The Deliberative Council of the Rio de Janeiro football team, Flamengo was called to decide by vote on an amendment to the sponsorship contract with the sportsbook Sportsbet.io.
The partner requests the extension of the preemptive right to renew the settlement for the next 24 months. Since the Brazilian club was unable to achieve some goals set in the contract due to the pandemic of the new coronavirus.
The Fiscal Council and the Legal Committee have already given their approval for the extension of the term of preference.
Understand Sportsbet.io’s renewal preference right
In the current contract model, it is stipulated that in October Flamengo can evaluate sponsorship offers for the next season.
If you are interested in a proposal, the football club needs to inform Sportsbet.io to confirm whether the betting house is willing to cover the deal.
The company’s response needs to happen within two weeks. If free to close another partnership, Flamengo can cancel the agreement with Sportsbet.io for R $ 1.5 million.
Therefore, the issue of the addendum refers to increasing the preemptive right as follows: in case of a bidder’s bid for 2022, the offers need to be evaluated in October of next year. This same process will be repeated for 2023, with any proposal being received in October 2022.
For now, the agreement between Flamengo and Sportsbet.io is valid until the end of next year. For this reason, the company’s sports betting brand appears on the shoulder blade of the club’s shirt.
This year, the agreement will yield about R $ 8.5 million to Flamengo’s coffers, rising to R $ 9 million next season.
Voting
Voting for increasing the betting house’s preference time with the club will take place via email. Therefore, Flamengo’s councilors will be able to cast their votes until Wednesday, 16.
