Court orders BRB to halt payments to Flamengo amid sponsorship case | OneFootball

A court in Brazil’s Federal District ordered Banco de Brasília, BRB, on Friday to suspend payments to Flamengo under their sponsorship deal. The order could be maintained, amended or revoked.

Globo.com reports that judge Sandra Cristina Candeira de Lira, of the sixth Public Treasury Court, granted the interim measure in a popular action challenging the morality, impartiality and cost-effectiveness of the agreement, valued at more than R$ 42 million. BRB was the club’s main sponsor through 2024 and recently extended to 2027.

The claimant argues the bank is in a severe financial crisis, with suspected involvement in the Banco Master fraud, and says transfers to Flamengo could harm public assets and breach administrative principles.

The judge found the contract to be predominantly commercial, concluded solely between BRB and Flamengo, without direct involvement of the Federal District government. She noted BRB’s mixed-capital status with its own legal personality and administrative and financial autonomy, operating in a competitive market.

On that basis, the Federal District was removed from the case for lack of standing, and the Public Treasury Court declared itself incompetent to hear the suit, which will be reassigned to a Civil Court in Brasília.

Even so, the precautionary order remains to preserve the action’s usefulness pending fresh judicial analysis, temporarily suspending any new payments or transfers under the contested contract. The judge said documents show instalments and periodic advances to Flamengo, and warned that delay from redistribution could undermine effectiveness.

A court officer tried to serve the club at Gávea on 27 and 29 April and on 12 May, but delivery failed as the addressee was absent.

Flamengo received R$ 21,163,324.11 on 20 April, half of the R$ 42 million. On 13 May, Metrópoles reported the club had requested a 50% advance. BRB did not disclose the advance contract, citing commercial confidentiality.

Source: Globo.com