Why Flamengo earn 8x more than River Plate from Betano: 4 reasons | OneFootball

The Answer Goes Beyond the Brazilian and Argentine Markets

Flamengo will receive from Betano almost eight times more than River Plate (ARG). While the Argentinians earn R$ 34 million annually from their main sponsor, the Rubro-Negro closed a deal to receive R$ 268 million. To understand the case, Coluna do Fla sought out the reasons for this striking difference.

According to the report, four factors are crucial for this disparity in values: brand size, potential return, commercial strength, and competition. Thus, we have divided and explained each topic below.

WHY WILL FLAMENGO RECEIVE MUCH MORE THAN RIVER?

1 – Size and exposure of the Flamengo brand: The club has the largest fan base in Brazil (42 million supporters) and one of the largest in the world. It also dominates audiences in the country, both on TV and on the internet, which guarantees a much higher media return for any sponsor.

2 – Greater advertising and potential return: The Brazilian market is much more valuable for betting companies than the Argentine market. It is estimated that Brazil has three times more active online bettors than Argentina, which means more potential customers for Betano.

3 – The club’s commercial strength: Flamengo has become a benchmark in sponsorship negotiations in South America, securing values far above its rivals. River Plate has a large and passionate fan base, but it is more localized in Argentina.

4 – Market competition: In Brazil, there was competition among several betting companies to sponsor Flamengo (Betano, Superbet, Sportingbet, Esporte da Sorte, 7K Bet, and Betnacional). This competition inflates the contract value. At River, there was not the same level of bidding.

Betano will pay R$ 268 million per year to Flamengo because the club offers much greater media return, fan reach, and international exposure than River Plate. In addition, the company will establish a presence in the Brazilian market, which is much more profitable for betting companies than the Argentine market.

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