Sponsorship vote delayed, allied split deepens, Casares suffers again | OneFootball

São Paulo removed from the agenda of this Monday's (17th) Deliberative Council meeting the vote on the sponsorship contract with Magnum Bank, which would have placed the digital bank's brand on the sleeves of the team's match and training shirts.

Curiously, the request came from president Júlio Casares, following an alleged recommendation from Leonardo Serafim, identified as the legal consultant to the presidency, who pointed out the need for a deeper analysis before submitting the agreement to the council members.

The contract was signed last month and provides for a fixed annual payment of R$ 3.6 million to the club, with the possibility of an increase based on participation in banking revenues. If approved, the agreement would be valid until 2031.

Internally, however, AVANTE MEU TRICOLOR found that Casares' own political base had already indicated discomfort with the proposal and was preparing to take a stand against the project in the vote.

This is yet another defeat for Casares in the Council, a ground where not long ago he could boast of having absolute control. Due to lack of support from the body, for example, the São Paulo president decided to shelve the FIP (Investment and Participation Fund) project that would have opened the youth categories to external investment.

It is also, of course, a clear reflection of the internal war that the debate over Casares' succession has become and the lack of a clear, acclaimed candidate among allies to run in the elections at the end of next year.

The main legal concern is reportedly related to changes that the Central Bank is preparing for financial institutions. In a document dated the 9th, Serafim pointed out the “need to suspend the partnership agreement with Magnum” and classified it as a “prudent and strategic measure” to wait for the regulation.

According to him, developing a project without clarity on the new requirements could “expose the initiative to regulatory risks, fines, and even the need for substantial adjustments that could compromise its viability.”

Internally, there are other issues. Council members were bothered by the résumé of Roberto Graziano, the strongman at Magnum. He is known for other connections in the football world. His name was mentioned in a São Paulo Civil Police investigation into corruption at rival Corinthians. According to a note from the State Department of Public Security, the 3rd DPPC (Police Department for the Protection of Citizenship) identified the businessman as one of the main campaign financiers for Augusto Melo, the ousted president of the east zone team.

The council members' understanding is that first, there needs to be a better understanding of Magnum's history and the actions of its main executive. The board, in turn, justifies the retreat by saying that the club needs more time to analyze the contract and the financial institution itself.

Graziano was recently present at an official São Paulo event: the launch of a commemorative watch for the twentieth anniversary of the 2005 world championship treble. The initiative was developed with Magnum Watches, also linked to the businessman, which reinforces the intention to bring his brands closer to the club.

THE DETAILS

The sponsorship contract between São Paulo and Magnum Bank will yield R$ 3.6 million annually for the space on the sleeves of the training and match shirts, but there will also be additional variable revenue based on services offered by the bank.

The amount will be calculated based on percentages of some services offered, with others generating a fixed value.

The club seems to estimate the total annual revenue at around R$ 10 million, based on what the portal ‘R7’ published, although it treated the amount as guaranteed.

In almost all cases, Tricolor will only be entitled to what its fans consume on the bank's platform, including transactions with club-branded credit and debit cards.

The only exception is the 1% commission that will be generated on sales that the club originates for Magnum's digital platforms, “which connect sellers and buyers, allowing the commercialization of products and services.”

The contract does not specify how this volume will be calculated. There is also an item that brings an approximate value (of R$ 2.90), to be paid to São Paulo's coffers for each issuance of a personalized credit card, which is referred to as “Torcedor Anjo” or “Torcedor Santo Paulo.”

Here, however, there is the caveat that, for the revenue to be incorporated, São Paulo will need to offer some benefits to account holders, which have not yet been defined.

THE CONTRACT

Almost two years after the space was left vacant, São Paulo will once again have a sponsor on the sleeve of its shirt. Through its Magnum Bank brand, Magnum Sociedade de Crédito Direto will occupy the property, both on match and training uniforms, as AVANTE MEU TRICOLOR had already reported.

For this right, the brand will pay R$ 3.6 million to Tricolor annually until December 2031. The amount will be paid in monthly installments of R$ 300,000, which will be adjusted by the IPCA once a year.

In addition, São Paulo has committed to making its best efforts so that Magnum Bank credit card holders receive discounts when purchasing official shirts at SAO stores and have special actions at matches hosted by São Paulo, in an initiative that seems similar to when Banco Inter was the team's master sponsor, between January 2017 and February 2021.

Afterwards, between March 2023 and April 2024, the club had SPFC Bank, in partnership with Logbank, a project that failed due to neglect, which led to a very low number of customers: only three thousand in the last reported count.

Magnum Bank is part of the same group as the watch manufacturer Magnum, which this Thursday (13th) launched a commemorative watch for the twentieth anniversary of Tricolor's world championship treble. Last year, the company even negotiated a partnership with the club, but, as AVANTE MEU TRICOLOR found, a disagreement over values and a change in marketing strategies would have caused the talks not to move forward at that time.

Known for the watch factory that led the group, Magnum ended up launching its financial institution in December 2021. Exactly two years after buying the SAF of São Bernardo, a team from ABC Paulista that has been climbing the ranks and fighting for promotion to Serie B of the Brazilian Championship.

Led by businessman Roberto Graziano, a fervent Guarani supporter, Magnum has already been a shirt sponsor for the Campinas (SP) club and even took over the social administration of Bugre in 2014, but the partnership was dissolved the following year after the Deliberative Council blocked the purchase of the Brinco de Ouro stadium.

To remain in football, Magnum ended up taking over São Bernardo.

HOW MUCH DID THE LAST DEAL PAY?

The last brand to appear on the shirt sleeve was Bitso, which did so between January 2022 and November 2023, in a contract that was terminated thirteen months early and paid R$ 12.5 million per year, almost four times more than the new deal.

Two other properties on the match uniform remain vacant, although for less time: the shoulders, since Viva Sorte left in March, and the back hem, since the termination with Blue Saúde in September.

Currently, São Paulo raises approximately R$ 100 million annually from shirt sponsorships. A large part of this comes from Superbet, which in 2025 will pay R$ 78 million to the club. The contract provides for an adjustment in 2026.

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