Financial Statements 2021

LETTER FROM THE PRESIDENT
The last two years will forever be marked in the history of mankind by the fight
against the pandemic caused by Covid-19. Like the rest of the world, Flamengo faced one
of the greatest challenges in our history. As we close 2021 and analyze the results of the
year, we can be sure that the word that best describes this period is OVERCOMING.
We started 2021 in an atypical way, still involved with the competitions that had been
paralyzed the previous year. Like other international tournaments, the 2020 Brazilian
Championship was extended until February, and the 2020 Olympic Games were finally held
in Tokyo, both without the presence of fans. Despite the efforts of the entire world
community, the pandemic continuously affected the planet with different variants that took
turns throughout 2021.
The sports segment continued to be impacted by the limited presence or even total
absence of fans, a scenario that improved throughout 2021 and is much more optimistic in
these first months of 2022. Inevitably, part of our revenue was impacted by the absence of
fans in the stadiums. Nevertheless, thanks to the efforts made by our teams and to the
strength of Nação Rubro-Negra, we grew strongly in commercial revenues (marketing,
sponsorship, licensing, etc.), reaching R$1.1 billion in gross annual revenues, an
unprecedented figure in the Brazilian sports club market.
Thanks to these results, we were able to maintain our strategies of strengthening the
brand and increasing competitiveness, following up on important investments related to the
modernization of our facilities, innovation, digitization, production of content and technical
qualification of our soccer squad, not only through the acquisition and resigning of top
athletes, but also with the investment in our academy – seven athletes developed at the
Club were promoted to the main team during the year and another 16 academy athletes
were called for the first time to the line-up of the main team.
The recent investment in the implementation of the hybrid turf pitch at Maracanã and
CT George Helal, as well as its new lighting system and new equipment for sports
performance, are proof that the Club seeks to achieve international standards of excellence
in all areas. Additionally, it is worth noting that, in 2021 alone, R$ 190 million were paid for
the purchase of players' federative rights, which shows that the investment in sports
performance is further increasing.
On the soccer fields, after winning our Eighth Title of Campeonato Brasileiro in 2020,
referring to the championship that ended in February 2021, we were consecrated as two-
time champions of Supercopa do Brasil and won our 37th Campeonato Carioca. We even
advanced to the finals of Copa Libertadores, the continent's most important competition.
The recurrence with which we are reaching the Libertadores finals and the top positions of
Campeonato Brasileiro indicate that we are on the right track and, at the same time,
it motivate us to continue improving as we always want to honor our anthem and “win, win,
win”.
In the Olympic and Paralympic Games held in Tokyo, Flamengo had a historical
participation. The two gold medals and one silver medal won by gymnast Rebeca Andrade
and canoeist Isaquias Queiroz filled our eyes with tears and our red-and-black hearts with
joy and pride! In addition to them, Flamengo's Olympic sports were represented in Tokyo
by a total of ten people, including athletes and members of technical committees. Flamengo
was also present at the Paralympic Games, with three athletes and a coach, which only
reinforces our pride.
Also historical was the performance of the red-and-black basketball in 2021, winning
all competitions it participated: Carioca, NBB, Super 8, and Champions League. All these
achievements were crowned at the beginning of this year 2022, becoming the two-time
world champions.
Aided by the sports success of recent years and supported by our passionate fans,
we have reinforced our position as the largest media platform in South American soccer
and one of the largest in the world, with more than 982 million interactions on the main
platforms. In addition to consolidating FlaTV as one of the three largest club channels
worldwide, with more than 6.5 million subscribers, we also launched our paid streaming
channel, FlaTV+, to bring Campeonato Carioca broadcasts to fans, reaching more than 60
thousand subscriptions.
It is also worth noting that the ESG actions carried out by Flamengo received
enormous recognition. We were awarded this past year by the “Play For a Cause” platform
as the Brazilian club with the greatest social engagement during the peak of the pandemic
in 2020.
In 2021, we reinforced these actions with several projects, among which we

highlight:
Nação Solidária Campaign, with the distribution of 22,000 food baskets and meal
tickets, in addition to kits for access to treated water, masks, and hand sanitizer in more
than 150 communities in Rio de Janeiro;
Recicla Nação, which destined eight tons of solid wate for recycling and whose income
was entirely reverted to pay for meals for homeless people in five Brazilian capitals;
Pé de Gol, an environmental education initiative, through which we planted ten
seedlings of native Atlantic Forest species in a degraded area for each Flamengo goal
in Campeonato Brasileiro 2021, contributing to the environmental recovery of the
Marapendi Canal;
Jogaremos Juntos, an educational project through sports, which trained about 100
educators who lead social projects, impacting more than 2,000 children and young
people in the communities of Rio de Janeiro;
Sangue Rubro-Negro, encouraging the voluntary donation of more than 4,000 donors
and the consequent 20% increase in blood donations to Hemorio.
Moreover, the Club has made an extensive offset of its carbon footprint and is on
the way to being one of the few “carbon neutral” sports sector players in the world.
At the institutional level, the Club continues to be strongly engaged in actions directly
linked to the strengthening of the sport, such as the discussion on the formation of a soccer
club league, the debate in the National Congress regarding the new General Sports Law,
the end of matches on FIFA dates, and the firm positioning in the search for improvement
of sports products, particularly Brazilian soccer.
In a year of great uncertainty regarding the “return to normalcy”, we followed the

example of our athletes and exceeded our own targets, reaching a historical turnover for a
sports association in Brazil and raising the Club’s Equity to almost R$ 200 million.
By submitting our 2021 Financial Statements, we are certain that we are fulfilling
our commitment to generate changes in sports and increasingly consolidating the
sustainable management model, carrying out actions that promote the growth of sports in
our country, with positive effects for society as a whole.
RODOLFO LANDIM
PRESIDENT OF CLUBE DE REGATAS DO FLAMENGO
EXECUTIVE SUMMARY
2021 2020
Performance of Men’s Soccer Team
Copa Libertadores da América Final Round of 16
Campeonato Brasileiro 2nd Place Champions

Copa do Brasil Semifinals Quarterfinals
Other Financial and Operational Performance Indicators
Number of Supporter’s Club

60.902 50.392
Members
CBC Ranking Position (Olympic
1º lugar 3º lugar
Sports)
Gross Revenue (R$ million) 1.082 669
Surplus/(Deficit) (R$ million) 177,6 (106,9)
Net Operating Debt
(R$ million) 263 480
Adjusted Ebitda Margin 1 (%) 36% 21%

Cash and Cash Equivalents (R$
127 51
milhões)
In the 2021 season, the Club won the Campeonato Carioca and Supercopa do
Brasil, in addition to reaching the finals of Copa Libertadores and second place in
Campeonato Brasileiro, surpassing the sports performance projected for the period for
budgetary purposes. The performance in Campeonato Brasileiro also marked the fourth
consecutive year in which the Club surpassed the mark of 70 points, an unprecedented
achievement in the country, which reinforces the strong position in the competitive scenario
of Brazilian soccer. In basketball, the Club won all competitions that it participated in 2021,
of which can be highlighted the seven-time NBB championship, the two-time Super 8
championship, and the two-time Americas championship.
In the other Olympic Sports, the great historical achievement was our participation
in the Tokyo Olympics, with one silver and two gold medals, with gymnast Rebeca Andrade
and canoeist Isaquias Queiroz. Five other athletes also participated in the modalities of
swimming, artistic gymnastics, and canoeing, in addition to professionals in technical
1
The Ebitda Margin is obtained by dividing Ebitda by the club's Net Revenue. The Adjusted Ebitda Margin takes into account
the effects of the postponement of the 2020 Campeonato Brasileiro, partially played in the fiscal year 2021, as detailed in the
disclaimer.
5
committees. The Club also reached first in the general ranking of the Brazilian Club
Committee (CBC), ranking first in seven modalities.
The gradual return of fans to the stadiums as of the third quarter of 2021, combined
with the participation in the finals of Copa Libertadores, provided for the beginning of the
recovery of the number of fans with an annual variation of more than 10 thousand club
members (19.6%).
Despite the loss of matchday revenue as a result of games without or with reduced
number of fans, the Club reached the highest gross revenue in its history, even after
adjusting the revenues related to the 2020 Campeonato Brasileiro. The strong recovery in
revenue combined with responsible management of operating costs allowed the Club to
obtain an Adjusted Ebitda Margin of over 35% for the first time since 2017 (a time when the
Club was still investing much less in its professional squad).
The rapid recovery can also be seen in the indebtedness indicators: the values of
net operating indebtedness, net working capital, and net financial debt are the lowest in the
historical series since 2013. All these indicators have in common the fact that they include
cash as a reducer. The strong cash position that the Club has built up, with a relevant
position in foreign currency (44% of the total), is an important indicator of financial strength
and resistance to crises – hedging the Club from factors such as loss of revenue due to
crises (such as the Covid-19 pandemic), supplier default, or the devaluation of Real.
In view of the scenario, it is worth noting that these exceptional results occured in a
year in which severe economic restrictions were still present due to the pandemic. For
example, in 2021 there was still a retraction in advertising investment in sports, a restriction
in the market for player transactions, a reduction in revenues from social clubs, among
others. Moreover, restrictions on the presence of fans in the stadiums remained in place
for 70% of the season, which was profoundly reflected in matchday revenues, such as
tickets, club members, and complementary matchday revenues.
Even so, the Club had, in 2021, the highest revenues in history in almost all items,
such as marketing, broadcast, and social club. During the pandemic, the Club managed to
create new sources of revenue, improve its commercial and communication processes,
became digital and, today, it is much more prepared to monetize exponentially in a post-
pandemic market, which is eager for quality entertainment. Additionally, cost efficiency and
process improvement have brought cost savings and efficiency gains that will last for a long
period and allow for a healthy and profitable growth in the Club's operations.
In summary, the Club ended the fiscal year 2021 in a stable and secure financial
condition, an essential requirement to achieve the sports goals in a sustainable and
perennial way, which are the raison d'être of the institution.
DISCLAIMER: ADJUSTMENT DUE TO COVID-19
The Covid-19 pandemic impacted the Brazilian (and world) soccer calendar in 2020. Part of the
2020 Campeonato Brasileiro being held in 2021 made the 2020 revenues artificially lower, while
improving the 2021 result. In order to make the numbers between the years comparable to each
other, this Annual Report adopts an adjustment criterion, both in revenues and expenses
exclusively related to the 2020 Campeonato Brasileiro, but accounted for in 2021. In the remainder
of the report, texts and charts will refer to 2021/A and 2020/A when dealing with adjusted values.
6
ECONOMIC MANAGEMENT REPORT
GROSS OPERATING REVENUE
The Club surpassed the R$ 1 billion mark in gross revenues in 2021, earning R$
1,082 MM according to Brazilian and international accounting standards. This level of
revenue is unprecedented in Brazilian soccer and symbolizes the level that the Club has
reached in terms of generating resources. Even if part of this value is due to accounting
part of the 2020 Campeonato Brasileiro in 2021, the 2021/A revenue, of R$ 992 MM,
represents a 31% growth in relation to 2020/A and 4% compared to 2019.
This 4% growth compared to 2019 is important, considering that 2021 was still a
year strongly impacted by the pandemic, both because of matches played with closed gates
or restricted number of fans for most of the year, which resulted in a loss of over 100 million
in matchday revenues, but also due to the fact that, in 2019, the Club had an extraordinary
sports performance, winning both Copa Libertadores and the Campeonato Brasileiro.
Chart 1 – Gross Operating Revenue (R$ million) 2
1.000
278
300
750
222 71
186 176
500 66 241
66 91
105 93 105
91 143
70 73 118 118
250 65
116 115 342 364
65 305 267
212 236
116 121 130
0
2013 2014 2015 2016 2017 2018 2019 2020/A 2021/A
Broadcast Commercial Matchday Social and Others Athletes
2
Revenues are divided into the following groups: (i) Broadcast, which groups revenues from broadcasting rights and prizes paid
for performance in competitions, (ii) (ii) Commercial, which includes income related to sponsorships, licensing, royalties and
incentivized sponsorships, (iii) Matchday, comprising box office revenue, stadium operations and club members program, (iv)
Social and Others, which includes revenues related to the Social Club and other revenues less significant and that do not fit into
the other groups, and (v) Athletes, which groups revenue from the sale and loan of athletes, in addition to a solidarity mechanism.
7
The total variation of the Club's gross revenue hides relevant differences in the
variations of specific components. Matchday revenues, which include box office and
Programa Nação revenues, recorded a 22% drop compared to 2020/A, as expected given
the continuity of the pandemic scenario. On the other hand, there was an increase in all
other lines, with emphasis on Commercial revenues, whose growth of 69% represented a
rupture with the historical growth pattern of this source of revenue (see Chart 2 below). The
composition of Commercial revenues also shows a positive sign, since the growth achieved
in 2021 was largely due to the signing of sponsorship contracts that remain in force in 2022.
This fact shows that the new level of Marketing revenues is sustainable.
Chart 2 – Gross Commercial Revenue (R$ million)
2013 2014 2015 2016 2017 2018 2019 2020/A 2021/A
Also worth of emphasis is the athlete sales line. Despite being considered, in many
analyzes, as a non-recurring revenue, this source of resources is an integral part of the
business model of most Brazilian clubs, including Flamengo. The table below shows, based
on the Club's results over the last three years, that despite being considered non-recurring,
athlete sales was a less volatile source of revenue than the traditional components of
Broadcast, Commercial, and Matchday.
Table 1 – Volatility of Sources of Revenue (R$ million)
Standard Coefficient of
2019 2020/A 2021/A Average
Deviation Variation
Broadcast 342 267 364 324 51 16%
Commercial 105 143 241 163 70 43%
Matchday 176 91 71 112 56 50%
Athletes 300 222 278 267 40 15%
8
OPERATING COSTS AND EXPENSES
Despite the significant increase in revenues, the Club kept its operating expenses
at a similar level to 2020/A, and lower than 2019. This fact demonstrates the Club's ability
to control costs in a responsible way. Chart 3, which presents the evolution of operating
expenses since 2013, shows stability in such expenses after a relevant increase as of 2019.
Chart 3 – Operating Costs and Expenses (R$ million) 3
600
39
122 106 98
400 110 74 94
104
116
200 80 362 380 351
66 71 51
206 231
118 119 110 146
0
2013 2014 2015 2016 2017 2018 2019 2020/A 2021/A
Personnel Expenses Transfer of Athletes

