MIÉ 25 DE NOVIEMBRE DE 2020 - 02:40hs.
Preemptive right

Flamengo's Deliberative Council to vote on Sportsbet.io contract extension

Sportsbet.io seeks extension of the preemptive right to renew the contract with Flamengo, which ends in December 2021. In the partnership signed between the parties, the club can analyze other sponsorship offers in October 2020, but the betting company wants to extend the deal for two years because Rio de Janeiro’s club did not deliver some counterparts due to the COVID-19 pandemic.

Flamengo's Deliberative Council was called last Friday to vote on an additive in the sponsorship contract with the betting company Sportsbet.io, which displays its logo on the the team's shirt. The partnership calls for the extension of the preemptive right of renewal for two years, since the club was unable to deliver some counterparts provided for in the agreement, due to the coronavirus pandemic. The Fiscal Council and the Legal Committee of the club gave a positive opinion.

In the current contract, it is established that in October 2020 Flamengo can receive and analyze sponsorship proposals for 2021. If it is interested in any of them, it needs to notify SportsBet.io to find out if the company intends to cover the offer - the answer has a deadline of 15 days. If free to accept another proposal, Flamengo can terminate the contract with SportsBet.io for R$ 1.5 million (US$280k).

The additive proposal consists of extending the preemptive right as follows: in case of interest from competitors to 2022, the proposals must be received and analyzed in October 2021. The same occurring in 2023, with the offers being analyzed in October of 2022.

The contract with Sportsbet.io ends in December 2021. The company currently prints its brand on the shoulder blade of Flamengo's shirt. In 2020, it will pay R$ 8.5 million (US$1.6m); in 2021, the value rises to R$ 9 million (US$1.7m).

Voting will be done by email, and Flamengo's advisors will be able to send their votes until September 16.

Source: GMB / GE