, consisting of a progressive deployment procedure supported by measures recommended by EY and approved by CBF’s Presidency and Board of Directors.

In light of this, the organization devised a project deployment plan foreseeing a schedule that would meet CBF’s other priorities in leading and coordinating Brazilian football. Consequently, they were drawn up into a “roadmap” that envisaged structuring actions followed by others specifically aimed at upgrading the organization.

The Program was conceived pursuant to three cornerstones that are executed in unison, with the purpose of enabling the organization to achieve its strategic goals with enhanced efficiency, transparency and safety in light of the risks and threats pertaining to the football business market.

160 2017 MANAGEMENT REPORT 16110. GOVERNANCE AND COMPLIANCE

10.1 GOVERNANCETogether with EY’s recommendations, the organization’s governance projects also significantly contributed to the Reform Committee. In tune with democracy and participation premises defined by the current CBF office, the Committee that was introduced by CBF on February 2016 began discussions aimed at pinpointing the main current challenges towards developing football in Brazil, and from there on, devised proposals to leverage its virtuous transformation cycle.

Comprised of 18 members from several football-related fields, the Committee divided its members into various task forces constituted of individuals possessing extensive knowledge on the following study subjects: Code of Ethics, By-Laws Reform, Football Calendar, Women’s Football, Club Licensing and Registration, CBF Social and Football Globalization.

Administrative Control Best Corporate Governance practices

We can highlight the following outcomes that resulted from this broad evaluation and discussion procedure spearheaded by the Committee in regards to the subjects addressed herein:

• Redrafting of CBF’s By-Laws, whereby its organizational framework was redefined and independent governance bodies were created;

• Developing the Integrity Program’s cornerstones, which we will discuss in section 10.2 – Compliance.

Redrafting of the By-LawsOn 23 March 2017, spurred by the GRC Program and recent FIFA and CONMEBOL requirements, a General Administrative Assembly was called up to pass the new CBF By-Laws and Brazilian Football’s Code of Ethics and Conduct. The following were the main novelties included in these documents:

Enhancement of Legal Frameworks

Ellectoral College Upgrade

Aimed at settling conflicts that may arise resulting from interactions between entities that comprise the football system more efficiently, such as federations, clubs and intermediaries, the ‘National Dispute Resolution Chamber’ (‘Câmara Nacional de Resolução de Disputas’, CNRD) was established. This chamber is empowered with jurisdiction, coordinating, performance and operating powers, as well as procedures and sanctions set forth in accordance with specific regulations passed by CBF’s Board of Directors.

Having settled over 80 cases throughout 2017, the CNRD has become one of Brazil’s main alternative arrangement dispute resolution chambers.

Moreover, CBF appointed the ‘Brazilian Refereeing Arbitration Center’ (‘Centro Brasileiro de Mediação de Arbitragem’, CBMA) to perform as an appeals and independent legal body inside the sports setting that can lodge appeals pursuant to a final ruling made by the CNRD.

Changes made to the By-Laws enabled more Brazilian clubs to comprise the organization’s electoral process. Twenty clubs playing in the Brazilian Série B Championship were added to CBF’s electoral college Board of Diretors. Previously, only state federations and Brazilian Série A Championship clubs were allowed to vote.

Voting system rules included in the organization’s new By-Laws comply with criteria set forth under current Brazilian legislation.

The following corporate governance practices were introduced:

• Three signatures required on every agreement the organization signs;

• Bids required for CBF to acquire goods and hire services;

• Establishment of CBF’s Executive Management Department (CEO);

• Redifining of the CBF General Secretary’s attributions;

• Inclusion of the Governance and Compliance Department, among other statutory departments;

• Establishment of new management and governance frameworks, such as:

> Board of Administration;

> Ethics Commission, whose efforts are based upon the Code of Ethics and features investigation and court bodies;

> Corporate Governance and Compliance Board;

> Club Licensing Commission;

> Finance, Budget and Sponsorship Commission;

> Reporting Channel.


16510. GOVERNANCE AND COMPLIANCE 164 2017 MANAGEMENT REPORT

10.2 COMPLIANCE

Developing Deployment Foundations

Corporate Governance and Compliance Board

Compliance measures are not restricted simply to meeting regulatory criteria, but instead concern a more comprehensive process.

The role carried out by compliance is also seen by CBF’s Board of Directors as a means of safeguarding any potential adverse event that can negatively affect the organization. In other words, a set of risks to which it is exposed. Bearing this in mind, CBF sought to develop a risk management framework aimed at helping it to further support said role.

Starting with these premises, it proceeded to conceive the CBF Integrity Program, which was designed so as to envisage not only aforementioned frameworks (Code of Ethics, Ethics Commission and Reporting Channel), but particularly focused on duties related to risk management.