Other Expenses Acc. Adjustment (no cash effect)
3
The accounting adjustment in 2021/A refers to the write-off of intangible assets due to the costs of training academy athletes to
adjust the accounting criteria established by ITG 2003(R1), as per Explanatory Note 7 of the Financial Statements.
9
OPERATIONAL EFFICIENCY
In 2021/A, the Club once again presented good operational efficiency indicators,
reaching the highest Ebitda Margin since 2017. The chart below shows the behavior of Net
Revenue and Ebitda Margin since 2013. It is possible to notice that the Club maintained a
very high Ebitda Margin - above 45% - between 2015 and 2017, a period in which it used
the funds generated by the operation to clean up the Club's financial situation. In 2018 there
was a drop in the Ebitda Margin to the still healthy level of 30%, due to the increase in
investment in professional soccer, thus increasing operating costs. From 2019 onwards,
there was a relevant growth in net revenues, occasionally affected in 2020/A by the
pandemic, returning to an Ebitda Margin above 35% in 2021/A, currently at a much higher
level of revenues.
Chart 4 – Evolution of Net Revenue and Ebitda Margin per year
60%
50%
40%
Ebitda Margin
30%
20%
10%
0%
0 200 400 600 800 1.000
Net Revenue (R$ million)
Maintaining a high Ebitda Margin is a strategic necessity for the Club, as it indicates
that there is sufficient cash generation from its operations to invest in the purchase of new
athletes and infrastructure without the need to incur any debts.
10
The ratio between personnel expenses and recurring revenue is one of the most used
efficiency indicators in the soccer industry. The index is traditionally calculated based on
the Club's recurring revenues - that is, excluding revenues from athlete sales. This revenue
line is an integral part of the Club's business model, which is why Chart 5 presents the
behavior of the indicator calculated according to two methodologies - one considering only
recurring revenues, which allows a comparison with international peers, and the other
considering total revenues, which more appropriately reflects the Club's revenue structure.
The dotted line on the chart represents the 70% limit suggested by the European Clubs
Association (ECA). As can be seen, after a peak in 2020/A caused by the effects of the
pandemic, the Club's index returned to healthy levels in 2021/A.
Chart 5 – Ratio of Personnel Expenses to Net Revenue
70%
2013 2014 2015 2016 2017 2018 2019 2020/A 2021/A

Ratio (Recurring Revenue) Ratio (Total Revenue) Limit
11
RESULT
The accounting result for 2021, of R$ 178 MM, is the highest accounting surplus in
the history of Flamengo. Even considering the effects of the postponement of the
Campeonato Brasileiro, the Club presented a result in 2021/A of R$ 130 MM, after a loss
of R$ 59 MM in 2020/A. This result is on par with the result achieved between 2015 and
2017, a period when the Club was still making much smaller investments in its professional
soccer team, as shown in the chart below.
Chart 6 - Results per year (R$ million)
200
100
-100
2013 2014 2015 2016 2017 2018 2019 2020/A 2021/A
This result was achieved, as already mentioned in the previous items, through a
significant increase in revenues - in particular commercial revenues - combined with the
maintenance of the Club's cost and expense control, maintaining its operational efficiency.
12
Graphic 7 visually shows the source of resources and their destination. It is possible to
notice in the image the relevance of personnel expenses, as is normal in the soccer
industry, which justifies the monitoring of the efficiency index that we explained in the
previous item (Chart 5). Moreover, the Club's good work in maintaining a low level of debt
is evident in the low level of financial expenses in relation to the results obtained. The chart
also illustrates the importance of maintaining a high EBITDA to support amortizations,
which reflect the investment made in the purchase of economic rights and infrastructure in
previous years.
Chart 7 – Uses and Sources (of resources and their destinations)
13
CASH AND CASH EQUIVALENTS
“Cash is king” is an expression in English that literally means “money is king”. But it can be
loosely translated as “what counts is having money in your hand”. And in the business
world, in highly competitive sectors such as sports, those with cash in hand (or, in finance
jargon, “liquid”) are those that are most prepared for opportunities.
Today, Flamengo's cash reserves are equivalent to approximately three months of

operation, which is a healthy policy and which, in addition to allowing flexibility in
investments, also shields the Club from any scenario of economic stress, as we have seen
recently in the case of the COVID-19 pandemic.
Over the last decade, Flamengo has been making strong efforts to rebuild its cash position,
not only in terms of volume of liquid resources, but also in terms of hedge against the
exchange rate. Today, almost half of its cash is available in foreign currency, either in
dollars or euros. This gives the Club security in moments of exchange rate volatility, as
there will be no pressure on payment flows in foreign currency.
Chart 8 – Cash and Cash Equivalents, including Restricted Cash (R$ million)
2013 2014 2015 2016 2017 2018 2019 2020 2021
14
INVESTMENTS
From the financial soundness achieved, it is then possible to direct the surplus generated
by the operation to investments and to the strengthening of the Club, and not just for the
payment of debts and financing. The amount of investments made in 2021, measured
according to the addition to assets, demonstrates a resumption of investments in
infrastructure and, mainly, in youth soccer, after a slight drop in 2020 caused by the
pandemic that severely disrupted the competition calendar of youth soccer.
Investment in economic rights was lower than in previous years, although this effect is not
reflected in cash flow, since, as is customary in the industry for clubs with good financial
credibility, part of the payment of transactions for the purchase and sale of athletes is made
in installments. To illustrate this difference, it is worth noting that Flamengo disbursed R$
190 MM in the payment of economic rights in 2021 (including payments related to new and
old contracts), the highest value in the historical series, despite the relatively low amount
of investment in new signings when compared to the previous two years.
Chart 9 - Investment per year (measured by addition to intangible assets) (R$ million)
300
17
32
5
200 26
13
35
49
23 249
100 27 185
24 16 124
120
11
7 65
30 27 39
0
2013 2014 2015 2016 2017 2018 2019 2020 2021
Player's Rights Youth Development Infrastructure
15
INDEBTEDNESS
The Club's good operating result is demonstrated by the improvement of all
indebtedness indicators that Flamengo uses to monitor its financial-equity situation and, in
general, the 2021 values are the best in the historical series since 2013.
The net operating indebtedness metric is the main indebtedness indicator monitored
by the Club. In the calculation, all liability items that the Club effectively has to pay are taken
into account, including the acquisition of athletes, suppliers, loans, labor obligations and
taxes, excluding amounts of advance payments and provisions for contingencies. From this
amount, cash and amounts receivable from athlete sales and suppliers are deducted.
Operating net indebtedness works as a picture of everything the Club has to pay in excess
of its cash and receivables. The amount reached in 2021, of R$ 263 MM, is the second
lowest in the historical series since 2013, at a level similar to the net operating indebtedness
of 2017.
Chart 10 – Net Operating Indebtedness (R$ million)
600
450
300
150
0
2013 2014 2015 2016 2017 2018 2019 2020 2021
The ratio between net operating indebtedness and EBITDA reached the lowest level
in the historical series, after an increase in 2020/A due to the effects of the pandemic. A
value lower than 1 in the indicator, denoting that the Club's EBITDA is greater than its net
indebtedness, is an important sign of financial soundness.
Chart 11 – Net Operational Indebtedness / EBITDA
2013 2014 2015 2016 2017 2018 2019 2020/A 2021/A
Two other indebtedness indicators also presented the best result in the historical
series. The Net Financial Indebtedness, which reached -R$ 82 MM, indicates that the Club
has substantially more in cash than it has to pay from bank financing, a trend observed
since 2019. The Net Working Capital (NWC), in turn, which compares current assets with
current liabilities, remains negative, but follows a downward trend that started in 2015 and
was only temporarily interrupted in 2020, due to the effects of the pandemic. It is worth
mentioning that the NWC amount is still impacted by the amount of advance payments
received from sponsors totaling R$ 91 MM, which will be offset in the course of fulfillment
16
of the broadcasting rights and sponsorship contracts. If these amounts were disregarded,
the NWC would be positive by R$30 MM.
Chart 12 – Net Financial Indebtedness (R$ million)
150
50
-50
-150
2013 2014 2015 2016 2017 2018 2019 2020 2021
Chart 13 – Net Working Capital (R$ million)
0
-100
-200
-300
-400
2013 2014 2015 2016 2017 2018 2019 2020 2021
17
SHAREHOLDER’S EQUITY
Shareholders' Equity represents the Club's own funds, that is, the funds that,
together with loans, finance the Club's needs to carry out its activities. Thus, it indicates the
book value of the Club. As a non-profit entity that does not distribute dividends, the Club
reversed in 2017, through the surpluses obtained over the last few years, the negative
result in its equity, having reached R$ 199 MM in December 2021. The 2021 result resumes
the trend of equity recovery that has been occurring since 2013, after a brief interruption in
2020 due to revenue losses related to the pandemic, as explained in the previous items.
Chart 14 – Shareholder’s Equity (R$ million)
300
150
-150
-300
-450
-600
2013 2014 2015 2016 2017 2018 2019 2020 2021
18
2022 OUTLOOK
Flamengo's 2022 budget indicates a growth in gross revenue, reaching again a level
above R$ 1 billion. The recomposition of Matchday revenues and the growth of Marketing
revenues, together with the readjustments of the broadcasting contracts, will contribute to
the result.
The 2021 realized and the first 2022 results have been consistent with the planning,
which gives us confidence that the probability of these expectations being confirmed at the
end of the year is high.
Regarding the recent events of the Ukraine - Russia war, the main impacts identified
so far in the macroeconomic scenario were (a) appreciation of the Real against foreign
currencies, (b) increase in input costs, in particular fuels, and (c) increase in base interest
rate of the economy. In the case of Flamengo, none of these impacts are assessed as
particularly relevant. The Club has adequate natural hedge against exchange rate
fluctuations by maintaining an active management of the balance of payments in foreign
currency, always with close amounts “payable” and “receivable” in each quarter. In the case
of the cost of inputs, the highest incidence will be on the costs of international flights,
whether scheduled or chartered, but as they are one-off events, their economic relevance
will be limited. Finally, the increase in interest rates has little impact on Flamengo, since we
currently have a low leverage requirement and also low-cost credit lines due to the financial
market's high confidence in Flamengo's ability to pay.
Regarding the COVID-19 pandemic, there is a perspective of normalization of the

scenario, with low risk of resumption of significant restrictive measures. The beginning of
autumn in Rio de Janeiro has been very calm from an epidemiological point of view, and
the levels of vaccination are comforting, indicating a return to normalcy. In any case, the
Club has been actively monitoring the situation with the authorities and, as already
mentioned, has sufficient capital reserves for possible stress scenarios.
19
Financial Statements
Clube de Regatas do Flamengo
December 31st, 2021
with Independent Auditor’s Report
Financial Statements
December 31st, 2021
Table of contents
Independent auditor’s report on the financial statements ..................................................................... 1
Audited financial statements
Balance sheet ......................................................................................................................................4

