The agreement includes a termination clause that sets a penalty proportional to the remaining term of the contract. Currently, this amount is estimated at between R$ 35 million (US$6.5m) and R$ 40 million (US$7.3m).
A meeting between Flamengo and Pixbet representatives will take place this Monday (11) to formally communicate the matter.
Pixbet may choose to match the competing offer or decide not to renew the partnership.
The contract with Pixbet is the largest main sponsorship deal in Brazil, projecting payments of R$ 105 million (US$19m) in the first year, R$ 115 million (US$21m) in the second, and R$ 125 million (US$23m) in the third, in addition to royalty bonuses linked to FlaBet.
Pixbet Soluções Tecnológicas Ltda. has been approved by the Ministry of Finance’s Secretariat of Prizes and Betting (SPA) and is authorized to operate three brands: Pixbet, Bet da Sorte, and FlaBet. It remains to be seen how the operation of the brand associated with Flamengo will be handled if the company does not match the competitor’s offer.
So far, neither Pixbet nor Flamengo have commented on the matter.
Source: GMB / Poder360
