Part 2/7:
A distinction was made regarding the nature of expenses, particularly noting that some of these, like prepaid expenses, are primarily accounting matters rather than actual cash outflows. This understanding underscores the complexity of each club's financial situation, particularly with Flamengo experiencing a more significant debt increase compared to Palmeiras, although both clubs remain relatively stable.
Palmeiras, for example, has seen its debt rise primarily due to a substantial investment in player acquisitions, amounting to over 500 million Brazilian Reais. This increase is aimed at bringing in talent to enhance their team, reflecting their strategy to invest heavily in order to compete at high levels.