Consequently, the organization began to learn from the process as it carried it through and believes that reaching the desired high level compliance level results obligatorily from introduction of a sound risk mitigation method. The program’s full enterprises and actions are described hereinafter.

This was initially a set of activities and methods conceived with the purpose of leading CBF towards meeting the full regulations, laws and legislative criteria that apply to its line of work. Thus, the organization firstly established what it proceeded to call the ‘Compliance and Inspection Bodies’ (‘Órgãos de Fiscalização e Conformidade’), which are the following:

I – Corporate Governance and Compliance Board;

II – Ethics Commission;

III – Football Ombudsman Department and Reporting Channel.

We will include an overview on each of these frameworks hereinafter:

Also established in 2017, the Corporate Governance and Compliance Board takes on a leading role among all other governance bodies. It features permanent members, those being the Secretary General, Chief Executive Officer and Heads of the Legal and Governance and Compliance Departments; it has the powers to assemble whenever it wishes and take its matters to the entire CBF Board of Directors whenever it deems such actions necessary or urgent. As established under its internal By-Laws, its regular meetings take place quarterly.

The Head of Governance and Compliance reports both to Top Management as well as the Board itself. He is in charge of submitting important issues from his department for the collegiate to discuss and appraise.

Pursuant to the organization’s By-Laws, the Board and its members “shall pursue excellence in corporate governance and compliance, with the aim of reinforcing and creating the best possible conditions for developing Brazilian football”. This shall be accomplished using the following principles as its main cornerstones:

• Disclosure;

• Fairness;

• Accountability;

• Compliance.

To give a better understanding as to how the Board communicates with other frameworks, please see the illustration below:

Reporting Framework between Board, Governance Department and Top Management

BOARD MEMBERS• Chief Executive Officer;• Secretary General;• Head of the Legal Department;• Head of the Governance and Compliance Department.

Reports to the Board

Supports Top Management

CORPORATE GOVERNANCE AND COMPLIANCE BOARD

GOVERNANCE AND COMPLIANCE DEPARMENT

PRESIDENCY CHIEF EXECUTIVE OFFICER’S OFFICE

SECRETARY GENERAL’S OFFICEBOARD OF DIRECTORS


The Brazilian Football Code of Ethics

As established under the organization’s By-Laws, it is an “autonomous and independent body with powers to appreciate, investigate, prosecute, try and punish ethical-related violations”, and is governed by the Brazilian Football Code of Ethics and Conduct.

TRIAL CHAMBER

PRESIDENT

INVESTIGATION CHAMBER

This relates to the device established to govern and define procedures according to ethical standards pertaining to those who work in Brazilian football. The document was widely discussed and put into public debate in 2016 by the Reform Committee, and furthermore, was developed by said task group. The Legal Department also reviewed and concluded it, receiving final approval at the March 2017 General Assembly.

Some of the main features of the Code include its scope and compliance with anti-corruption legislation. Moreover, it addresses issues related with relationships with Public Administration, conflict of interests and practices that uphold match integrity in CBF-organized competitions, including, additionally, sanction deadlines enforced by the Ethics Commission.

As aforementioned, the Ethics Commission became an independent statutory body whose president is chosen by CBF’s Board of Directors and serves a 2-year term.

It is comprised of two chambers: Investigation and Trial, and each one shall be constituted of three members.

It is worth noting that CBF provided due training related to said code to its collaborators upon its introduction.

The following persons answer to the Code of Ethics:

• CBF (President, heads of departments and employees)

• State Federations and their members

• Football Clubs and their members

• Leagues and their members

• Elected, appointed or hired officials

• Players

• Coaches and Coaching Staffs

• Referees and assistant referees

• Medical field professionals working in football

• Intermediaries and match organizers

• Clients

• Suppliers

• Business partners

Ethics Commission

President of the Brazilian Football Ethics CommissionCounselor: CARLOS RENATO DE AZEVEDO FERREIRA

President of the Investigation ChamberCounselor: GLADYS REGINA VIEIRA MIRANDA

Counselor of the Investigation ChamberANTONIO CARLOS DE AGUIAR DESGUALDO

Counselor of the Trial ChamberMARCO AURELIO RAVANELLI KLEINAMILAR FERNANDES ALVES

Inaugural GCC meeting.

1

Reporting Channel

169

The channel was established and opened to the general public (both to CBF employees as well as the general Brazilian public) after the Brazilian Football Code of Ethics was passed. It was conceived as an online platform that can be accessed both through the eticadofutebolbrasileiro.com.br homepage address as well as CBF’s own homepage.

The page enables all those interested to browse the Code of Ethics, roster of Ethics Commission members and form for detailing any kind of situation that can be deemed a code violation. Moreover, interested parties can follow-up on different procedural stages relating to their complaints submitted in the platform.


