Betano and Flamengo: what’s at stake in the deal | OneFootball

The link between Flamengo and Betano was designed to be more than just a master sponsorship deal. The partnership covers different commercial properties of the club and provides for annual revenue of R$ 268.5 million.

The agreement began in August 2025 and is valid until December 2028, with revenue allocated to football, Olympic sports, FlamengoTV, commercial properties, and retail. The financial scale helps explain the importance of the debate over the end of betting sponsorships for Flamengo.

RTI Esporte Agency has learned that the structure provides for R$ 220 million in fixed annual payments earmarked for football. This is the largest share of the contract and represents the partnership’s main direct source of revenue. The remainder is distributed among other areas and properties operated by Flamengo.

How the R$ 268.5 million is distributed

Olympic sports receive R$ 12 million under the agreement. Betano also appears in properties related to sports such as volleyball, basketball, and women’s football, expanding the brand’s commercial presence within the club’s ecosystem.

Another R$ 10 million is tied to additional properties, such as LED advertising spaces and hospitality boxes. FlamengoTV also has a significant share, with R$ 10 million included in the annual breakdown.

Retail adds R$ 10 million to the contract, in addition to variable revenue. Starting from 400,000 jerseys sold, Flamengo receives R$ 10 per unit and, after 100,000 customers, R$ 65 for each new registered deposit.

In addition, new business involving FlamengoTV could add another R$ 5 million. The structure shows how the contract was built around different revenue triggers, rather than concentrating all compensation on brand exposure.

The impact on Flamengo’s planning

The importance of the deal has grown in light of Flamengo’s high budget and sporting commitments. A change to the contract would not affect only the shirt, but also other areas included in the negotiations.

The situation became even more delicate after the Provisional Measure signed by President Luiz Inácio Lula da Silva. Flamengo and Betano decided to keep the contract on “stand by” while awaiting a clearer definition of the regulatory landscape.

The company had already paid the club R$ 268 million relating to 2026. Flamengo itself estimates an annual impact of approximately R$ 400 million considering not only Betano, but also other businesses directly or indirectly affected by the end of betting sponsorships.

What does the Betting MP determine?

The MP signed by Lula on September 25 banned the operation, offering, intermediation, and advertising of fixed-odds betting in Brazil, including promotional actions and sponsorships. Existing advertising must also be removed within a set deadline.

The established timeline sets October 5 as the deadline for the voluntary removal of ads and sponsorship materials. The measure takes immediate effect, but it still needs to be reviewed by the National Congress.

Congress has a constitutional deadline to decide on its conversion into law. It is precisely within this interval that the main point of tension for Flamengo lies. The club has a long-term contract, with payments already made and future revenue expected through 2028.

Until there is a decision on the validity of the MP and its effects on contracts, the impact on the agreement with Betano remains open. Flamengo will have to preserve revenue and seek alternatives if a significant portion of that money stops coming into its coffers.

This article was translated into English by Artificial Intelligence. You can read the original version in 🇧🇷 here.