Flamengo provides clarification on new contract with Maracanã
By Flamengo Communication - inAs expected, the new contract has already brought positive opportunities for Flamengo. Among them are the projected reduction of operating expenses in the short, medium, and long term; new revenue from VIP boxes, bars, and restaurants; and increased benefits offered to our fan club members, which is already reflected in the increase in participants in the Nação Rubro-Negra Program. That said, using only reports detailing revenue, expenses, and net game results (borderôs) to analyze the financial performance of the new contract is a mistake.
The current agreement also allows Flamengo to operate, whenever possible, with lower ticket prices, something that was unfeasible during previous years of financial restructuring. However, our primary goal is not to increase ticket revenue, but rather to bring the Nação Rubro-Negra (Red-Black Nation), our 12th player, ever closer to the team and provide an increasingly better experience for our members and fans.
With a two-and-a-half-year term, the new contract allows for a reduction in operating expenses. First, the maximum rent charged to Flamengo will be R$700.000, unlike the previous agreements signed with Consórcio Maracanã S.A. For comparison, it's worth noting that the 2013 Copa do Brasil final was charged R$2,1 million. Similarly, the minimum rent will no longer be R$250.000, but R$120.000. Furthermore, it will be possible to improve negotiations with suppliers and service providers.
Regarding revenue, the proceeds from box office and bar sales are added to the box office, which are presented to the club after the matches and are not included in the ticket sales. It's important to remember that under the previous contract, due to the unpredictability of the number of matches Flamengo would play at Maracanã, box sales were more difficult, and we lost revenue. Now, the 48 boxes we're entitled to are sold seasonally, allowing the club to project higher revenue from these deals and attract large companies and commercial partners to these spaces.
The predictability of Maracanã matches also allowed us to sell game packages to fan club members, who occupy an average of 50 to 60% of the stadium, with a lower average ticket price of around R$18,00. This is an important point because, while we offer more benefits to Nação Rubro-Negra participants, we attract new members, thus increasing revenue that also doesn't appear in the ticket sales, but is crucial to strengthening Flamengo's football.
Maracanã will be our home until the end of 2020. As consistently full as it has been, it will be a great ally in winning the titles we deserve. And if a new bid for the stadium concession is held, we will have ample conditions to win it and further strengthen our identity with this temple of football.