Income statement ................................................................................................................................ 6
Comprehensive income statement ....................................................................................................... 7
Statement of changes in shareholders’ equity ...................................................................................... 8
Cash flow statement ............................................................................................................................ 9
Notes to the financial statements ....................................................................................................... 10
2
Independent auditor’s report on the financial statements
To the Management of
Rio de Janeiro - RJ
Opinion
We have examined the financial statements of Clube de Regatas do Flamengo (“Club”), which
comprise the balance sheet as of December 31st, 2019 and the respective statements of income,
comprehensive income, changes in shareholders' equity and cash flows for the fiscal year then ended,
as well as the corresponding explanatory notes, including the summary of the main accounting
policies.
In our opinion, the aforementioned financial statements fairly present, in all material respects, the equity
and financial position of the Club as of December 31st, 2021, the performance of its operations and its
cash flows for the fiscal year then ended, in accordance with accounting practices adopted in Brazil,
applicable to non-profit entities (ITG 2002 (R1)) and sports entities (ITG 2003 (R1)).
Basis for opinion
Our audit was conducted according to the Brazilian and international audit standards. Our
responsibilities, in accordance with such standards, are described in the following section entitled
“Auditor's responsibilities for the audit of the financial statements.” We are independent in relation to
the Club, in accordance with the relevant ethical principles set out in the Code of Professional Ethics
of Accountants and professional standards issued by the Accounting Federal Council - CFC, and we
have complied with other ethical responsibilities according to these standards. We believe that the
audit evidence obtained is sufficient and appropriate to substantiate our opinion.
Emphasis – Adherence to the Program for Modernization of Management and Fiscal

Responsibility of Brazilian Football (PROFUT)
As mentioned in explanatory note 12, the Club have adhered to the Program for Modernization of
Management and Fiscal Responsibility of Brazilian Footbal (PROFUT) in October 2015 and, since
then, has been updating debts and collecting taxes and contributions included in the aforementioned
tax program, in accordance with the conditions set out in PGFN/RFB Joint Ordinance No. 1.340, and
part of these debts, in the amount of R$110,359 thousand, is still in the stage of being approved by
the tax authority.
Management's responsibilities for the financial statements
1
The management is responsible for preparing and farily submitting the financial statements in
accordance with accounting practices adopted in Brazil applicable to non-profit entities (ITG 2002
(R1)) and sports entities (ITG 2003 (R1)) and for the internal controls that it has determined as
necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Club's ability
to continue as a going concern, disclosing, as applicable, matters related to its going concern and
using this basis of accounting in the preparation of the financial statements, unless management either
intends to liquidate the Club or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibility for the audit of the financial statements
We aim to obtain reasonable assurance that the financial statements, taken as a whole, are free from
material misstatement, whether due to fraud or error, and issue an audit report containing our opinion.
Reasonable safety is a high level of safety, but not a guarantee that the audit carried out according to
Brazilian and international audit standards always detect possible existing material misstatement.
Misstatements may arise due to fraud or error and are deemed to be material if, individually or jointly,
they may reasonably be expected to influence the economic decisions of users that are taken based
on these financial statements.
As part of an audit in accordance with Brazilian and International auditing standards, we exercise
professional judgment and maintain professional skepticism throughout the audit. Furthermore:
We identify and assess the risks of material misstatement in the financial statements,
regardless of whether due to fraud or error; we plan and perform audit procedures in response
to these risks; and we obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of non-detection of material misstatement due to fraud is higher than
to error, as the fraud may involve the act of circumventing internal controls, colluding,
falsification, omission, or intentional misrepresentations.
We understand the relevant internal controls for the audit for us to plan audit procedures
appropriate to the circumstances, but not with the purpose of expressing opinion on the
effectiveness of the internal controls of the Club.
We assess the adequacy of accounting policies used and the reasonableness of accounting
estimates and respective disclosures made by the management.
We conclude on the appropriateness of management’s use of the accounting basis of going
concern and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Club's ability to continue
as a going concern. If we conclude that there is relevant uncertainty, we should draw attention
in our audit report to the respective disclosures in the financial statements or include a change
in our opinion if the disclosures are inadequate. Our conclusions are based on the audit
evidence obtained up to the date of our report. However, future events or conditions may cause
the Club to no longer maintain itself as a going concern.
2
We assess the overall presentation, structure and content of financial statements, including
disclosures and even if the financial statements represent the related transactions and events
in a manner consistent with the appropriate presentation objective.
We communicate with those in charge of management regarding, among others, the scope and timing
of planned audit engagements and significant audit findings, including any significant weaknesses in
internal controls that may have been identified during our work.
Rio de Janeiro, March 21 2022
ERNST & YOUNG

Auditores Independentes S.S.
CRC-2SP015199/O-6
Marcelo Felipe L. de Sá
Contador CRC-1RJ094644/O-0
3
Balance sheet
December 31st, 2021 e 2020
(In thousands of reais)
Note 2021 2020

Assets
Current
Cash and cash equivalents 3 127.182 50.988
Restricted cash 3 25.233 14.897
Accounts receivable 4 38.427 11.215
Accounts receivable from players’ transfers 5 77.194 99.624
Inventories 3.391 2.299
Prepaid expenses 17.234 8.928
Others 16.093 10.275
Total current assets 304.754 198.226
Non-current
Accounts receivable from players transfers 4 81.943 -
Judicial deposits 14 52.958 44.184
Investment properties 6 104.911 104.930
Intangible assets 7 308.865 391.533
Fixed assets 8 208.854 201.488
Others 4.342 4.161
Total non-current assets 761.873 746.296
Total assets 1.066.627 944.522
4
Balance sheet
December 31st, 2021 e 2020
Note 2021 2020

Liabilities
Current
Suppliers and other obligations 9 17.676 17.479
Accounts payable from players’ transfers 10 111.756 173.961
Loans 11 39.937 59.625
Taxes and social contributions 12 72.970 54.477
Labor and social obligations 13 31.776 39.153
Advance payments received 15 91.001 149.420
Others 955 950
Total current liabilities 366.071 495.065
Non-current
Suppliers and other obligations 9 10.711 7.136
Accounts payable from players’ transfers 10 92.979 96.470
Loans 11 30.739 -
Taxes and social contributions 12 203.918 207.434
Provision for contingencies 14 117.726 115.533
Advance payments received 15 45.627 1.675
Total non-current liabilities 501.700 428.248
Shareholders equity 16
Equity valuation adjustment 234.033 237.022
Retained surpluses (deficits) (35.177) (215.813)
Total shareholders’ equity 198.856 21.209
Total liabilities and shareholeders equity 1.066.627 944.522
The explanatory notes are an integral part of the financial statements.
5
Income statement
Fiscal year ending December 31st, 2021 and 2020
Nota 2021 2020
Net operating revenue 17 1.025.428 644.093
Cost of social and sports activities 18 (761.610) (614.948)
Gross income 263.818 29.145
Administrative expenses 19 (45.763) (73.769)

Commercial expenses (18.318) (12.198)
Other net operating revenues (expenses) 20 (11.592) (8.792)
Operating income before financial income 188.145 (65.614)
Financial expenses 21 (21.424) (45.293)

Financial revenues 21 10.925 3.985
Surplus (deficit) for the fiscal year 177.646 (106.922)
6
Comprehensive income statement
2021 2020
Other comprehensive income - -
Total comprehensive income 177.646 (106.922)
7
Statements of changes in shareholders’ equity
Ajuste de Total do
avaliação Déficits patrimônio
patrimonial acumulados líquido
Balance as of December 31st, 2019 240.011 (111.880) 128.131
Deficit for the fiscal year - (106.922) (106.922)

Realization of “attributed cost" (Note 16) (2.989) 2.989 -
Surplus for the fiscal year - 177.646 177.646

Realization of “attributed cost" (Note 16) (2.989) 2.989 -
8
Cash flow statement
2021 2020
Cash flow from operating activities
Adjustments to reconcile profit to cash generated by operating activities
Amortization of rights over players 136.898 123.157
Intangible assets adjustment on training of athletes 39.006 -
Depreciation of fixed assets and amortization of other assets 6.065 5.608
Expected provision for doubtful credits 7.470 2.335
Provision for contingencies 2.193 37.925
Financial expenses – interest on loan 6.986 4.900
Financial expenses – monetary correction of taxes payable 6.663 5.173
Other monetary restatements of assets and liabilities (1.815) (1.996)
(Increase) decrease in assets an increase (decrease) in liabilities

Accounts receivable (39.752) 24.665
Inventories (1.092) (634)
Prepaid expenses (8.306) 7.454
Judicial deposits (6.958) (6.701)
Other assets (5.998) 1.930
Suppliers 3.772 (5.980)
Taxes and contributions payable 20.373 (7.026)
Labor and social obligations (7.377) 12.270
Advance payments received (9.397) 28.418
Other liabilities 4 108
326.280 124.684
Interest payment (9.639) (14.272)
Net cash generated in operational activities 316.742 110.412
Cash flow from investment activities

Restricted cash (10.336) 1.853
Payment for the purchase of player’s rights (93.003) (194.667)
Accounts payable from player’s transfers (67.490) 114.908
Accounts receivable from sale of players (59.513) (50.097)
Purchase of fixed assets (13.413) (4.646)
Net cash invested in investment activities (243.755) (132.649)
Cash flow from financing activities

Borrowing 135.246 142.600
Payment of loans (126.075) (131.118)
Payment of taxes in installments (5.964) (9.156)
Cash generated in financing activities 3.207 2.326
Cash and cash equivalents at the beginning of the fiscal year 50.988 70.899
Cash and cash equivalents at the end of the fiscal year 127.182 50.988
Increase (decrease) in cash and cash equivalents 76.194 (19.911)
9
Notes to the financial statements
December 31st 2021
(Values stated in thousands, except when otherwise stated)
1. Operational context
Clube de Regatas do Flamengo (“Flamengo” or “Clube”), headquartered at Avenida Borges de
Medeiros n° 997, Rio de Janeiro, is a non-profit association created with the main purpose of
promoting meetings and entertainment of a sports, cultural, civic and recreational nature, recognized
as of public utility by Law No. 1.516, of November 8, 1967. Flamengo was incorporated for an indefinite
term, with a legal personality distinct from its members, who are not jointly or severally liable for the
obligations contracted by the Club.
The Club has a negative net working capital of R$ 61,317 as of December 31st, 2021 (R$ 296,839 as
of December 31st, 2020). The improvement in relation to the previous fiscal year was mainly due to
the following aspects: (i) increase in cash and cash equivalents in the amount of R$76,194, mainly
due to the increase in receipts of sponsorships and awards; (ii) increase in accounts receivable in the
amount of R$27,212 due to the effect of the new sports equipment licensing contract with Adidas; (iii)
a decrease in accounts payable for player transfers in the amount of R$62,205 and (iv) a decrease in
the amount of advance payments received in the amount of R$14,467.
It is worth noting that the amount of Net Working Capital is still impacted by the amount of advance
payments received from sponsors in the amount of R$91,001, which will be offset in the course of
fulfillment of the broadcasting rights and sponsorship contracts. If these amounts were disregarded,
the net working capital would be positive by R$29,684.
In view of the suspension of the presence of fans in stadiums and competitions due to Covid-19, the
Club had a negative impact on the club members item, with a decrease of R$24,118 during 2021.
There was also a relevant postponement of income from broadcasting rights and awards from 2020
to 2021, due to the postponement of the 2020 Campeonato Brasileiro.
In recent years, the Club's Management has been working on implementing measures to reduce the
need for loans to finance working capital, such as:
Effective expense control and prioritization of investments, effective working capital management
with interest rate reduction;
Development of new marketing partnerships aiming at the intensification in the increase of
miscellaneous revenues;
Development of the relationship with fans, maximizing the audience and adhesion to the fan club
members program;
Maximizing the use of available assets;
Investments that have kept sports performance at a high level, resulting in additional revenue as
well as increased engagement.
10
December 31st 2021
1. Operational context – Continued

Seasonality
There are significant seasonal effects on the Club's operations, as football revenues (which
represented approximately 99% and 95% of revenues for the fiscal years ended December 31st,
2021 and 2020, respectively), tend to occur during the annual competition periods, which in 2021
were as follows:
Competition Club participation period
Campeonato Carioca 03/02/2021 to 05/22/2021

2020 Campeonato Brasileiro 08/08/2020 to 02/25/2021
2021 Campeonato Brasileiro 05/29/2021 to 12/09/2021
Libertadores da América 04/20/2021 to 11/27/2021
Copa do Brasil 06/11/2021 to 10/27/2021
Furthermore, there are specific periods of the year when football clubs can transfer players from
other countries to their team (“transfer window”). Such transfer is completed after registering the
player in the new club through FIFA (International Federation of Association Football), which
generally regulates the process and establishes two windows, one in the interval between the two
seasons (maximum of 12 weeks) and one shorter (maximum one month) in the middle of the
season. The specific periods depend on the season cycle and are determined by the national
football authorities.
The transfer window of a given football confederation only regulates international transfers. The
window of the confederation where player is leaving does not need to be open for this transfer to
occur.
In Brazil, the pre-season window is between March 1st and May 23rd, and the mid-season window
is between August 1st and August 30th. However, windows of European Clubs differ from the
Brazilian due to the period in which their competitions are held, which generally results in a pre-
season window that lasts until the end of August, and one in the middle of the season, in January.
Therefore, there is a relevant movement in the purchase of rights over athletes in the periods of
the Brazilian transfer windows and sales in the periods of the European windows.
Impacts of the coronavirus (“Covid-19”)
On March 11th, 2020, the World Health Organization (WHO) declared the Covid-19 outbreak a
worldwide pandemic in which government authorities in several jurisdictions imposed lockdowns
and preventive restrictions to contain the virus, reducing the operating activity of various sectors.
11
December 31st 2021