It is important to stress that complaints made are only available to those in charge of examining them, that is to say, Ethics Commission members. Access is restricted and the Ethics Commission carries out its efforts with the highmost level of confidentiality and safeguarding of potential complainants. As of 2017, the Ethics Commission has received over 80 ethically-related violation complaints.

Aimed at stopping harmful events from taking place, foreseeing challenges that threaten its strategic goals and supporting Top Management decisions, the Governance and Compliance Board introduced the Corporate Risks Management procedure.

Deployment of the corporate risks management procedure within the organization was undertaken carefully, with a first operational stage featuring self-assessment interviews with heads of departments concerning their views on key risks most commonly related to issues under their responsibilities.

The risks management procedure was based on the COSO (Committee of Sponsoring Organizations of the Treadway Commission) methodology and ISO 31.000 Standard, which set forth risks management system requirements.

Risk Management

First Training Program on the Brazilian Football Code of Ethics and Ethics Channel (19 April 2017).

Quality Management System ISO 9001:2015 Certified

From there on and aimed at supporting the risk management procedure, a dedicated tool was developed in conjunction with the consultancy firm’s assistance to consolidate, rank and monitor corporate risks. It was called the risk monitoring dashboard.

The tool enables an enhanced performance of compliance roles. The organization can use it to filter and find out key risks, which, in turn, guide the most significant procedures to which said risks relate to. Thus, the dashboard is able to swiftly point out where improvement efforts should mostly be directed.

Corporate Risks Management procedure – CBF-introduced model


1 2 3 4 5SETTING AND INITIAL RISK PERCEPTION

CBF RISK METHODOLOGY

RISK IDENTIFICATION

EVALUATION AND PRIORITIZATION

MONITORING AND REPORTING

Initial examination carried out by

the Governance and Compliance

Department on the main

corporate risks CBF faces

Drafting of a Corporate Risk Management

Policy

Self-assessment interviews with

each CBF head of department and filling out of Risk

Forms

Assessment on CBF’s risk

appetite and risk prioritization in the Criticality

Matrix

Conception of a monitoring and reporting Dashboard to the Corporate

Governance and Compliance

Board

Aimed at keeping track of enhancement efforts during its current term of office, at the same time CBF kicked off proceedings aimed at getting itself ready for and introduced a quality management system that was certified by an INMETRO-accredited independent body in compliance with ISO 9001:2015 standards.

We must point out that following the entire preparatory stage undertaken with the support of an expert consultancy firm (Qualimetria), CBF and the operating departments pertaining to the management system scope were initially evaluated through an internal and independent audit that firstly assessed CBF’s suitability regarding standard requirements. At a later stage, the organization was evaluated again in an audit undertaken by the certifying body, after which point it was finally granted the certification.

The CBF quality management system encompasses the organization’s main activities, which are under the responsibility of the following departments:

• Competitions;

• Registration and Transfers;

• Refereeing.

Risk dashboard screens


Among many other benefits rendered, introducing ISO regulation international standards enables and accredits CBF to attain the following:

• Sounder procedures – taking advantage of opportunities to minimize risks;

• Resourceful and dedicated personnel for each activity – with clear assignments on what they must do and how to do it (ethical conduct);

• Suitable information systems – technology and efficiency.

All improvements made resulting from introducing the quality management system come together to achieve one of CBF’s main goals, in other words, to enhance the quality level of its services rendered to its ‘clients’ who, in regards to the ISO standard application, were deemed national clubs.

In order to measure and follow-up on results of CBF’s quality management system, the following activities were specified:

• Monitoring procedure-related performance indicators;

• Introduction of a methodology aimed at measuring client satisfaction;

• Customer surveys aimed at finding out client insights;

• Assessments and efforts in key issues related to survey results.

The purpose of the standard is to ensure clients that the company will develop its products and services in a recurring and consistent manner.

10.4 CONCLUSIONIt is safe to say that the Governance and Compliance Department was established with the purpose of “supporting other CBF Departments in fulfilling Compliance requirements, in addition to enhancing the organization’s Governance”. After looking at activities undertaken, we can point out significant results achieved already in its first year of operations.

• A closer relationship with CONMEBOL and FIFA’s Compliance departments, which acknowledged the significance of CBF’s Compliance Program;

• FIFA and CONMEBOL funds secured, such as those relating to 2014 FIFA

World Cup legacy, FIFA Forward Program and CONMEBOL’s Programa Evolución funds;

• Progress achieved in regards to the deployment status of the Governance, Risk Management and Compliance (GRC) Program, which increased from 46% to 83% during the period;

• CBF participation at the FIFA Compliance Summit at the FIFA headquarters in Zurich, Switzerland, in which it introduced CBF’s Compliance and Risk Management system as a model to be used by other Brazilian football federations.

