Flamengo To Receive Adidas Sponsorship Proposal Worth As Much As $229M Over 10 Years
Brasileiro club Flamengo's board of directors will receive "in the upcoming days" a 10-year sponsorship proposal from adidas that could be worth as much as R$465M ($228.9M), according to Braga and Mendes of LANCENET.com.br. The club will receive R$35M ($17.2M) starting in '13 with the amount increasing every year until the deal expires in '22. In the last year of the contract, the club could receive "as much as" R$57.1M ($28.2M). Flamengo's current sponsor Olympikus pays the club approximately R$18M ($8.9M) annually. If the deal is approved by Flamengo's BOD, the new adidas jerseys will be launched for the start of the Campeonato Brasileiro 2013. This week, the German company and the Rio club are "negotiating two clauses in the contract." One of the clauses concerns the possible future increase in value of the Flamengo brand and the club "wanting to safeguard itself in terms of the amount that would be received." Adidas' proposal to integrate Flamengo into its class A of clubs "will be taken to other European clubs" if the team passes up the deal. The offer "has generated resistance" from some sectors of the club because of the longevity of the contract (LANCENET.com.br, 10/8).