Impacts of the coronavirus (“Covid-19”) – Continued
During 2021, despite the non-interruption of competitions, the Club's activities continued to be
affected due to the restriction of fans in stadiums during most of the year, as well as the limitation
to the presence of fans with the stadiums open, as defined by sports authorities and federations.
It is expected that, with the progress of vaccination campaigns in all segments of the population,
the effects of Covid-19 should less significantly affect the Club's results for the fiscal year ending
December 31st, 2022, but Management will be attentive in taking the necessary steps to mitigate
any impact as it did in 2020 and 2021. The main aspects to comment on are:
Liquidity
On December 31st, 2021, cash and cash equivalents and short-term investments amounted to
R$127,182. On August 23rd, 2021, the Club signed a financing agreement, totaling R$70,676,
lengthening its debt profile in order to reinforce its short-term liquidity, given the market volatility
caused by the Covid-19 crisis in the global market and for the timely adjustment in its flow of
payments and receipts. The Club continued to intensify its efforts to reduce fixed and variable
costs, to reduce administrative expenses, to reduce and postpone corporate projects, and the
Club also negotiated the extension of accounts payable with suppliers.
The Club also renegotiated some Sponsorship and Licensing contracts with more relevant values
than the previous ones, reflecting the sports performance and the growing engagement of its fans,
as well as expanding its line of recurring revenues in seeking new contracts, such as Adidas,
Ambev and Sócios.com.
Expected credit losses
In view of the continuing scenario of economic uncertainties caused by the Covid-19 pandemic,
and still considering the increase in the percentage of the population already vaccinated, the Club
revised again the variables that make up the methodology for measuring estimated losses and
did not note an increase in default, either of members or partners as a result of the pandemic, but
recognized the losses related to the client Viton after verifying that the possibilities of credit
negotiation had been exhausted. The Club continues monitoring the economic scenario and
assessing the possible impacts that may affect the Club's performance and, consequently, the
measurement of estimated losses.
Impairment of assets
Despite the prolonged effects of the pandemic, the effectiveness of the actions taken and the
growing search for new revenues contributed to significantly positive results for the fiscal year
12
December 31st 2021

Impairment of assets– Continued
ended December 31, 2021, exceeding original expectations. Thus, according to the
Management's best judgment, it was not necessary to set up provisions for losses related to
Covid-19 in its operations.
Management will continue to carefully monitor short-term fluctuations in macroeconomic

assumptions related to the impacts of Covid-19 and any impact they may have on the Club's
expected cash flows or cost of capital.
Continuity
The events and conditions generated by Covid-19 have not created any uncertainties regarding
the Club's going concern, which can be illustrated with the results presented for the fiscal year
2021. In light of the aspects mentioned above, the outlook for the fiscal year ending December
31st, 2022 is even more positive and, therefore, there is no indication of circumstances that would
pose a risk to its going concern.
Actions taken in response to Covid-19
Since the beginning of the pandemic, the Club has adopted several measures and protocols to
ensure the: (i) health, safety and well-being of its employees, members and partners; (ii) continuity
of all its operations; and (iii) financial strength and resilience of its business. During the fiscal year
ended December 31st, 2021, the following measures were adopted or maintained:
Hybrid work routine for the administrative staff;

Drastic reduction of in-person work for employees considered at risk;
Decrease of in-person meetings and control over the ones really necessary;
Reinforced hygiene measures and mandatory use of masks;
Mandatory quarantine period until full recovery in case of employee contamination or direct
contact with infected people;
Influenza vaccine campaign;
Internal and external communication campaign for sharing qualified information and guidance;
Monitoring of remote work routine (adherence, productivity, engagement, leadership, etc.);
Other measures, such as actions for suspected/confirmed cases, mandatory temperature
measurement, among others, according to the protocol established by the Ministry of Health of
Brazil;
Specific protocols for access control of fans to stadiums, requiring presentation of vaccination
certificates and Covid-19 tests.
13
December 31st 2021
2. Basis of preparation and presentation and main accounting practices

These financial statements were approved by the Board of Directors on March 21st, 2022.
The financial statements were prepared in accordance with accounting practices adopted in Brazil,
including the pronouncements issued by the Accounting Pronouncements Committee (CPCs) and the
resolutions of the Brazilian Federal Council of Accounting, specific to sports (ITG 2003(R1)) and non-
profit (ITG 2002(R1)) entities. The financial statements were prepared based on the historical cost,
with the exception of certain financial instruments, measured at fair value.
The preparation of financial statements requires the use of certain critical accounting estimates and
the exercise of judgment by the Club's Management in the process of applying accounting policies.
As management's judgment involves the determination of estimates related to the probability of future
events, actual results may differ significantly from these estimates. The Club reviews its estimates
and assumptions periodically, within a period not exceeding one year.
The financial statements are presented in Reais (R$), which is the Club's functional and presentation
currency.
The main accounting policies applied in the preparation of these financial statements are set out
below.
2.1. Foreign currency translation
Foreign currency transactions are initially recorded at the functional currency exchange rate
in force on the transaction date.
Monetary assets and liabilities denoted in foreign currency are translated using the closing
exchange rate on the reporting date.
All differences are recorded in the income statement. Charges and tax effects attributable
to exchange variation on these monetary items are also recognized in other comprehensive
income.
Non-monetary items that are measured at historical cost in foreign currency are converted
using the exchange rate at the date of the transaction. Non-monetary items that are
measured at fair value in foreign currency are converted using the exchange rates in force
on the dates the fair value was measured. Gains or losses resulting from the conversion of
non-monetary items measured at fair value are treated in accordance with the recognition
applicable to the gain or loss on the change in the fair value of the item (i.e. translation
differences for items whose fair value gain or loss is recognized in other comprehensive
income or in the profit or loss for the fiscal year are also recognized in other comprehensive
income or in the profit or loss for the fiscal year, respectively).
14
December 31st 2021
2. Basis of preparation and presentation and main accounting practices –

Continued
2.1 Foreign currency translation - Continued
In determining the exchange rate to be used in the initial recognition of the respective asset,
expense or income (or portion thereof) related to advance payment or receipt, the
transaction date is the date on which the Club initially recognizes the non-cash asset or
non-cash liability arising from the advance payment or receipt. When there are multiple
advance payments or receipts, the Club determines the transaction date for each payment
or receipt of the advance consideration.
2.2. Current and non-current assets and liabilities
Assets are classified as current when realizable within the next twelve months. Current and
non-current liabilities are stated at the amounts in which they will be settled considering the
date of each balance sheet, including accrued interest and monetary or exchange variations
in accordance with contractual conditions.
2.3. Adjustment to present value of assets and liabilities
Long-term monetary assets and liabilities are monetarily restated and therefore adjusted to
their present value. The adjustment to present value of short-term monetary assets and
liabilities is calculated, and only recorded, if deemed relevant in relation to the financial
statements as a whole. For the purposes of recording and determining relevance, the
adjustment to present value is calculated taking into account the contractual cash flows and
the explicit, and in certain cases implicit, interest rate of the respective assets and liabilities.
2.4. Financial instruments
A financial instrument is a contract that gives rise to an entity's financial asset and another
entity's financial liability or equity instrument.
Classification and measurement of financial assets and liabilities
This new standard contains three main classification categories for financial assets: (i)
measured at amortized cost, (ii) fair value in other comprehensive income, and (iii) fair value
through profit or loss. The Club considered the business model in which the financial asset
is managed and its contractual cash flow characteristics to define the classification of
financial assets in accordance with the standard.
The Club recognizes its financial assets at amortized cost for financial assets held within a
business model with the aim to obtaining contractual cash flows that meet the criterion of
15
December 31st 2021

Continued
2.4. Financial instruments – Continued.
Classification and measurement of financial assets and liabilities – Continued
only principal and interest payment. This category includes cash and cash equivalents,
accounts receivable from customers, receivables, and other financial assets. No new
measurement of financial assets has been performed.
The Club classifies its financial assets and liabilities as amortized cost and fair value through
financial income. These classifications are based on the business model adopted by
management and the characteristics of the contractual cash flows.
Financial assets - amortized cost
Financial assets held in a business model whose aim is to hold them to collect contractual
cash flows are recognized at amortized cost. These flows are received on specific dates
and exclusively constitute principal and interest payments.
Financial assets – Fair value through income
Assets are recognized at fair value through income if: (i) do not fall into the classification at
amortized cost or at fair value through other comprehensive income, (ii) equity instruments
designated at fair value through income, and (iii) are managed with the aim to obtaining
cash flow through the sale of assets.
Financial assets – initial measurement
On the initial recognition, the Club measures its financial assets and liabilities at fair value,
considering the transaction costs attributable to the acquisition or issue of the financial asset
or liability. For accounts receivable from customers, the initial measurement is based on the
transaction price.
Financial assets – subsequent measurement
Amortized cost: these assets are accounted for using the effective interest rate method by
subtracting the amount referring to the expected credit loss. Additionally, the amount of
principal paid is taken into account for the calculation of the amortized cost.
Fair value through income: the assets classified within this business model are accounted
for through recognition of the gain and loss in the income for the period.
16
December 31st 2021

Continued
Impairment
The Club recognizes provision for expected credit loss for its assets classified at amortized
cost. This assessment is performed prospectively and based on historical data and models
built to this end.
In assessing the expected credit loss model, management took into account its current
procedure for the provision for losses due to doubtful credits, the credit risk characteristics
of the operations, its operating segments and customers, further established a provisioning
matrix based on its historical default rate, adjusted for prospective factors specific to
borrowers and the economic environment.
Financial liabilities – initial recognition
Financial liabilities are initially recognized at fair value plus transaction costs (in the case of
loans, financing and accounts payable).
Financial liabilities – subsequent measurement
Amortized cost: accounted for using the effective interest rate method, where gains and
losses are recognized in the income statement when the liabilities are written-off, or
through the increase in the effective rate.
Fair value through income: accounted for by recognizing the gain and loss in the income
for the period.
The Club's main financial assets and liabilities are:
Cash and cash equivalents
Cash equivalents are held for the purpose of meeting short-term cash commitments, and
not for investment or other purposes. For an investment to qualify as a cash equivalent, it
must be readily convertible into a known amount of cash and be subject to an insignificant
17
December 31st 2021
risk of changes in value. Therefore, an investment typically qualifies as a cash equivalent

Continued
only when it has a short-term maturity, for example, three months or less from the date of
acquisition.
Accounts receivable (including players’ transfers)
The balance of accounts receivable from customers corresponds, substantially, to amounts

receivable from the negotiation of athletes in the ordinary course of the Club's activities,
brand licensing, and sponsorships.
Accounts receivable from customers are initially stated at present value and deducted from
the provision for doubtful credits. The provision for doubtful credits is established when there
is objective evidence that the Club will not be able to collect all amounts due according to
the original terms of the accounts receivables, further being analyzed individually. The new
impairment model for financial assets is a hybrid of expected and incurred losses, replacing
the previous incurred loss model. The provision amount is the difference between the book
value and the recoverable amount.
Accounts payable to suppliers (including players’ transfers)
Accounts payable to suppliers are obligations payable for goods or services that have been
acquired in the ordinary course of business.
They are initially recognized at present value and subsequently measured at amortized cost
using the effective interest rate method.
Financial Liabilities (Loans and Financing)
After initial recognition, incured loans and financing subject to interest are subsequently
measured at amortized cost using the effective interest rate method. Gains and losses are
recognized in the income when the liabilities are written-off, as well as by the process of
amortization of the effective interest rate.
Other financial assets and liabilities
They are stated by realization values (assets) and known or estimated values, plus, when
applicable, the corresponding charges and monetary variations incurred (liabilities).
18
December 31st 2021

Continued
2.5. Inventories
Inventories consist of sports and consumable goods, and they are assessed at the average
cost of acquisition.
2.6. Investment properties
Investment properties are initially measured at cost, including transaction costs. The book
value includes the replacement cost of part of an existing investment property at the time
the cost is incurred if the recognition criteria are met, excluding the costs of daily servicing
of the investment property. After initial recognition, the investment property is stated at
historical cost, less provision for depreciation and, where applicable, loss to impairment, but
with additional disclosure of its fair value, which reflects market conditions on the reporting
date.
Investment properties are written off when sold (i.e. on the date the recipient obtains control)
or when the investment property is no longer permanently used and no future economic
benefit is expected from its sale. The difference between the net value obtained from the
sale and the book value of the asset is recognized in the income statement when writen-off.
In determining the value arising from the derecognition of the investment property, the Club
assesses the effects of variable considerations, the existence of a significant financing
component, considerations not involving cash, and considerations due to the buyer (if any).
Transfers are made to or from the investment property account only when there is a change
in use. If the owner-occupied property becomes an investment property, the Club accounts
for such property according to the policy described in the asset item until the date of change
in use.
2.7. Fixed assets
Fixed assets are stated at acquisition or construction cost, less the respective accumulated
depreciation calculated by the straight-line method based on the estimated useful lives of
the assets. Repair and maintenance costs that do not extend the useful life of the asset are
recognized as an expense when incurred.
Management annually reviews the net book value of assets in order to identify events or
changes in economic, operating or technological circumstances that may indicate
deterioration or impairment. When such evidences are identified, and the net book value
exceeds the recoverable amount, it is established a provision for losses adjusting the net
19
December 31st 2021
book value to the recoverable amount, if applicable.

