Court releases R$66 million, Libra says Flamengo’s strategy fell flat | OneFootball

The behind-the-scenes dispute within LiBRA (Brazilian Football League) has gained another chapter. Judge Lúcia Helena Passos has ordered the unblocking of R$ 66 million, which had been withheld due to an injunction filed by Flamengo. The amount refers to a portion of the broadcasting rights for the Brazilian Championship. Meanwhile, R$ 17.8 million remain blocked.

In an official statement, Libra stated that the court’s decision reinforces the organization’s “coherence, purpose, responsibility, and vision.” The association also said that Flamengo did not present a new calculation identifying the amount the club believed it should receive.

“The unblocking of the R$ 66 million, which was disproportionately withheld, brings relief to the cash flow and planning of everyone in this final stretch of the Brazilian Championship. It also clearly demonstrates that the attempt to financially suffocate the other clubs in the Association was a strategy chosen by the Rio club and that it did not work,” the statement begins.

“It is also clear and evident, in the text of the decision, that Flamengo never presented any calculation identifying, in the appeal petition, the amount the club believed it was entitled to. This alone, and obviously, justified the decision being handed down in favor of the LiBRA clubs,” it continued.

Understand the case

In September, Flamengo filed a lawsuit and obtained an injunction from the Rio de Janeiro Court of Justice to block the transfer of R$ 83 million from a portion of the broadcasting rights of the Brasileirão that were to be distributed to the Libra clubs. The reason for the lawsuit, according to Flamengo, was dissatisfaction with the criteria adopted by Libra in the division of TV revenues, especially the 30% share linked to pay-per-view audience.

The club argued at the time that the division does not adequately recognize its revenue-generating power, which represents about 47% of the total fan base of the league’s teams, and claims to have tried to resolve the impasse amicably before resorting to the courts.

Libra criticized Flamengo’s action and classified the measure as unilateral and harmful to the clubs that depend on this money for cash flow, bill payments, and salaries. The entity also stated that Rubro-Negro’s argument about losses does not match the club’s financial situation and serves its own short-term interests to the detriment of the group.

Palmeiras, Santos, São Paulo and Red Bull Bragantino spoke out against Flamengo’s action at the time, demanding “respect” for the agreements made within the league. In October, the judge had overturned the injunction requested by the Rio team, considering there was an “excessive block.”

Read LiBRA’s full statement on the decision

“This week’s decision goes beyond judicial recognition: it confirms that LiBRA is on the right path and restores normality to the Association’s environment. The unblocking of the R$ 66 million, which was disproportionately withheld, brings relief to the cash flow and planning of everyone in this final stretch of the Brazilian Championship. It also clearly demonstrates that the attempt to financially suffocate the other Clubs in the Association was a strategy chosen by the Rio club and that it did not work.

It is also clear and evident, in the text of the decision, that Flamengo never presented any calculation identifying, in the appeal petition, the amount the club believed it was entitled to. This alone, and obviously, justified the decision being handed down in favor of the LiBRA clubs.

Since its inception and formation, LiBRA has prioritized dialogue and collective understanding among its members with the aim of supporting and developing the best of Brazilian football for everyone. It was never the entity’s intention, at any time, to make public matters that should be maintained and debated with balance and serenity within the protected, technical, and appropriate environment of Committees, Meetings, and Assemblies.

After Flamengo decided to take its claim to court, Libra strictly followed the process, respected the confidentiality expressly requested by the Club, and handled the evidence in a technical manner within the correct scope, always and exclusively seeking clarification of the facts and appropriate handling of the matter.

Libra’s purpose has never changed: to build a model for the future of Brazilian football. Fairer, more sustainable, and more professional. The excellent decision by the Rio Court of Justice and Judge Lúcia Helena Passos reinforces that what is at stake is not a clash between clubs, but the institutional strengthening of our football and the entire business chain it involves. It is important to reaffirm that the decision does not address the merits and, therefore, there is no recognition regarding the scenarios presented and discussed. This will only be the subject of any discussion through a competent arbitration procedure.

We remain convinced that for there to be progress, it is absolutely essential to have stability and trust in institutions, leadership, entities, and Clubs. It is not through confrontation that advances are made in an association. Innovation and development require openness to constant dialogue, respect for rules of conduct and peers, understanding of any and all demands made by each of the Clubs, and governance so that decisions are made with support.

LiBRA remains strong, continues its intention to represent the Clubs in the formation of the long-dreamed National League, maintains its alignment with the LFU, and always believes that together we are much greater and better“

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