Overview on the SGC CBF and its scopeORGANIZATION

SETTING

CLIENT REQUIREMENTS

SGQ RESULTS

STAKEHOLDER NEEDS AND EXPECTATIONS

TOP MANAGEMENT PROCEDURES

HR, IT, LEGAL, FINANCIAL AND QUALITY SUPPORTING PROCEDURES

REFEREEING PROCEDURES

COMPETITIONS PROCEDURES

REGISTRATION AND TRANSFER PROCEDURES

The CBF Head of Governance and Compliance speaks at the FIFA headquarters in Zurich, Switzerland, during the FIFA Compliance Summit (October 2017).

Lastly, you will find below an overview table on the deployed management system’s procedure and cycle – as well as its scope – in compliance with ISO 9001:2015.

11FI

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In this chapter we will disclose the main financial information pertaining to the Brazilian Football Confederation for the 2017 fiscal year. We must point out that all financial information herein was audited, verified and ratified with no exceptions by an independent auditing company. Moreover, the organization restates its transparency in keeping audited financial information and its explanatory notes in its official website for public inquiries.

CBF continues to sustain and fulfill its institutional role in fostering and supporting the development of Brazilian football, which can be substantiated through the information contained herein.

Figures endorse overall investment increases in three key organization cornerstones: national teams, competitions organized and support of its affiliated organizations, the State Federations (in charge of fostering local football and organizing regional tournaments).

Furthermore, the regional ‘Green Cup’ (‘Copa Verde’) tournament received a significant 67% increase in financial aid.

The Confederation remains steadfast in its mission to bolster Brazilian football, enhance doping control operating procedures, refereeing and train managers throughout the country. Hereafter, we will describe each of the main financial aspects, which will be further detailed in the related sections:

1) Assets

2) Revenues

3) Revenue Forecast

4) Total Expenditure

5) Direct Football-related Costs

6) Operating Expenditures

7) Taxes

8) Cost and Expense Forecast

9) Operating Income and Net Surplus

10) Liquidity and Debt

FINANCIAL INFORMATION 11

From 2010 to 2017, CBF’s total assets increased 287%, a R$ 656,538 million rise in 7 years resulting from a consistent 20% average increase per year. This is a significant figure when taking into account a near 63% inflation rate in the same period.

176 2017 MANAGEMENT REPORT 17711. FINANCIAL

11.1 ASSETS

Source: Financial Department – sums in thousands of Reais.

Total Assets – Annual Base

900,000

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

228,706

2010

310,782

2011

362,844

2012

456,359

2013

527,326

2014

625,507

2015

764,841

2016

885,244

2017

17911. FINANCIAL

11.2 REVENUES 11.2.1 OPERATING REVENUE

CBF’s total revenues, accounting for everything the organization levied in the year, reached the sum of R$ 590,217 million. This meant a 9% cut when compared to the total revenue in 2016, which resulted particularly from low foreign currency exchange rates, especially when considering that CBF’s

sponsorship agreements are backed by foreign currencies, and moreover, in accordance with accounting norms, said agreements endowed to the current financial year pursuant to the exchange rate in the first business day of the year.

Operating revenues can be divided into 5 main groups, pursuant to the table below.

Total revenues can be split into operating revenues and financial revenues.

When looking at operating revenues stratification, we find that the main total revenue positive variance in comparison with 2016 pertains to National Team Match box office Revenues, which recorded a R$ 13,406 million increase, thereby signaling a 31% rise. This growth is directly related to the national team’s 2018 World Cup Qualifier performance, which resulted in thousands of supporters attending stadiums. In the last match of this competition, it reached record Brazilian football box office earnings: with a R$ 15,118 million profit, the Brazil National Team broke the record set by Atlético-MG in its 2013 Copa Libertadores championship match, which had raked in R$ 14,176 million.

With respect to sponsorships, we find that this variance is considerably tied with unfavorable foreign currency variances at the beginning of 2017, due to the fact that part of CBF’s sponsorship agreements are backed by foreign currencies, and in accordance with accounting norms, said agreements are endowed to the current financial year pursuant to exchange rates in the first business day of the year. It is worth noting that the advertising sports market is still undergoing harsh impacts related to Brazil’s economic crisis. Nevertheless, CBF managed to retain somewhat of a stability in regards to sponsorship agreements.




Total Revenues – Annual Base

700.000

600.000

500.000

400.000

300.000

200.000

100.000

2017

590,217

2016

646,972

OPERATING REVENUE(in thousands of Reais)

SPONSORSHIPS

BROADCASTING AND COMMERCIAL RIGHTS

BOX OFFICE AND NATIONAL TEAM PRIZE EARNINGS

LICENSES, TRANSFERS AND REGISTRATIONS

OTHER

TOTAL

% OF TOTAL REVENUE

60%

16%

10%

3%

4%

100%

% OF TOTAL REVENUE

64%

18%

7%

2%

2%

100%

2017

353,379

95,888

56,748

15,766

22,691

544,472

2016

410,988

117,264

43,342

15,172

10,912

597,698

VAR2016 -2017

-14%

-18%

31%

4%

108%

-9%

2017 Sponsorship Revenue Breakdown

Broadcasting and Commercial Rights

Sponsorship

Brazil National Team Operating Revenue Figures and Competitions

In the table below, we find that CBF’s total operating revenues relate to two main operating scopes: National Team and Competitions. The Brazil National Team alone accounts for 81% of total operating revenues, reaching the sum of R$ 442,507 million in 2017.