Continued
2.7. Fixed assets – Continued
Assigned cost
Land and buildings are stated at the assigned cost pursuant to the Federal Accounting
Council (CFC) Resolution No. 1.409, of September 21, 2012), calculated as of January 1st,
2012 (supported by an independent experts' report), less depreciation (when applicable),
and any accrued loss to impairment as of such date.
2.8. Intangible assets
Intangible assets separately acquired are measured at cost upon initial recognition. The
cost of intangible assets acquired in transfer of rights over athletes corresponds to the fair
value on the acquisition date. After initial recognition, intangible assets are stated at cost,
less accumulated amortization and accrued loss to impairment. The useful lives of intangible
assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortized over the useful economic life and assessed
for loss to impairment whenever there is an indication of loss of the asset's economic value.
The period and method of amortization for an intangible asset with a finite useful life shall
be revised at least at the end of each fiscal year. Changes in the estimated useful life or
expected consumption of future economic benefits of these assets are accounted through
changes in the period or amortization method as the case may be, being treated as changes
in accounting estimates. Amortization of intangible assets with finite life is recognized in the
income statement in the consistent expense category with the use of the intangible asset.
Intangible assets with indefinite useful life are not amortized, but are tested annually against
losses due to impairment, individually or at the level of the cash generating unit. The
indefinite useful life assessment is revised annually to determine whether that assessment
remains justifiable. Otherwise, the change in the useful life from indefinite to finite is made
prospectively.
Gains and losses resulting from the write-off of an intangible asset are measured as the
difference between the net sales proceeds and the book value of the asset, and are
recognized in the income statement when the asset is written-off.
20
December 31st 2021

Continued
2.8. Intangible assets – Continued
Professional Athletes
This item includes expenses incurred with professional athletes, trained at the academy,
which are transferred from the item “athletes in training” to “professional athletes”, upon the
athlete's professionalization. The amortization is calculated according to the term of the
professional contract.
Athletes in training
This account recognizes expenses directly related to the training of athletes

(accommodation, food, transport, education, clothing, medical assistance, coaching staff,
etc.). The amounts for which economic benefits and cash are expected are recorded as
intangible assets. In order to define the correct amount that should be appropriated, a
percentage of success is adopted, which considers the history of athletes who become
professionals over the total number of athletes in training. This rate is revised from the
moment athletes in training sign employment contracts as professionals. To this end, the
youth football management carries out a semiannually assessment of the youth athletes to
assess the technical feasibility and define the athletes who are able to continue the
professional training process. In this assessment, those that do not perform well are
dismissed, and the entire balance previously accounted for as intangible assets is written-
off against the income for the fiscal year.
Economic rights over professional athletes
In this item, the economic rights of professional athletes acquired by the Club are recorded
at the par values included in the athletes' purchase contracts, net, and the amortization
carried out in accordance with the contractual term for the active installment. Payments are
made in accordance with the financial schedules provided for in the contract.
21
December 31st 2021

Continued
2.9. Taxes and contributions
The Club is a non-profit association, therefore it enjoys the following tax benefits:
Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSSL): exemption
from paying federal taxes levied on the income, in accordance with articles 167 to 174 of
the Income Tax Regulation approved by Decree No. 3.000, of 03/26/99, and article 195 of
the Federal Constitution.
Social Integration Program (PIS): payment of the PIS contribution calculated on the payroll
at the rate of 1% in accordance with Law No. 9.532/97.
Contribution to Social Security Financing (COFINS): exemption from the payment of
COFINS levied on revenues related to its own activities, in accordance with Laws No.
9718/98 and No. 10833/03.
National Institute of Social Security (INSS): payment of the employer's contribution at the
rate of 4.5%, levied on the payroll, and 5% on gross revenue.
2.10. Provisions
Provisions are recognized when there is a present obligation (legal or not formalized) as a
result of a past event, where it is probable that economic benefits will be required to settle
the obligation, and a reliable estimate of the amount of the obligation can be made. When
the Club expects the amount of a provision to be reimbursed, in whole or in part, the
reimbursement is recognized as a separate asset, but only when the reimbursement is
practically certain. The expense relating to any provision is recorded in the income, net of
any reimbursement.
The Club is a party to several judicial and administrative proceedings. The provision for
contingencies is made for legal disputes where it is probable that an outflow of resources
will occur to settle the contingency, and a reasonable estimate can be made. The
assessment of the probability of loss includes the assessment of available evidence, the
hierarchy of laws, available jurisprudence, the most recent decisions in the courts and their
relevance in the legal system, as well as the assessment from external lawyers. Provisions
are revised and adjusted to take into account changes in circumstances, such as applicable
period of limitations, conclusions of tax inspections or additional exposures identified based
on new matters or court decisions.
22
December 31st 2021

Continued
2.11. Revenue recognition
Contract revenue is recognized when control of goods or services is transferred to the

customer for an amount that reflects the consideration to which the Club expects to be
entitled in exchange for these goods or services. The Club generally concludes that it is the
principal in its revenue contracts, except for the procurement services listed below, as it
usually controls the goods or services prior to transferring them.
If the consideration in a contract includes a variable amount, the Club estimates the
consideration amount to which it will be entitled in exchange for the transfer of rights or
services. Variable consideration is estimated at the start of the contract and restricted until
it is highly probable that a significant portion of revenue will not be reversed, in the amount
of the accrued revenue recognized, when the uncertainty associated with the variable
consideration is subsequently resolved. Some contracts for the sale of professional rights
over athletes provide customers with the right to withdraw if certain conditions are not met
within a predetermined period, conditions which give rise to variable consideration.
Revenue from transfer of federative rights over athletes
Revenues from transfers of federative rights are accounted for when contracts are signed
and/or the professional rights of the athlete are transferred to another club.
Solidarity mechanism revenue
Arising from the receipt of a percentage earmarked for all amounts paid for international
transfers of athletes to the club that participated in their training, as provided for in article
21 of the FIFA Transfer Regulations in order to benefit the training clubs and to compensate
them financially. Considering that the contractual details of each transaction for the sale of
professional rights over athletes are not of public knowledge, the solidarity process is carried
out through FIFA, which centralizes the capture of information from the Clubs, calculates
the amounts due, and informs the training clubs. Therefore, only at this moment are the
amounts known, measurable, and the respective revenues recognized.
Revenue from broadcasting rights of matches
Revenues from broadcasting rights of matches are recorded based on contracts entered
into with media companies holding these rights and recognized in accordance with the
competence of the events linked to these contracts. In the case of tournaments such as
Copa do Brasil and Libertadores, revenue is recognized at the amounts determined and
23
December 31st 2021
received according to participation in each stage of the tournament.

Continued
2.11. Revenue recognition – Continued
Advertising revenues (direct sponsorships)
Revenues from direct sponsorships are accounted for on an accrual basis based on the
contracts entered into with the respective sponsors, in accordance with the stipulated term
for the promotion of their brands with the Club.
Advertising revenue (incentivized sponsorships)
Revenues from incentivized sponsorships are accounted for based on the use of
incentivized resources, as in case of non-use of resources during the period of the project,
it can be extended and/or it may be necessary to return the remaining balance to the
Government that released the compensation, which can be State, through the ICMS (State
Goods and Services Tax), or Federal, through the Income Tax.
Royalty revenues (Product licensing)
Royalty revenue is recognized on an accrual basis, according to the methodology and

percentage rates defined in the contracts entered into with the franchisees.
Membership revenues
Revenue from associates is recognized on an accrual basis, according to the methodology

and percentage rates defined in the associations, which may be from Club members, from
outside Rio de Janeiro and Supporters.
Revenues from signing bonus (Signing-on fee)
The initial non-refundable fee is recognized as an advance payment for future goods or
services, and revenue is recorded when those goods or services are provided, on an accrual
basis.
Box office revenues
Box office revenues are accounted for based on the matchbooks as the events take place.
24
December 31st 2021

Continued
2.12. Information by segment
The Club only operates in the sports segment. Besides the analysis of the segment as a
whole, additional disclosure of the result was included in order to comply with ITG 2003
(R1), separating the result of each sport (Soccer, Olympic Sports, Social Club, and Others).
2.13. Cash flow statements
The cash flow statements were prepared by the indirect method and are presented in
accordance with CPC 03 (R2).
2.14. Comprehensive income statement
The Club does not have revenues and expenses items of a nature that affect the
comprehensive income statement.
2.15. Judgments, estimates and significant accounting assumptions
Judgments
The preparation of the Club's financial statements requires Management to make judgments
and estimates and adopt assumptions that affect the amounts presented regarding
revenues, expenses, assets and liabilities, as well as the disclosure of contingent liabilities,
on the base date of the financial statements. However, uncertainty with respect to these
assumptions and estimates could lead to results that require a significant adjustment to the
book value of the affected asset or liability in future periods.
Estimates and assumptions
The main assumptions regarding sources of uncertainty in future estimates and other
important sources of uncertainty in estimates at the balance sheet date, involving significant
risk of causing a significant adjustment in the book value of assets and liabilities in the next
fiscal year, are discussed below:
Expected provisions for doubtful credits
25
December 31st 2021
The expected provisions for doubtful accounts are presented as a decrease in the balance
of accounts receivable and are constituted in an amount deemed sufficient by Management
to cover losses in the realization of amounts receivable, considering the history of receipt
Continued
2.15. Judgments, estimates and significant accounting assumptions – Continued
Expected provisions for doubtful credits – Continued
by debtor, in addition to individual analysis of receivables to capture counterparty-specific

risks, if any.
Fair value of financial instruments
When the fair value of financial assets and liabilities presented on the balance sheet cannot
be obtained from active markets, it is determined using valuation techniques, including the
discounted cash flow method. Data for these methods are based on those practiced in the
market, where possible, however, where this is not feasible, a certain level of judgment is
required to establish the fair value.
The judgment includes considerations on the data used, such as liquidity risk, credit risk,
and volatility.
Changes in assumptions about these factors could affect the fair value of financial
instruments presented.
Useful life of fixed and intangible assets
The depreciation or amortization of fixed and intangible assets takes into account
management's best estimate of the use of these assets over the course of its operations.
Changes in the economic scenario and/or in the consumer market may require a review of
these useful life estimates.
Loss to impairment of non-financial assets
Management, at least annually, reviews the net book value of assets in order to identify
events or changes in economic, operating or technological circumstances that may indicate
deterioration or impairment. Once such evidence is identified, and the net book value
exceeds the recoverable amount, a provision for devaluation is created, adjusting the net
book value to the recoverable amount.
26
December 31st 2021

Continued
Loss to impairment of non-financial assets – Continued
The recoverable amount of an asset or a particular cash-generating unit is defined as being

the highest between the value in use and net sales value. In the case of the Club, the
assessment considered the team as a cash-generating unit and carried out an assessment
of indications of impairment for each of the players, in order to identify potential clear
evidence of individual devaluations.
In estimating the value in use of the asset, estimated future cash flows are discounted to
their present value using a discount rate that reflects the weighted average cost of capital
for the industry in which the cash-generating unit operates. The net sale value is determined,
whenever possible, on the basis of a solid sale agreement in an arm's length transaction
between knowledgeable and interested parties, adjusted for expenses attributable to the
sale of the asset, or, when there is no solid sale agreement, based on the market price of
an active market, or the price of the most recent transaction with similar assets.
This criterion is also applied to assess loss to impairment of intangible assets with indefinite
useful lives, which are tested for impairment annually, individually, or at the cash-generating
unit level, as the case may be or when circumstances indicate a loss due to devaluation of
the book value. When such evidences are identified, and the net book value exceeds the
recoverable amount, it is established a provision for deterioration adjusting the net book
value to the recoverable amount, when applicable.
Provision for contingencies
The Club has recorded provisions, which involve considerable judgment by Management,
for tax, labor and civil risks that, as a result of a past event, it is probable that an outflow of
resources involving economic benefits will be necessary to settle the obligation and a
reasonable estimate can be made of the amount of this obligation. The Club is also subject
to legal, civil and labor claims covering matters arising from the ordinary course of its
business activities.
27
December 31st 2021

Continued
Provision for contingencies – Continued
The assessment of the probability of loss includes the assessment of available evidence,
the hierarchy of laws, available jurisprudence, the most recent decisions in the courts and
their relevance in the legal system, as well as the assessment from external lawyers.
Provisions are revised and adjusted to take into account changes in circumstances, such
as applicable period of limitations, conclusions of tax inspections or additional exposures
identified based on new matters or court decisions. Actual income may differ from the
estimates.
The settlement of transactions involving these estimates may result in amounts that differ
significantly from those recorded in the financial statements due to the inaccuracies inherent
to the process of their determination. The Club reviews its estimates and assumptions at
least annually.
Intangible assets - technical feasibility for capitalization of training costs
An assessment of the athletes in the academy is carried out semiannually to assess the
technical feasibility and define the athletes who are able to continue the professional training
process. This assessment considers, in its premises, the performance, professionalization
history and recovery projections of the candidates to becoming athletes.
Loyalty program
The Club has a loyalty program, which allows associates to accumulate points that can be
exchanged for experiences or products free of charge. Loyalty points generate a separate
performance obligation as they provide a material right to the member. Thus, a portion of
the transaction price would be allocated to loyalty points awarded based on the relative
standalone selling price and recognized as a contract liability until the points are redeemed.
Revenue would be recognized upon redemption of products by the member.
When estimating the standalone selling price of loyalty points, the Club considers the
probability of the member redeeming the points. The Club updates its estimates of the points
that will be redeemed on a quarterly basis, and any adjustments to the liability balance of
the contract are charged against revenue. In the fiscal year ended December 31st, 2021,
28
December 31st 2021
Management found that the obligation generated by the program is not material for
recording and disclosure purposes.

