Flamengo signed a contract with a guaranteed payment of US$ 28.5 million (R$ 151 million) with socios.com for the sale of Fan Token. The commitment still needs to be approved by the Deliberative Council. If approved, it will be valid for four and a half years until the end of 2025.
The company socios.com owns a cryptocurrency and, to promote it, it forms associations with major brands for the sale of Fan Token. The system works as follows: Tokens that can only be purchased with the cryptocurrency are launched and, with this, this becomes more popular and increases in price.
In Brazil, socios.com has already launched Corinthians and Atlético-MG products. Abroad, he made similar partnerships with teams from the NBA, PSG, Barcelona, City, among others.
Flamengo’s Fan Token should be sold for US$ 2.00, a price similar to other Brazilian teams. From then on, the club keeps half of the revenue, and the company keeps the rest. The entire operation will be carried out by socios.com that .
But there are values guaranteed by the agreement made between the club and the company. There is a $13.5 million minimum revenue for the four and a half years, around $3 million per year (R$16 million). If half of the amount collected is greater than this amount, Flamengo will have a larger share.
In addition, another $13.5 million will be paid as a licensing fee for the club’s brand. Finally, a surplus of $1.5 million is earmarked for remunerating social media advertising. Also included in the agreement are sponsorships for the base team jersey, women’s, training shirt. Thus, the total guaranteed is US$ 28.5 million (R$ 151 million) for four and a half years.
The terms of the agreement were presented to Flamengo’s Board of Directors on Wednesday night. Approved in this instance, they will be taken to the Deliberative Council on a date next week. The intention is a quick approval because the club would already receive an advance amount of R$17 million.
The negotiation of this contract was quite long, which made the red-black Fan Token take longer to enter the market. In addition to the clubs, CBF has also sold the product with the Bitici company. It is a competitor that also negotiated with Brazilian clubs.
The estimated amount of revenue just above R$ 30 million per year is close to the gain with the main rubro-negro master sponsor BRB. It represents another revenue boost in the club’s marketing, which has increased revenue over the period.