CODE approves new contract for the sale of advertising signs
The agreement applies to Flamengo's home matches in the Brazilian Championship from 2019 to 2022; the Council also approves a new licensing agreement for Escolinha Fla.
By Isabela Abirached - inAt an Extraordinary Meeting of the Deliberative Council this Thursday (20), at the Gávea headquarters, two new contracts for Flamengo's Marketing were approved: exclusivity for the sale of billboards and field properties between Flamengo and Sport Promotion, valid for the 2019 to 2022 editions of the Brazilian Championship, and licensing of Escolinhas Fla with Time Forte.
The club's Vice President of Marketing, Daniel Orlean, explained the strategic value of the deal signed with Sport Promotion.
"The increase in our revenue will be a major differentiator, since the annual revenue from the new contract will be double that of the current one with TV Globo, guaranteed by a bank guarantee. Furthermore, the The agreement respects Flamengo's autonomy in negotiations, as it stipulates that contracts will be signed by the club and payments will always be received by Flamengo,” the director explained.
Flamengo's CEO, Bruno Spindel, also celebrated the approval of the deal, an important achievement in the club's goal of diversifying revenue sources and a pioneering move by Flamengo on the national stage.
“It represents a huge opportunity for revenue growth, it’s a new line of our own revenue, in addition to creating commercial relationships with more than 20 brands that can also partner with Flamengo on other projects. This is a paradigm shift in Brazilian football and a sensational moment for the club within this continuous evolution of the management and performance process in all sports. We will continue on this path and we are absolutely certain that the partnership with Sport Promotion will be a success and an example in Brazilian football,” he said.
Fla Soccer School
At the same meeting, the new brand licensing agreement for the Escolinha Fla soccer school between Time Forte and Flamengo was also unanimously approved. Under the updated remuneration model, the club will have a minimum annual guarantee which, projected over the five-year contract term, generates an almost 100% increase in revenue. In addition, clauses were included that provide for the hiring of a management and performance consultancy to define performance indicators that will be monitored online by Flamengo.