Continued
2.16. New or revised pronouncements first applied in 2021
The standards and interpretations applied for the first time in 2021 have no impact on the
Club's financial statements. The Club has decided not to adopt in advance any other
standards, interpretations, or amendments that have been issued but are not yet in force.
Regarding new pronouncements, to be implemented in subsequent years, they are not

expected to have a significant impact on the Club's financial statements.
29
December 31st 2021
3. Cash and cash equivalents and restricted cash

2021 2020
Cash and banks 42.869 43.560

Financial investments 84.313 7.428
Restricted cash 25.233 14.897
152.415 65.885
The balance of cash and cash equivalents includes cash on hand, balance in banks and highly
liquid investments, low risk of variation in market value and maturities not exceeding three
months. In order to provide hedge against exchange rate, 54% of the cash composition was
deposited in foreign currency.
Cash equivalents are represented by deposits in fixed-income financial investments that had an
average remuneration of 100.50% CDI (CDB) and 96% CDI and savings income for the
incentivized accounts in 2021 (97% of the CDI, in 2020).
Restricted cash refers to amounts allocated to the Club's incentivized projects. These funds can
only be used for these previously approved projects.
30
December 31st 2021
4. Accounts receivable
The balance of accounts receivable is substantially composed of amounts receivable from the
licensing of the Flamengo brand, sponsorships, and match revenue, as follows:
2021 2020
Brand licensing and sponsorship 61.763 26.195

Match revenue 1.231 -
Club members program - 2.846
Others 1.173 444
Adjustment to customers’ present value (323) (323)
Expected provision for doubtful credits (25.417) (17.947)
38.427 11.215
Current 38.427 11.215

Non-current - -
Movements in the expected provision for doubtful credits:
2021 2020
Balance at the beginning of the fiscal year (17.947) (15.612)
Constitution of the expected provision for doubtful credits (7.470) (2.335)

Balance at the end of the fiscal year (25.417) (17.947)
As of December 31st, the composition of accounts receivable balances, by maturity, was as

follows:
Overdue
1- 31 - 91 - Over
Total To mature 30 days 90 days 120 days 180 days
2021 64.167 22.795 3.637 4.570 7.748 25.417

2020 29.485 5.941 3.089 1.391 1.942 17.122
31
December 31st 2021
5. Accounts receivable from players’ transfers

2021 2020
Real Madrid Club de Fútbol (i) - 85.028

Olympique Lyonnais Sasu (ii) 9.291 3.527
Lommel SK (iii) - 8.593
Olympique De Marseille (iv) 98.691
Red Bull Bragantino Futebol Ltda. (v) 22.143
Fulham Football Club Limited (vi) 24.502
Cuiabá Esporte Clube Ltda. (vii) 2.000
Outros 2.510 2.476
159.137 99.624
Current 77.194 99.624
Non-current 81.943 -
(i) On January 20th, 2020, the Club sold the rights over athlete Renier Jesus Carvalho to Real Madrid Club de Fútbol for EUR
30,000. The balance as of December 31st, 2020 in the amount corresponding to EUR 13,333 was fully received through two
installments of the same amount on January 10th, 2021 and July 10th, 2021, as contractually agreed upon.
(ii) The balance as of December 31st, 2021 refers to 2 installments of EUR 622 each, due on September 30th , 2022 and September
30th, 2023 from the sale of athlete Jean Lucas, and EUR 267 refers to the Solidarity Mechanism due to the transfer of athlete
Lucas Paquetá from Clube A.C. Milan to Club Olympique Lyonnais Sasu due on October 31st, 2022.
(iii) On August 17th and 27th, 2020, the Club sold the rights over athletes Caio Alves Roque Gomes and Vinicius de Souza Costa to
Club Lommel SK, for the amount of EUR 1,500 and EUR 2,500, respectively. The balance as of December 31st, 2020 was fully
received throughout fiscal year 2021, with no losses incurred by the Club.
(iv) On July 6th, 2021 the Club concluded the sale of player Gerson Santos da Silva, which was formalized for the amount of EUR
20,500, to Olympique de Marseille. The balance as of December 31st, 2021, refers to the balance of installments due at EUR
15,500 as per the contract, of which EUR 3,500 were due in 2022 and EUR 12,000 were due in 2024.
(v) The balance refers to the purchase of athlete Natan Bernardo by Red Bull Bragantino Futebol Ltda. Part of the balance recognized
on December 31st, 2021 was received by the Club on January 26th, 2022 in the amount of R$ 11,407, with the remaining balance
maturing in 2 installments in the amount of R$ 5,368 each, due on July 8th, 2022 and January 8th, 2023.
(vi) The balance refers to the portion of the purchase of athlete Rodrigo Muniz by Fulham Football Club Limited in the amount of
EUR 4,000 due on August 8th, 2022.
(vii) On December 20th, 2021, the Club sold the economic rights of athlete João Lucas to Cuiabá Esporte Clube for R$ 2,000, with
payment in two installments of R$ 1,000 due on January 18th, 2022 and May 18th, 2022.
32
December 31st 2021
6. Investment properties
% Depreciation Accumulated
rate Cost depreciation 2021 2020
Ed Hilton Santos 104.000 - 104.000 104.000
Praia do Flamengo
Land 685 - 685 685
Improvements 4 456 (230) 226 245
105.141 (230) 104.911 104.930
On June 22nd, 2018, the Club entered into an agreement with CBR 040 Empreendimentos
Imobiliarios Ltda, with Cyrela Brazil Realty S/A as the guarantor, for the sale of 103 units at
Edificio Hilton Santos. The amount of the agreed consideration was R$130,000, to be paid by the
developer as follows:
R$26,000, in cash, with the first installment of R$6,500 received on February 2nd, 2018, and the
second installment of R$19,500 received on June 22nd, 2018.
R$104,000, through performance of the obligation to carry out the restoration and delivery to
Flamengo of 46 units, ready and finished, at the referred building, which will remain with the Club.
As a result of this transaction, Flamengo recorded the residual amount of R$104,000 as

investment properties, with the fair value, as of December 31st, 2021, estimated at R$165,139
(R$113,894 as of December 31st, 2020) for said units received as part of the payment for the
operation.
The units were delivered to the Club in September 2021 and remain unoccupied to date.
33
December 31st, 2021
7. Intangible assets – Continued

Percentages of economic rights
2021 2020
Percentages Professionals Academy Total Professionals Academy Total
0% 10 23 33 9 18 27
up to 30% 2 0 2 2 2 4
31% to 50% 5 6 11 5 3 8
51% to 80% 15 30 45 14 26 40
81% to 99% 5 4 9 5 2 7
100% 19 50 69 18 58 76
56 113 169 53 109 162
Impairment
The Club's intangible assets consist of costs of training, trained professional athletes and acquired
federative rights. The Cash-Generating Unit (CGU) was identified by Management as the team,
and an individual assessment was also carried out on the indicators of devaluation.
Management analyzed the current scenario and, despite the effects of the pandemic, found that
there were no indications of impairment that would require carrying out the impairment test.
37
December 31st, 2021
8. Fixed assets – Continued

Fixed assets impairment analysis
Management assessed the existence of events or changes in economic, operating or

technological circumstances, and did not identify evidence that could indicate deterioration or
impairment of the items comprising the fixed assets.
9. Suppliers and other obligations

2021 2020
Domestic suppliers 16.711 21.563

International suppliers 4.599 253
Others 7.077 2.799
28.387 24.615
Current 17.676 17.479

Non-current 10.711 7.136
10. Accounts payable from players’ transfers

2021 2020
Image rights 6.422 12.416

Rights over athletes, including acquisition costs (i) 209.122 263.364
Adjustment to present value (10.809) (5.349)
204.735 270.431
Current 111.756 173.961

(i) Rights over players refer to the acquisition of players from other clubs. Of the outstanding amount, R$ 70,132 refers to the obligation with F.C
Internazionale Milano S.P.A regarding the purchase of the professional athlete Gabriel Barbosa, R$ 59,481 refers to the obligation with ACF
Fiorentina regarding the purchase of the professional athlete Pedro Guilherme, R$ 14,138 refers to the obligation with Desportivo Brasil
Participações regarding the purchase of the professional athlete Rodrigo Muniz, R$ 12,637 refers to the obligation with Associazione Sportiva
Roma S.P.A. regarding the purchase of the professional athlete Gerson Silva, and R$ 50,950 refers to other diversified purchases. As of December
31st, 2020, rights over athletes refer to the acquisitions of players from other clubs. Of the outstanding amount, R$ 90,582 refers to the obligation
with F.C Internazionale Milano S.P.A. regarding the purchase of the professional athlete Gabriel Barbosa, R$ 42,512 refers to the obligation with
Associazione Sportiva Roma SPA and intermediaries regarding the purchase of the professional athlete Gerson Santos, R$16,888 refers to the
obligation with Bertolucci Assessoria e Propaganda Esportiva, Link Assessoria Esportiva e Propaganda and Cruzeiro Esporte Clube regarding the
purchase of the professional athlete Giorgian De Arrascaeta, R$ 23,747 refers to the obligation with Clube Athletico Paranaense, Trieste Futebol
Clube and R13 Fussball Agenciamento esportivo regarding the purchase of the professional athlete Leonardo Pereira, R$ 26,027 refers to the
obligation with Goias Esporte Clube and Duts Marketing Esportivo Ltda regarding the purchase of the professional athlete Michael Richard Delgado,
and R$ 55,231 refers to the obligation with other diversified purchases.
39
December 31st, 2021
11. Loans
Loans were obtained for working capital purposes and are composed as follows:
Banks Spread Currency Principal Maturity Amortization Warranties 2021 2020
Banco BRB CDI + 0,36% BRL 45.000 15/12/2021 Monthly Partnership Contract with
BRB, Adidas
-
Sponsorship and Globo
Contract 59.625
Banco BRB CDI + 0,27% BRL 70.000 01/08/2023 Monthly Partnership Contract with
BRB, Adidas
-
Sponsorship and Globo
Contract 70.676
70.676 59.625
Current 39.937 59.625

Non-current 30.739
Loans are supported by the financial flow of credit rights from partnership, sponsorship, and
television broadcasting contracts. There are no restrictive clauses in loan contracts. The amount
presented for the non-current portion has its full payment schedule in 2023.
12. Taxes and social contributions

2021 2020
Payment in installments Law No. 13155 (i)
IRRF (Witholding Income Tax) 155.723 158.910
INSS (National Social Security Institute) 55.385 58.040
FGTS (Guarantee Fund for Length of Service) 7.588 6.128
218.696 223.078
Charges on salary 19.990 11.661

Income tax on payment abroad 13.564 17.025
Other taxes payable 24.638 10.147
276.888 261.911
Current 72.970 54.477

Non-current 203.918 207.434
(i) Payment in installments in accordance with Law No. 13.155, of August 4th, 2015, which regulated PROFUT. On September 23rd, 2015, PGFN/RFB
Joint Ordinance No. 1.340 was issued, which regulated the payment in installments with these bodies, with payment over 20 years and a 70%
discount on the fine, 40% on interest and 100% in legal fees, resulting in a decrease in obligations of approximately R$91,000, recorded in the
year ended December 31st, 2015.
Since September 2015, the Club has been paying the taxes included in this Program according to the conditions established in PGFN/RFB Joint
Ordinance No. 1.340. Among the conditions established by the ordinance, it should be noted item 2 of article 5, which determines that the sports
entity may cut:
50% from the 1st to the 24th installment;
25% from the 25th to the 48th installment;
10% from the 49st to the 60th installment.
40
December 31st, 2021
12. Taxes and social obligations – Continued

