The bookmaker has been Flamengo’s partner since July of this year, when it signed a contract to sponsor only the digital media of the club. Now, it has been agreed to expand this partnership so that there is exposure on the shirt and values much higher than the previous ones.
The payment forecast is divided as follows. If the agreement is approved by the directors, the sponsor will pay R$ 8.5m (US$2.1m) in 2020 and R$ 9m (US$2.25m) in 2021. The remainder is split between the agreement that was already in effect from July to October 2019 and part of the which is scheduled for the new deal, effective from November, according to information from Rodrigo Capelo, journalist specializing in sports business for Globoesporte.com.
Sportsbet.io replaces the Brazil University, the previous sponsor that paid R$ 3.5m (US$875,000) annually to be displayed on the shoulders; but had the contract broken after the university's owner was arrested by the Federal Police, accused of fraud in a federal student funding program.
Considering a fixed amount close to R$ 20m (US$5m) for two and a half years of contract, the sponsor is taking a risk. Betting has not yet been regulated in Brazil, which is why foreign companies are afraid to make large investments. With the sponsorship of Flamengo in this amount, which can still increase with variable payment, Sportsbet.io bet that this industry will grow.
Even without regulation in Brazil, foreign betting companies are extending their sponsorship to almost all Brazilian football. At the time of the first deal between Flamengo and Sportsbet.io, the newspaper O Globo pointed out that half of the Brazilian Championship already had some existing agreement with websites or bookmakers.
Bets were authorized in the country in December 2018, the last month of Michel Temer's government, with the implementation of Law 13.756 / 2018. However, regulation of the sector is still pending - that is, the Ministry of Economy must determine the rules for betting to be definitively released in the country. The deadline for this to happen is two years, renewable for two more.
Source: GMB / Globoesporte – Rodrigo Capelo