Revenues resulting from CBF-organized competitions account for 15% of total figures, or R$ 79,099 million.

Total sponsorship revenues faced a 14% drop when compared to 2016. This decrease results from lower foreign currency exchange rates in the beginning of 2017, in comparison to the beginning of 2016. As aforementioned, part of CBF’s sponsorship agreements is backed by foreign currencies. Said agreements, in accordance with accounting regulations, are endowed to the current financial year

pursuant to exchange rates in the first business day of the year.

It is important to note that CBF does not have any government-related sponsor, that is to say, both sponsors specifically related to the Brazil National Team as well as those who solely support tournaments originate from private organizations.

The second budget item that most generates revenues encompasses commercial and TV broadcast agreements for Brazil National Team matches, in addition to CBF-organized competitions.

Total figures pertaining to this item account for 18% of the organization’s

overall operating revenues. When examining the item broken down by segment, we find that competition-related commercial and broadcasting rights stand for 53% of this item’s overall figures, whereas sums related to the Brazil National Team account for remaining numbers: 47% of total revenues.

The sponsorship revenue group consists of revenues resulting from Brazil National Football Team sponsorship revenues as well as those pertaining to sponsorship of CBF-organized tournaments. It is worth pointing out that the organization does not receive funds or sponsorship from public organizations.

In 2017, sponsorship revenues reached the sum of R$ 353,379 million, accounting for 65% of total operating revenues, whereas sums related solely to the Brazil National Team constituted 95% of total sponsorship figures and 63% of the organization’s total operating revenues.

2017 OPERATING REVENUE(in thousands of Reais)

SPONSORSHIPS

BROADCASTING AND COMMERCIAL RIGHTS

MATCHES PLAYED

OTHER

TOTAL

COMPETITION

12,927

50,406

-

-

79,099

NATIONAL TEAM

340,277

45,482

56,748

-

442,507

OTHER

175

-

0

22,691

22,866

TOTAL

353,379

95,888

56,748

22,691

544,472


Broadcasting and Commercial Rights Revenues – Annual Base



140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

2017

95,888

2016

117,264

Box Office and National Team Prize Money Earnings

The Brazil National Team’s participation in 2018 FIFA World Cup Qualifier matches and friendlies generated box office revenue, agreement sums and competition prize money earnings. Said figures are detailed in this revenue line.

In 2017, the main Brazil National Team played 11 matches, and 6 of them were World Cup Qualifiers and 5 were additional friendly matches. Of these 11 matches, 7 were played overseas, of which 3 were qualifiers and 4 were friendlies. The Brazil National Team’s high level performances in matches played, in addition to the

CBF management’s also efficient role in regards to match organization and pricing strategies enabled, as previously mentioned, a record box office profit of R$ 15,1 million in a single match.

In all, the organization levied R$ 56,748 million in 2017, posing a significant increase when compared to 2016, at which time the sum reached accounted for R$ 43,342 million. This growth resulted particularly from high attendance numbers in Brazil World Cup qualifier matches as well as the increasing number of matches played overseas in comparison with 2016.

This negative variance relating to broadcasting rights is considerably associated with low Dollar exchange rates in 2017, which accounted for a 19% negative variance in regards to 2016 as well as due to the fact that part of CBF’s broadcasting rights agreements are backed by said foreign currency.

The Séries B, C and D editions of the Brazilian Championship, in addition to the men’s and women’s Brazil Cup and Women’s Brazilian Championship, comprise sums pertaining to this budget line. Brazilian Série A Championship broadcasting rights are not included here. It is also worth noting that Série A broadcasting rights are negotiated directly between clubs

and the broadcaster holding the TV rights.

In 2017, we can highlight CBF’s role in leading negotiations with the broadcaster network holding the rights. Therefore, this enabled a significant increase in Brazil Cup participation and prize money sums, which is the country’s most democratic and accessible competition. Adding up sums of each competition stage and championship prize money earnings, the winning squad can rake in up to R$ 67,300 million, which accounts for a 425,78% increase when compared to prize money offered to the 2017 champions, which at that time received R$ 12,800 million.


