Flamengo and clubs to split R$ 559 thousand after Cade agreement | OneFootball

Libra and FFU, blocs of Brazilian clubs, have reached an agreement with Cade. The deal frees both to admit new members and requires a R$ 559 thousand payment to be shared by five Libra sides including Flamengo.

According to Coluna Do Fla, Cade’s judgment was delivered on Wednesday, 11 February, in Brasília, reversing last year’s injunction that barred Libra and FFU from taking on new members during an investigation.

The payment will be covered by Flamengo, Palmeiras, Grêmio, Santos and São Paulo. Libra acknowledged an infraction, and those clubs met notification criteria and remained in the association for more than two years.

Last year Cade viewed the structures as contractual joint ventures that should have undergone prior control, characterising the move as gun jumping. Atlético-MG was also cited because it planned to switch from Libra to FFU.

Cade’s thresholds require at least one group involved to have recorded gross annual revenue in Brazil of R$ 750 million or more in the year before a deal, a criterion Flamengo and Palmeiras met in 2022.

A second threshold, of at least R$ 75 million for another group, was met in 2022 by Santos, São Paulo and Grêmio.

FFU welcomed the settlement as progress and will notify Cade within 60 days for a merits review it believes is pro-competitive. It says the approval ends the dispute over prior notification, recognises contract validity with investor partners, and ensures continuity and legal certainty for the modernisation project.

Source: Coluna Do Fla