Adidas and Flamengo Closing in on Contract Renewal
Mar 9, 2024, by Pat
- Contract Renewal Talks: Flamengo and Adidas are in advanced negotiations to renew their contract, which is set to expire in 2025.
- Financial Adjustments: The renewal involves adjusting the fixed payment and royalty percentages, with the possibility of an increased fixed amount.
- Contract Length: While Adidas proposed an eight-year renewal, Flamengo prefers a shorter deal, likely between four and six years.
Flamengo and Adidas are in advanced talks to renew their deal, expiring in 2025, according to UOL.
Negotiations involve adjusting fixed amounts and royalty terms, with a potential extension beyond the current contract. The existing deal yields Flamengo between R$60 million and R$70 million (€11-13 million), mainly through a 35% cut from item sales.
While Adidas proposed an eight-year renewal, Flamengo prefers a shorter term, likely between 4 and 6 years. Flamengo's kits have been made by Adidas since 2013.
Most commercial conditions are settled, pending final details. A higher fixed amount and adjustments to royalty percentages are expected, though shirt royalties will likely remain at 35%.
Legal scrutiny within Flamengo's department precedes finalizing commercial terms, which have been informally discussed with the club's board. Despite likely renewal, final adjustments are needed before presenting the contract for board approval, potentially securing a renewal one year ahead of schedule.
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