Brazil Cup Champions Earnings – 2017/2018 Comparative Graph


60

50

40

30

20

10

0

43,342

Box Office and National Team Prize Money Earnings – Annual Base

2016 2017

56,748

2017 2018

12.8 67.3


425%+

Other

11.3 REVENUE FORECAST

11.4 TOTAL EXPENDITURE

This revenue group is comprised of sums originating from CBF Academy programs, Brazil National Team Museum box office revenues and fines, among others. The CBF Academy is particularly accountable for this

budget line’s growth, which reached the sum of R$ 4,896 million in 2017, thereby standing for a 208% growth in comparison with 2016, at which time figures accounted for R$ 1,589 million.

In 2018, CBF expects greater stability coupled with an increase in the organization’s total revenues, particularly due to it being a World Cup year as well as Copa América for the Women’s National Team, in addition to the exchange rate’s stabilization. Decreases in foreign currency exchange rates mostly impact sponsorship revenues, since part of the agreements are backed by foreign currencies.

It is worth reassuring that CBF has been actively engaging in marketing and activation strategies alongside sponsors, with the aim of increasingly showing the significance and potencial of the Brazil National Team brand, in addition to tournaments the organization promotes.

National team box office revenues and prize money earnings should experience an increase when taking into account the fact that the national teams will play important tournaments.

11.2.2 FINANCIAL REVENUE

On the other hand, in 2017 financial revenues reached R$ 43,428 million, posing a 12% fall in comparison with 2016, when figures totalled R$ 49,294

million. This negative variance results especially due to the SELIC rate drop, thereby generating a decreased financial return for investments made by CBF.

CBF’s total expenditure reached the sum of R$ 539,512 million in 2017. This posed a 11% drop in comparison with 2016 total expenditures. Total expenditures are comprised of football-related costs and other expenses, as can be seen in the graph below where we compare

2016 and 2017. In spite of decreases in total expenditures, football-related costs increased when compared with the sum of costs and operating expenses. In 2016, costs accounted for 60% of said expenses, whereas this percentage climbed to 61% in 2017.

Thus, revenues resulting from participations, prize money earnings and box office revenues should be greater in comparison with 2017.

Additional revenues are expected to undergo substantial increases, since CBF will receive FIFA and CONMEBOL funding

to develop Brazilian football through the Financial Assistance Program.

Taking into account the context at hand, the organization will carry on focusing its efforts aimed at keeping its finances sound, as described throughout this report.

This near R$ 63,739 million drop can be explained particularly due to the R$ 39,022 million exchange rate variations and occasional incidences of INSS-related lawsuits that took place in 2016. CBF endowed R$ 12 million to pay said contingencies, in addition to R$ 8 million in financial expenditures tied to the INSS fine.

Costs vs. Expenses – Annual Base



350,000

300,000

250,000

200,000

150,000

100,000

50,000

0

192,039 183,66

60,0219,407 62,841 64,830

178 0

288,172 281,709

COSTS OPERATING EXPENSES

FINANCIAL EXPENSES

OTHER EXPENSES

TAXES

2016 2017

11.5 DIRECT FOOTBALL-RELATED COSTS

Sums accounted for as direct football-related costs can be split into three groups:

When looking at the 3 groups, direct football-related costs reached the sum of R$ 281,708 million in 2017, signaling a 2% cut when compared with the previous year, at which time total figures accounted for R$ 288,172 million.

Football cost decreases in comparison with 2016 can be explained mostly due to the fact that the Brazil National Team played only one competition in 2017, namely the 2018 FIFA World Cup Qualifiers, in addition to playing few friendly matches. In 2016, in turn, Brazil National Team-related costs increased resulting from its participation at the Copa América Centenário played in the United States, the Rio Olympic Games and a greater number of World Cup Qualifier matches.

In examining groups, we find the following:

BRAZIL NATIONAL TEAM:

Currently, CBF keeps and manages a total of 8 national teams, those being the following:

• Men’s: Main, Olympic, U-20, U-17, U-15;

• Women’s: Main, U-20 and U-17.

The “Brazil National Team” group is used to account for costs with every “Brazil National Team”. It consists of CBF outlays relating to: coaching staff, delegations, airfare, meals, lodging, administrative costs related to the national teams department and other items deemed necessary for national team operations and development at competitions, and preparatory friendly matches played during the year.

COMPETITIONS:

The second costs group concerns disbursements for competitions that are mostly comprised of expenditures with refereeing, doping control exams, air and land travel, as well as lodging costs for CBF-organized competitions.

FOOTBALL DEVELOPMENT:

The third costs group is used to record contributions made towards developing football in Brazilian States. It consists of funds transferred to Federations for operating expenses aimed at fostering development of Regional Football in Brazil, pursuant to article 12 of the CBF By-Laws. This group also includes costs pertaining to Granja Comary and supporting bodies and departments.