As of December 31st, 2021 and 2020, the long-term balance has the following maturity
schedule:
2021 2020
Year Amount Amount
2023 15.356 15.153
2024 15.356 15.153
2025 to 2035 172.628 162.466
The confirmation of the effects of the “PROFUT” Payment in Installments also depends on the
consolidation of the calculation of debts by the tax authority, so that part of the amount currently
recognized in the Club's liabilities may undergo changes.
Moreover, the maintenance of the Club in the installment program mentioned above is conditioned
to the fulfillment of certain conditions, especially the payment of debt installments, in accordance
with the law, and the payment of current taxes, as well as the fulfillment of other requirements set
forth in the Program.
During 2016, part of the debts related to the payment in installments provided for in Law No.
13.155 was approved by the tax authority, as follows:
2021 2020
Approved by Approved by
the tax Pending the tax Pending
authority approval Total authority approval Total
Payment in Installments Law
No. 13.155
IRRF (Withholding Income
Tax) 100.749 54.974 155.723 102.337 56.573 158.910
INSS (National Social Security
Institute) - 55.385 55.385 - 58.040 58.040
FGTS (Guarantee Fund for
Length of Service) 7.588 - 7.588 6.128 - 6.128
108.337 110.359 218.696 108.465 114.613 223.078
13. Labor and social obligations

2021 2020
Salaries payable 13.769 7.531

Provisions for vacation 16.391 12.775
Terminations payable 1.118 4.035
Labor agréments - 12.171
Others 498 2.641
31.776 39.153
41
December 31st, 2021
14. Provision for contingencies and judicial deposits

The Club is a party to labor, civil, tax and other lawsuits in progress, and is discussing these
matters both at the administrative and judicial levels, and these discussions, when applicable, are
supported by judicial deposits. Provisions for possible losses arising from these proceedings are
estimated and updated by Management, supported by the opinion of its internal and external legal
advisors.
Composition of the balance
Judicial deposits Provision for contingencies

2021 2020 2021 2020
Labor (i) 9.665 7.801 86.207 80.250

Civil 29.125 22.882 31.519 35.283
Tax 14.168 13.501 - -
52.958 44.184 117.726 115.533
(i) Among the provisions for labor contingencies, we highlight the cases related to the Regional Labor Superintendence / Rio de Janeiro regarding
various assessments in the labor/social security area, the main reasons being the non-payment of FGTS and a 40% indemnity fine upon dismissal
of employees. These causes refer to the administrative level and began in the period from 2013 to 2017.
Movements in judicial deposits and provision for contingencies
Total judicial Total provision for

deposits contingencies
Balance as of December 31st, 2019 35.487 86.451
Additions and restatements (ii) 9.560 37.925

Transfer to accounts payable - (8.843)
Reversal (i) (863) -
Additions and restatements (ii) 10.180 18.524

Transfer to accounts payable (1.406) (16.331)
Reversal (i) - -
(i) Write-offs of judicial deposits refer to labor claims that had their forecasts changed or loss amounts recalculated by means of an interim award or
expert calculation.
(ii) Additions refer to labor and civil claims that, in the opinion of the legal advisors, changed the possibility of loss to probable in 2021. The main labor
claims refer to petitions from former athletes of the Club, with a' restated amount of approximately R$8,963; and several civil lawsuits related to
indemnities with a restated amount of approximately R$2,618.
42
December 31st, 2021
14. Provision for contingencies and judicial deposits – Continued

Possible losses
Proceedings involving risks of loss assessed as possible, for which no provisions were
recorded, are summarized as follows:
2021 2020
Tax and social security - 1.291

Labor (a) 83.142 102.539
Civil (b) 245.244 219.504
328.386 323.334
(a) Among the labor lawsuits, we highlight the lawsuit of a former employee that requires the Club to pay compensation for an
occupational accident and life annuity resulting from an alleged injury that occurred in 2007, in the amount of R$40,000. In the
Club's understanding, this lawsuit is doomed by the biennial limitation. Other lawsuits are mainly related to claims for overtime,
13th salary, prior notice, vacations and FGTS and, in these lawsuits, there are no individually relevant lawsuits.
(b) The main discussions concern the following lawsuits:
(i) On February 14th, 2014, the Club was notified of the application of a fine, in the historical amount of R$38,367 (around
R$200,520, monetarily restated and with a fine, with a probability of possible loss, arising from the alleged lack of registration,
before the duly registered institutions, of exchange operations carried out when trading players, in the period between January
1990 and August 1998. The Club offered as collateral, in this lawsuit, a property, as well as contracts with former sponsors
Viton 44 and Peugeot Citroen, who deposited in court the amount of R$6,940, in addition to the value of the property.
(ii) Citizen Suit seeking to have the sponsorship contracts between Caixa Econômica Federal and the Club rendered null and
void, in the original amount of R$25,000, assigned under number 5023905-83.2013.4.04.7100. The suit was dismissed on
10/28/2016, pending judgment on the plaintiff's appeal. Due to the possibility of reversal of the decision, as well as the
absence of precedents to establish a majority position, the forecast “possible” is attributed to the suit.
(iii) Public civil action filed by the Public Defender's Office of the State of Rio de Janeiro against FERJ, in February 2015,
questioning art. 133 of FERJ's General Rules of Competitions, which established the so-called “Gag Law” against any
manifestations contrary to any act by the federation or the championship itself, under penalty of fine. The Court of the Special
Court of Fans and Major Events determined the inclusion of MPERJ, however, to date, there has been no progress, neither
the summons of the defendants nor any manifestation of the answer filed by Flamengo in 2017. The amount involved is of
R$73,226, restated on December 31st, 2021.
43
December 31st, 2021
15. Advance payments received

These mainly refer to advance payments in broadcasting rights, recorded in the income
statement for the fiscal year according to the accrual of the respective contracts.
2021 2020
Televisioning (i) 65.928 97.423

Brand licensing and sponsorship 33.930 28.074
Incentivized projects (ii) 22.784 12.567
Revenue to be realized Fan Club Members 2.362 -
Advance payment Maracanã (iii) 2.267 4.996
Other advance payments 9.357 8.035
136.628 151.095
Current 91.001 149.420

(i) In 2016, the Club signed a new long-term contract to televise football matches of the Campeonato Brasileiro, for the 2019 to
2024 seasons. The outstanding amount at December 31st, 2021 refers to an advance payment to be appropriated in subsequent
months.
(ii) Federal and state laws currently in force allow taxpayers to invest part of what they would pay in taxes in sports projects approved
by the government. The percentages to be allocated to projects as tax incentives vary according to the tax in question (e.g. IRPJ,
IRPF, ICMS) and the nature of the taxpayer - individuals or legal entities. As a rule, the resources obtained by the Club are
managed in a specific bank account, according to procedures defined by the competent bodies, and are subject to accountability,
with the subsequent filing of the completed project.
(iii) In April 2019, the Club signed, with the State Government of Rio de Janeiro, the authorization agreement for the use of the
Maracanã stadium, with Fluminense Football Club as the intervening party. Renewed according to the 6th onerous Authorization
Agreement for the use of public assets (TPU) on November 1st, 2021, published in the Official Gazette on November 26th, 2021.
The balance of advance payments Maracanã refers to advance receipts from the sale of private boxes.
44
December 31st, 2021
16. Shareholders' equity

As mentioned in Note 1, Flamengo was incorporated for an indefinite term, with a legal personality
distinct from its associates, who are not jointly or severally liable for the obligations contracted by
the Club.
Under the item “Equity valuation adjustment”, the Club recognized, in previous years, the effects of
the application of the attributed cost on its fixed assets and investment property, the balance having
been realized, in the fiscal years 2021 and 2020, by the depreciation and/or write-off of the assets
that gave rise to it.
The item “Accumulated surplus” reflects the accumulated surplus, net of surplus, since the
incorporation of the Club.
17. Net operating revenue

2021 2020
Gross operating revenue
Football 1.008.360 614.592
Social club and amateur sports 73.419 54.021
1.081.779 668.613
Taxes and contributions (35.767) (16.866)

Arena rights (20.584) (7.654)
Deductions from revenue (56.351) (24.520)
Net revenue 1.025.428 644.093
The increase in net operating revenue is due to: (i) an increase in broadcasting rights, premiums
and sponsorship in the amount of R$239,173; (ii) an increase in digital media and licensing in the
amount of R$118,465; and (iii) an increase in athlete transfers by R$73,341.
45
December 31st, 2021
17. Net operating revenue – Continued

Football
2021 2020
Conventional media and advertising 422.428 182.969

Fixed broadcasting rights 63.891 39.103
Participation, exhibition and performance 198.294 48.925
Sponsorship and advertising 160.243 94.941
Digital media and advertising 229.901 104.066

Digital media and “on demand” services 187.706 91.850
Licensing and royalties 42.195 12.216
Match operations 70.134 92.044

Box office (i) 28.067 26.700
Stadium 4.253 3.412
Fan Club Members 37.814 61.932
Athlete transfers 278.416 221.962

Sale of federative rights (ii) 268.574 195.233
Loans/Solidarity mechanism 9.842 26.729
Others 7.481 13.551
1.008.360 614.592
(i) The Club obtained R$ 28,067 in match revenue in fiscal year 2021 (R$ 26,700 in 2020), as detailed below:
2021
% of net income
Gross revenue Direct costs of over gross Number of
from matches matches Net income revenue matches
Libertadores 15.066 (5.863) 9.203 61% 6

Campeonato Carioca - (1.833) (1.833) 0% 14
Campeonato Brasileiro 9.195 (10.598) (1.403) (15%) 25
Copa do Brasil 3.806 (2.668) 1.138 30% 4
28.067 (20.962) 7.105 25% 49
2020
% of net income
Gross revenue Direct costs of over gross Number of
from matches matches Net income revenue matches
Libertadores 4.516 (2.583) 1.933 43% 4

Campeonato Carioca 12.607 (11.856) 751 6% 16
Campeonato Brasileiro - (2.447) (2.447) - 13
Copa do Brasil - (405) (405) - 2
Outras rendas 9.577 (6.217) 3.359 35% 1
26.700 (23.508) 3.191 12% 36
46
December 31st, 2021
17. Net operating revenue – Continued

Football – Continued
(ii) The main sales of 2021 and 2020 were:
Amount
Year Athlete Club (USD/EUR) Amount R$
2020 Caio Roque NV Lommel SK EUR 1.500 9.915

2020 Matheus Sávio Hitachi Kashiwa Reysol Co. USD 1.000 5.198
2020 Pablo Mari Arsenal Football Club PLC EUR 4.000 24.493
2020 Vinícius Souza NV Lommel SK EUR 2.500 16.526
2020 Reinier Jesus Real Madrid Club de Fútbol EUR 30.000 139.101
195.233
2021 Lincoln Correa dos Santos Rakuten Vissel Kobe, Inc USD 3.000 15.923
2021 Yuri César Silva Shabad Al Ahli Bubai Company LLC USD 6.000 31.896
Pablo Marí (Bônus 10 e 20
2021 Arsenal Football Club PLC EUR 2.000 12.730
partidas)
2021 Gerson Santos da Silva Olympique de Marseille EUR 20.500 123.412
2021 Nathan Bernardo de Souza Red Bull Bragantino Futebol Ltda. R$ 22.143 22.143
2021 Jean Lucas de Souza Oliveira Sell-on-fee venda para AS MONACO EUR 1.867 11.387
2021 Rodrigo Muniz Carvalho Fullham Football Club Limited EUR 8.000 49.004
2021 João Lucas Cuibá Esporte Clube Ltda. R$ 2.000 2.000
2021 Hugo Gomes Kalmar Fotbollsforening USD 14 79
268.574
Social club and amateur sports
2021 2020
Conventional media and advertising 21.193 18.449

Fixed broadcasting rights 334 471
Sponsorship and advertising 20.859 17.978
Digital media and licensing 23.319 14.652

Licensing and royalties 23.319 14.652
Match operations 96 210

Box office and Stadium 96 210
Others 28.811 20.710

Membership 20.226 16.552
Sports schools 5.218 2.902
Others 3.367 1.256
73.419 54.021
47
December 31st, 2021
18. Cost of social and sports activities

2021 2020
Salaries, charges and benefits to employees (269.330) (236.439)

Image rights (84.800) (96.408)
Expenses with athlete trades (28.524) (40.420)
Transfer of economic rights (28.023) (16.477)
Expenses with matches and competitions (46.032) (30.192)
Water and sewage (3.523) (2.902)
Electricity, telephone and gas (7.902) (6.808)
Materials (12.195) (10.243)
Freights and transportation (359) (244)
Amortization of rights over athletes (136.898) (122.558)
Write-off of economic rights of professional athletes (41.094) (5.201)
Write-off of economic rights of athletes in training (78.157) (17.002)
Depreciation of fixed assets/amortization of other assets (5.552) (5.247)
Advisory and Consulting (2.017) (977)
Maintenance (8.447) (7.875)
Professional services (931) (4.959)
Others (7.826) (10.996)
(761.610) (614.948)
19. Administrative expenses

