Rejected rival bid and concerns over figures may sink New Balance renewal | OneFootball

Dissatisfaction with the numbers presented and the revelation that a R$ 40 million offer from a competitor was turned down could lead São Paulo’s Deliberative Council to reject the agreement to renew the club’s contract with New Balance.

AVANTE MEU TRICOLOR has learned that council members have been moving behind the scenes to prevent the renewal with New Balance from being put to a vote without prior debate.

The topic was added to the agenda of an extraordinary meeting scheduled for the 6th (Monday), but there is a push to postpone the decision and broaden the discussion before any vote.

The move includes an attempt to summon marketing director Eduardo Toni to provide formal explanations.

The strategy involves a formal request to Council president Olten Ayres de Abreu Júnior, asking that the matter be forwarded to club president Harry Massis Júnior.

The most critical council members believe that, although the contracts have been made available, the current administration is rushing to put the matter to a vote.

Internally, the main point of resistance lies in the weight of the proposed deal. It is a contract running through 2032, with an initial termination clause of R$ 200 million, structured on a declining scale over the years: it starts at that level in 2026 and is progressively reduced until reaching R$ 50 million in the final year, with a requirement of 180 days’ notice for any potential termination.

In addition to the length and the steep penalty, the deal provides for a significant increase in revenue. The projection is growth of up to 40% compared to the current contract, which would bring in up to R$ 25 million per season.

Under the new model, the annual amount would range between R$ 30 million and R$ 35 million, combining fixed and variable sums. The royalty structure will be maintained, but with one important change: there will now be a floor of R$ 15 million, regardless of sales volume.

Behind the scenes, the discussion has also been shaped by the revelation that the club refused to open talks with Penalty, which contacted Toni and offered higher immediate gross figures, ranging between R$ 35 million and R$ 40 million.

The internal assessment, however, is that the deal with New Balance would be more beneficial for Tricolor, allowing greater brand exposure, a stronger distribution network, and variable amounts that could reach as much as R$ 60 million per year.

These claims are also prompting some council members to demand explanations from the marketing director before the body in the coming days.

The kit issue is another trigger further complicating the atmosphere given the club’s current political moment. The recent rejection of the 2025 financial statements, still tied to Júlio Casares’s administration, exposed weaknesses in internal coordination. The vote ended with 88.6% voting against, after an initial attempt was annulled due to a system error, and was interpreted by many within the club as a sign of wear and tear.

There is, however, a different reading within the current administration. Sources close to the management downplay the impact of the episode and believe the emphatic result reflected a reaction aimed at Casares, without necessarily indicating a loss of the current support base. With a simple majority quorum required to approve the new contract, there is confidence that the renewal will be ratified, even amid attempts to broaden the debate.

The initial agreement between São Paulo and New Balance began in January 2024 and runs through the end of 2027. The renewal was supposed to have been finalized at the end of last year, but it ended up being delayed because of the club’s behind-the-scenes problems, which culminated in Julio Casares’s resignation from the presidency.

At first, this is yet another commercial partner of Tricolor securing its stay with the club at least through 2030, the year the centenary will be celebrated. Other sponsors, such as Superbet, have already extended their ties.

With the renewal moving forward, the agreement will have a total duration of nine years, consolidating one of the longest relationships in Brazilian football in this segment. In São Paulo’s case, if the new contract is fulfilled in full, New Balance will become the company that has supplied the club’s kits for the longest uninterrupted period. Adidas (1985-1991), Penalty (1991-1996), and Reebok (2006-2012), each with six years, are the current record holders.

Since the beginning of the partnership, New Balance has been responsible for producing the kits for São Paulo’s men’s and women’s teams, covering all levels, from youth divisions to the professional squad. The contract also includes the development of licensed products and joint commercial initiatives.

It is worth noting that this year the American brand will no longer serve only São Paulo. It will also begin supplying Grêmio’s kits, which in practice means that the one-year exclusivity period for Tricolor provided for in the contract will never be fulfilled (the Morumbi club allowed New Balance to continue serving Bragantino until the end of last year’s Campeonato Paulista).

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