1BRAZIL

NATIONAL TEAM

2COMPETITIONS

3FOOTBALL

DEVELOPMENT

1 2

3

Football Costs – Annual Base


350,000

300,000

250,000

200,000

150,000

100,000

50,000

281,709

20172016

288,172

Costs per Group – Annual Base


150,000

100,000

50,000

0

73,907 73,836 84,939

122,934147,272

2016 2017

66,994

BRAZIL NATIONAL TEAM FOOTBALL DEVELOPMENTCOMPETITIONS

11.5.2 COMPETITION-RELATED COSTS

11.5.1 BRAZIL NATIONAL TEAM-RELATED COSTS

When we look at cost groups, it is easy to see that the main one concerns the Brazil National Team. In 2017, it amounted to R$ 122,934 million, corresponding to 44% of the organization’s football-related

costs during the period, or 23% of total operating revenues in 2017. As described previously, CBF is in charge of 8 national teams, including the main ones as well as youth rank, men’s and women’s squads.

The ‘Competitions’ group relates to the second biggest cost group, accounting for outlays in the sum of R$ 84,939 million. This posed 30% of total football-related costs and equals 17% of the organization’s total operating revenues in 2017. In the same year, CBF promoted and organized 16 tournaments, 2 more than in the previous year, at which time 1,920 matches and one virtual football games tournament took place.

Costs pertaining to Brazilian Séries C and D Championships reached R$ 62,057 million, which correspond to 73% of competition expenditures. Revenues generated from both of these tournaments and resulting from broadcasting rights equaled R$ 6,190 million or 10% of the sum CBF invested in the Séries C and D.


Revenues vs. Costs – Competitions


135,000

90,000

45,000

0

124,240

79,099

REVENUE COST

We came to important conclusions after comparing gross earnings with football-related costs. Direct costs with tournaments exceeded corresponding revenues. In other words, we found a deficit amounting to nearly R$ 45,141 million.

Costs per National Team – 2016/2017 Comparative Graph

Source: Financial Department – sums in millions of Reais.

100

80

60

40

20

0

96

MAIN NATIONAL TEAM

99

14 13

YOUTH RANK NATIONAL TEAMS

33

WOMEN’S NATIONAL TEAMS

15

2016 2017

11.5.3 FOOTBALL DEVELOPMENT COSTS

As outlined before, the “Football Development” group encompasses outlays aimed at organizing state championships and Granja Comary as well as for supporting bodies and departments. In 2017, this

figure reached R$ 73,836 million, corresponding to 26% of the organization’s football-related costs. When compared with 2016, this budget line introduced a 10% increase.

1) Encompassing both taxes as well as related benefits, the “Personnel Expense” group showed for a 10% increase in comparison with 2016. This percentage is a direct result of collective labour disputes. It is important to point out that expenses relating to the National Teams department and supporting bodies and departments personnel for CBF’s main activities are left out of this budget line, since they were included in the “Football-related Costs” group.

2) Administrative expenses recorded a cut and are comprised of the groups submitted below:

A. General and Administrative – Correspond to general expenses related to property management, utilities and general services provided by supporting departments;

B. Legal entity/Contractor professional services – Correspond to expenses related to professional services, such as the following: accounting consultancy services, audits, consultancies, legal fees and services and information technology services, besides other expert service providers;

C. Marketing and activations – Correspond mostly to activation-related expenses, operations, intermediation and general expenses related to national team and competition-related marketing and advertising activities.

3) Taxes and levies disclosed above relate specifically to taxes resulting from the organization’s operating expenses, such as IPTU and IPVA, among others. The decline in this expense group concerns INSS-related lawsuits.

In compliance with the applicable legislation, the Brazilian Football Confederation is subject to collection of a wide host of taxes and levies, such as the Legal Entity Income Tax (IRPJ), Social Contribution on Net Income (CSLL) and Contribution to Social Security Funding (COFINS), among other taxes and levies inherent to CBF’s scope of operations. This also takes place due to the fact that the organization does not use public funds of any kind whatsoever, as aforementioned.

Adding up all taxes and levies, CBF contributed with R$ 93,389 to public coffers throughout the 2017 fiscal year.

Tax and levy-related expenses registered a slight fall when comparing 2017 and 2016. We found a 10% negative variance, resulting mostly from occasional INSS-related lawsuits, as aforementioned.

