Corinthians’ Sponsorship Contract Insights: Navigating Uncertainties with Flamengo – Analysis by Hugo Souza

Hugo Souza during the match between Corinthians and Flamengo (Photo: Ettore Chiereguini/AGIF)Written by Lance!• Published on 10/17/2024 – 06:45 • São Paulo (SP)

Brax issued an official statement to clarify the guarantee presented by Corinthians in the agreements with Flamengo to sign right-back Mathezinho and in the attempt to acquire goalkeeper Hugo Souza, loaned to the São Paulo club until December 2024.

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The company stated that it is in good standing with both clubs and explained that it will send Rubro-Negro the next installment relating to the contract signed with Corinthians, which will be deposited in January 2025.

To permanently acquire Hugo Souza, Corinthians will pay 800 thousand euros (R$ 5.8 million at current prices) for 50% of the economic rights. However, if the amount is not deposited (in cash) before the clash between the teams for the Copa do Brasil, on the 20th, the club will have to pay a new fine of R$500,000 to select the goalkeeper.

Contract between Corinthians and Brax

Commercial partners since the end of 2023, Corinthians and Brax renewed, this season, the contract between the parties to display advertising boards at team games at the Neo Química Arena. Valid for five seasons, between 2025 and 2029, the agreement provided for the payment of R$210 million. Augusto Melo, however, renegotiated the values ​​and increased the amount to R$240 million.

The brand’s partnership with Flamengo, in turn, resulted in a further increase in the value of the Corinthians contract. In the deal signed with Brax, there was a clause stipulating that the São Paulo club would receive the same amount as the Rio de Janeiro club, who signed for R$330 million.

Hugo Souza remains on loan contract at Corinthians until December 2024 (Photo: Ettore Chiereguini/AGIF)

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Check the official note from the sponsor

In light of the case between Corinthians and Flamengo regarding the negotiations involving goalkeeper Hugo Souza and right-back Matheuzinho, BRAX Sports Assets comes forward to clarify:

When Corinthians purchased the rights to full-back Matheuzinho, Flamengo required bank guarantees to complete the deal. The São Paulo club offered the contract it has with BRAX, valid from 2025 to 2029, for the operation of advertising boards.

Following the alleged delay in Corinthians’ installment in the acquisition of Matheuzinho, BRAX Sports Assets was notified by Flamengo regarding the execution of the guarantees.

Notified extrajudicially to send to Flamengo the flow of payments intended for Corinthians referring to the contract given as guarantee, BRAX responded with details of the agreement, informing that the next expiries of the contract will occur from January 2025. The contracts are in compliance.

BRAX Sports Assets reinforces that its relationship in this negotiation is only as a guarantor and its obligation is, in the event of any default on the part of the Corinthianspass on to Flamengo the amounts that by contract should be paid to Cornthians within the deadline and in the manner agreed between the São Paulo club and BRAX. Therefore, the company clarifies that there is no debt owed by BRAX to the clubs.

BRAX Sports Assets reaffirms its commitment and partnership with Brazilian football.

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