2021 2020
Salaries, charges and benefits to employees (26.175) (18.154)

Miscellaneous covenants (1.172) (12.171)
Advisory and consulting (8.775) (4.412)
Attorney’s fees (2.270) (5.207)
Provision for contingencies (2.193) (30.658)
Third-party services (875) (837)
Other expenses (4.303) (2.330)
(45.763) (73.769)
20. Other net operating revenues (expenses)

2021 2020
Depreciation and amortization of other assets (766) (673)

Social and sports activities (2.758) (5.453)
Provision for doubtful credits (7.453) (2.335)
Other expenses (615) (331)
(11.592) (8.792)
48
December 31st, 2021
21. Financial revenues (expenses), net

2021 2020
Financial expenses
Interest and charges on loans (9.971) (13.489)
Monetary correction (10.495) (5.173)
Exchange rate variation - (25.126)
Others (958) (1.505)
Total financial expenses (21.424) (45.293)
Financial revenues
Discounts obtained 30 1.184
Monetary correction 2.829 2.159
Exchange rate variation 309 -
Adjustment to present value 7.360 436
Income from financial investments 397 206
Total financial revenues 10.925 3.985
Financial revenues (expenses), net (10.499) (41.308)
22. Transactions with related parties

i) Compensation of key management and governance personnel
2021 2020
Salaries and social charges 7.534 8.682

7.534 8.682
Key Management and Governance personnel represent the Club’s officers who are
involved in the day-to-day operations.
49
December 31st, 2021
23. Additional disclosure of income

Presentation of the operating income, to comply with the guidelines issued by ITG 2003 (R1), as
follows:
2021
Football
(professional Olympic
and amateur) sports Social club Others Total
Net operating revenue 944.354 33.062 19.427 28.585 1.025.428

Cost of social and sports activities (693.507) (41.431) (21.994) (4.678) (761.610)
Gross income 250.847 (8.369) (2.567) 23.907 263.818
Operating expenses/revenues
Administrative expenses (2.721) - (248) (42.794) (45.763)
Expenses with social and sports
activities (2.753) - (38) (15.527) (18.318)
Other expenses/revenues (2.896) - - (8.696) (11.592)
(8.370) - (286) (67.017) (75.673)
Operating income before financial
income 242.477 (8.369) (2.853) (43.110) 188.145
2020
Football
(professional Olympic
and amateur) sports Social club Others Total
Net operating revenue 589.185 23.429 16.023 15.456 644.093

Cost of social and sports activities (562.716) (33.046) (17.364) (1.822) (614.948)
Gross income 26.469 (9.617) (1.341) 13.634 29.145
Operating expenses/revenues
Administrative expenses (11.349) - - (62.420) (73.769)
Expenses with social and sports
activities (3.863) - (78) (8.257) (12.198)
Other expenses/revenues (5.441) - (10) (3.341) (8.792)
(20.653) - (88) (74.018) (94.759)
Operating income before financial
income 5.816 (9.617) (1.429) (60.384) (65.614)
50
December 31st, 2021
24. Financial instruments and financial risk management

24.1. Classification of financial instruments by category
Fair value hierarchy
Financial instruments recognized at fair value can be measured at levels 1 to 3, based on

the degree to which their fair value is quoted, as follows:
Level 1: fair value measurement is derived and quoted (uncorrected) prices in active
markets, based on identical assets and liabilities.
Level 2:fair value measurement is derived from other quoted inputs included in Level 1,
which are quoted through an asset or liability, either directly (i.e. as prices) or indirectly
(i.e. derived from prices).
Level 3: fair value measurement is derived from valuation techniques that include an asset
or liability that does not have an active market.
The following tables present the composition of financial assets and liabilities as of
December 31st, 2021 and 2020:
Accounting balance
Classification by Fair value
Financial assets category hierarchy 2021 2020
Cash and cash equivalentes Fair value through

income Level 2 127.182 50.988
Accounts receivable Amortized cost - 38.427 11.215
Accounts receivable from player
transfer Amortized cost - 77.194 99.624
Prepaid expenses Amortized cost - 17.234 8.928
Judicial deposits Amortized cost - 52.958 44.185
312.995 214.940
Accounting balance
Classification by Fair value
Financial liabilities category hierarchy 2021 2020
Suppliers and other obligations Amortized cost - 28.387 24.614

Accounts payable from player Amortized cost
transfers - 204.735 270.431
Loans Amortized cost - 70.676 59.625
Labor and social obligations Amortized cost - 31.776 39.153
Advance payments received Amortized cost - 136.628 151.095
Miscellaneous credits Amortized cost - 955 950
473.157 545.868
Financial assets and liabilities accounted for at amortized cost approximate their respective
fair values, as they are adjusted by provisions, present values and/or restated by post-fixed
market rates.
51
December 31st, 2021
24. Financial instruments and financial risk management – Continued

24.2. Risk management
The Club's activities expose it to several risks: market risk (including currency risk, fair value
interest rate risk, cash flow interest rate risk and price risk), credit risk. and liquidity risk.
Management is fully responsibility for establishing and overseeing the Club's risk
management framework and is also responsible for developing and monitoring these
policies.
Risk management policies have been established to identify and analyze the risks to which
the Club is exposed, to set adequate risk limits and controls, and to monitor risks and
adherence to the limits imposed. Risk policies and systems are regularly reviewed to reflect
changes in market conditions and in the Club's activities.
The main risks for the Club are assessed below.
a) Market and interest rate risk
Market risk is the risk that changes in market prices, such as interest rates, have on the
Club's income or on the value of its interests in financial instruments. The objective of
market risk management is to manage and control exposures to market risks, within
acceptable parameters, while optimizing return.
The Club's Management actively monitors market fluctuations, but does not operate
with derivative financial instruments as a way to hedge against market risks, using,
whenever possible, the natural hedge arising from accounts payable and accounts
receivable held in foreign currency in the closest possible amounts.
The Club has gains or losses arising from fluctuations in interest rates on its financial
assets and liabilities. Thus, market risks are related to the interest rates of short-term
investments or bank indebtedness.
52
December 31st, 2021
24. Financial instruments and financial risk management – Continued

24.2. Risk management – Continued
b) Liquidity risk
Liquidity risk is the risk in which the Club will face difficulties in meeting obligations
associated with its financial liabilities that are settled with cash payments or with another
financial asset. The Club's approach in the liquidity management is to ensure, as much
as possible, to always have sufficient liquidity to meet its obligations when they become
due, under normal and stress conditions, without causing unacceptable losses or with
risk of hindering the Club's reputation.
The Club also monitors, through budget and monthly reviews, the expected level of
inflows by cash flows on accounts receivable from third parties, together with expected
outflows due to accounts payable with suppliers and other obligations, as well as risk
analysis through the financial fair play indicators recently adopted by the CBF.
c) Credit risk
Credit risk is the risk that the counterparty to a deal will not fulfill an obligation under a
financial instrument or contract with the customer, which would lead to a financial loss.
The Club is exposed to credit risk in its operating (mainly with respect to Accounts
receivable) and financing activities, including deposits with banks and financial
institutions, foreign exchange transactions and other financial instruments. In the event
of an imminent risk of non-realization of these assets being verified, the Club records
provisions to bring them to their probable realization value.
d) Foreign currency requested
The Club has accounts receivable and payable in foreign currency (mainly US dollar
and Euro) as a result of international transactions mainly related to the trading of rights
over professional athletes. The risk related to these assets and liabilities arises from
the possibility of the Club incurring losses due to fluctuations in exchange rates. Foreign
currency liabilities represent 17% of total liabilities on December 31st, 2021 (14% on
December 31st, 2020). The Club has no derivative financial instruments contracted for
hedge against exchange rate fluctuations. Management understands that the risk of
exposure to foreign currency is not relevant in relation to the equity and financial
position.
53
December 31st, 2021
25. Insurance
The Club has life insurance contracts for all athletes, including those with a learning grant, as
established in Art. 45 of Law 9.615/98 and subsequent amendments. The contracted premium is
R$29 for 585 athletes, with a total insured capital of R$142,844.
The Club has insurance contracts for operational coverage (material damages) for the following
assets (i) Gávea Headquarters - R$108,915; and (ii) CT and Vargem Grande - R$50,538, with a
maximum indemnity limit of R$100,000 and in force until August 7th, 2022.
The Club has civil liability insurance contracts with coverage for Gávea and the Training Center
(CT), with a maximum indemnity limit of R$30,000 and in force until July 25th, 2022.
26. Subsequent events

Below we list subsequent events that have occurred to date and will impact the financial
statements for the next period:
Sale of economic rights of the following athletes:
Michael Richard to Al Hilal Al Saudi for R$ 45,197

Max Alves to Colorado Rapids for R$ 4,185
Piris da Motta to Cerro Porteno for R$ 5,673
Kayke Soares to Shabab Al Ahli for R$ 1,618
Fabrício Rodrigues (Bill) to Dnipro-1 for R$ 2,271
Purchase of economic rights of the following athletes:
Mário Sérgio Costa (Marinho) of Santos FC for R$ 6,456

Thiago Maia from Losc Lille AS for R$ 24,068
Fabrício Bruno from Red Bull Bragantino for R$ 15,135
Giorgian de Arrascaeta from Defensor Sporting for R$ 7,846
Pablo Nascimento Castro for R$ 16,677
54
December 31st, 2021
Luiz Rodolfo Landim Machado

Presidente
Rodrigo Tostes Solon de Pontes

Vice-Presidente de Finanças
Cristiano Siqueira Zubelli

Contador
CRCRJ 087966/O-4
55

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Financial Statements 2021

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LETTER FROM THE PRESIDENT

In 2021, we reinforced these actions with several projects, among which we

In a year of great uncertainty regarding the “return to normalcy”, we followed the

Copa Libertadores da América Final Round of 16

Campeonato Brasileiro 2nd Place Champions

Other Financial and Operational Performance Indicators

Number of Supporter’s Club

Adjusted Ebitda Margin 1 (%) 36% 21%

Chart 1 – Gross Operating Revenue (R$ million) 2

Broadcast Commercial Matchday Social and Others Athletes

2013 2014 2015 2016 2017 2018 2019 2020/A 2021/A

Personnel Expenses Transfer of Athletes

Chart 5 – Ratio of Personnel Expenses to Net Revenue

2013 2014 2015 2016 2017 2018 2019 2020/A 2021/A

Chart 7 – Uses and Sources (of resources and their destinations)

Today, Flamengo's cash reserves are equivalent to approximately three months of

2013 2014 2015 2016 2017 2018 2019 2020 2021

Player's Rights Youth Development Infrastructure

Chart 10 – Net Operating Indebtedness (R$ million)

Chart 11 – Net Operational Indebtedness / EBITDA

2013 2014 2015 2016 2017 2018 2019 2020/A 2021/A

Chart 12 – Net Financial Indebtedness (R$ million)

Chart 13 – Net Working Capital (R$ million)

Chart 14 – Shareholder’s Equity (R$ million)

Regarding the COVID-19 pandemic, there is a perspective of normalization of the

Independent auditor’s report on the financial statements ..................................................................... 1

Audited financial statements

Balance sheet ......................................................................................................................................4

Basis for opinion

Emphasis – Adherence to the Program for Modernization of Management and Fiscal

Management's responsibilities for the financial statements

Auditor's responsibility for the audit of the financial statements

Rio de Janeiro, March 21 2022

ERNST & YOUNG

Note 2021 2020

Total assets 1.066.627 944.522

Note 2021 2020

Total liabilities and shareholeders equity 1.066.627 944.522

The explanatory notes are an integral part of the financial statements.

Nota 2021 2020

Net operating revenue 17 1.025.428 644.093

Cost of social and sports activities 18 (761.610) (614.948)

Gross income 263.818 29.145

Administrative expenses 19 (45.763) (73.769)

Operating income before financial income 188.145 (65.614)

Financial expenses 21 (21.424) (45.293)

Surplus (deficit) for the fiscal year 177.646 (106.922)

The explanatory notes are an integral part of the financial statements.

Surplus (deficit) for the fiscal year 177.646 (106.922)

Other comprehensive income - -

Total comprehensive income 177.646 (106.922)

The explanatory notes are an integral part of the financial statements.

Balance as of December 31st, 2019 240.011 (111.880) 128.131

Deficit for the fiscal year - (106.922) (106.922)

Balance as of December 31st, 2020 237.022 (215.813) 21.209

Surplus for the fiscal year - 177.646 177.646

Balance as of December 31st, 2021 234.033 (35.177) 198.856

The explanatory notes are an integral part of the financial statements.

(Increase) decrease in assets an increase (decrease) in liabilities

Interest payment (9.639) (14.272)

Net cash generated in operational activities 316.742 110.412

Cash flow from investment activities

Cash flow from financing activities