11.7 TAXES

11.6 OPERATING EXPENDITURES





OPERATING EXPENSES

WITH PERSONNEL

ADMINISTRATIVE

TAXES AND LEVIES

TOTAL

2016

55,636

119,171

17,233

192,039

2016

61,137

118,880

3,549

183,566

#

1

2

3

GROUP

INCOME TAX

SOCIAL CONTRIBUTION

OPERATIONAL TAXES AND LEVIES

COFINS

SOCIAL CHARGES

TOTAL

2016

20,790

7,493

17,233

34,558

23,780

103,854

2017

23,454

8,545

3,549

32,831

25,010

93,389

#

1

2

3

4

5ADMINISTRATIVE EXPENSES

GENERAL AND ADMINISTRATIVE

LEGAL ENTITY/CONTRACTOR PROFESSIONAL SERVICES

MARKETING AND ACTIVATIONS

TOTAL

2016

53,461

32,516

33,194

119,171

2017

46,404

35,455

37,021

118,880

#

A

B

C

This expense group relates to disbursements necessary for keeping administrative personnel (“backoffice”) who are in charge of ensuring CBF’s operations. All expenses not directly related with football were taken into account under this budget line.

Operating expenses incurred totalled R$ 183,566 million in 2017. When compared with 2016, we can see that these expenses remained practically stable with a R$ 8,473 million or 4% negative variance, in spite of accumulated inflation rates of 2,95% in the period, showing how the organization kept its operating efforts up and running.

11.8 COST AND EXPENSE FORECAST

In regards to cost and expense forecasts, the organization expects its overall expenditures to increase in 2018, since there is a greater number of competitions in the national teams’ schedules next season, including the World Cup in Russia and Copa América for the Women’s National Team. Moreover, CBF should be focusing its efforts on cutting specific operating expenses affected by introduction of new management mechanisms,

and additionally, reviewing supplier agreements and securing sponsorship partnerships. Therefore, we expect a stabilization to take place with an increase trend in regards to football-related expenses and a slight decrease in operating expenditures.

Consequently, in 2018 CBF expects operating results to amount to approximately R$ 42 million.

In 2017, results before tax assessment amounted to R$ 82,704 million, signaling a 15% increase in comparison with 2016, at which time figures reached R$ 72,004 million.

Using all figures herein as a baseline and, lastly, the R$ 50,704 million

budget surplus recorded for the 2017 fiscal year, the Brazilian Football Confederation reached an accumulated R$ 593,758 million surplus. This accumulated surplus contributes towards the organization’s soundness, as can be seen in-depth in the following thread.

Although revenues fell 9% due to aforementioned reasons, CBF also recorded a drop in its expenditures when compared to 2016 (R$ 63,738 million or 11%), particularly financial expenditures, which accounted for a 84% decline.

There was also a signficant fall in interest rates, leading to a 12% decrease in CBF financial revenues. Moreover, the organization adopts strict policies in regards to its investments.

Nevertheless, exchange rates underwent overall beneficial impacts amounting to R$ 2,315 million.

Thus, the organization’s financial result in 2017, a key item comprising operating results, was a positive R$ 36,336 million operating profit in comparison with a negative R$ 10,726 million operating result in 2016, standing for a 439% increase. This variance can be explained mainly due to exchange rate variations.

11.9 OPERATING INCOME AND NET SURPLUS

In examining its 2017 financial year, CBF recorded a R$ 50,704 net surplus, as opposed to R$ 43,721 million verified in 2016. This posed a 14% increase.




GROUP GROSS INCOME

INCOME DEDUCTIONS – COFINSNET INCOME

FOOTBALL-RELATED COSTSGROSS SURPLUS

OPERATING EXPENDITURESFINANCIAL RESULT

OTHER REVENUES AND EXPENSESRESULT BEFORE TAX ASSESSMENT

INCOME TAX AND SOCIAL CONTRIBUTIONFISCAL YEAR SURPLUS

2016597,678-34,558563,120-288,172274,948-192,039-10,727

-17872,004-28,283

43,721,107

2017544,472-32,831511,642-281,709229,933-183,56636,337

082,704-31,999

50,704,397

GROUP

FINANCIAL EXPENDITURES

FINANCIAL REVENUES

EXCHANGE RATE VARIATIONS

TOTAL

#

1

2

3

2016

-20,998

49,294

-39,022

-10,727

2017

-9,407

43,428

2,316

36,337

11.10 LIQUIDITY AND DEBT

The current liquidity ratio shows the organization’s liquidity in the short-term, whereas the general liquidity ratio denotes economic liquidity in the long run. Generally speaking, ratios above 1 show that there are funds available for liquidating short and long-term obligations.

Taking into account figures introduced herein, we can conclude that funds available for liquidating long-term obligations in 2017 fell 6%, although they remain at levels deemed satisfactory. On the other hand, the current liquidity ratio shows that CBF enhanced its ability to liquidate its short-term obligations, should this be necessary.

The general debt ratio measures ratios of total assets pertaining to the company that is funded by creditors. In general terms, the higher this ratio is, the higher the amount of third party funds that are being used to generate profit.

General and Current Liquidity Ratio Result – Annual Base


Source: Financial Department

12

10

8

6

4

2

0

2.33

GENERAL LIQUIDITY

2.48

18.28

CURRENT LIQUIDITY

6.89

2016 2017

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