Flamengo approves contracts with BRB and will receive R$40 million per year

First, Pixbet made a much higher proposal for the prime space on the shirt, worth R$85 million. BRB left and went to the omoplata on a short buffer contract while the long-term partnership was agreed.

Under the new agreement, the club receives R$25 million per year for displaying the BRB brand on the shoulder blade of the shirt, in a two-year contract.

But there are separate businesses for Banco Nação. Under the terms, BRB has three more contracts with the club. For one of them, the Bank has to pay Rubro-negro R$0.30 for each customer annually – the number was once 3 million, but has fallen. The minimum payment for this licensing is R$15 million. Added together, the two values ​​are R$40 million.

This licensing agreement, which is valid for five years, is linked to the first. If the sponsorship on the shirt ends after two years, the licensing will have a minimum value of R$25 million.

In addition, there is another contract that establishes the structure and governance of Banco Nação. BRB will be the manager and will hold 100% of the shares. But Flamengo is entitled to 45% of all incoming flow, whether dividends generated by profit or a possible sale to an investor.

Flamengo’s intention to adopt this model is to have no risk in the bank’s eventual financial performance. The sponsorship and licensing values ​​are guaranteed to be close to the master sponsorship until 2023. The rest, this profit or sales variable, remains as a possible extra.