Brazilian football giant Flamengo has announced the early termination of its sponsorship agreement with Pixbet, resulting in their Flabet sportsbook joint venture closing.
The deal had been set to expire in December, although there was the potential for renewal until 2027. The Pixbet brand has been displayed on the team’s shirt since 2022.
The master sponsorship, worth approximately BRL470 million ($87.1 million), was touted as the largest club sponsorship in Brazilian football history.
However, Flamengo announced on Wednesday that it had terminated its agreement with the online operator, following reports of late payments from Pixbet.
After Pixbet became master sponsor of the club in January last year, the club announced plans to establish a Flabet brand that the operator would manage.
However, the Flabet brand will now close, with Flamengo rumoured to be in negotiations with other betting companies to take over the master sponsorship.
In a Wednesday note on its website, the club said: “Clube de Regatas do Flamengo announces that today, after four years of successful partnership, it has mutually and amicably terminated its sponsorship agreement with Pixbet.
“The club thanks you for the partnership and wishes Pixbet success.”
On X, Pixbet said: “Throughout this period, we shared moments that went beyond the pitch, strengthening not only the Pixbet brand and Flamengo, but also uniting hearts and amplifying emotions among millions of fans.
“The bonds built over these four years remain alive and strong. And, as with any great story worth respecting, we believe our paths may cross again soon. Thank you, Flamengo.”
What’s going on with Pixbet?
The two companies cutting ties could indicate Pixbet is experiencing financial difficulties. The operator’s entry into Brazil’s regulated online market has been marred by challenges.
In April, Pixbet’s licence was temporarily suspended by the Secretariat of Prizes and Bets (SPA) over failure to present certain technical certificates.
Pixbet’s licence was quickly reinstated thanks to a federal court decision, although the company claimed the “illegal and disproportionate” licence suspension had caused “reputational and economic damages”, especially in relation to its Flamengo sponsorship.
But Pixbet would again find itself in hot water with the regulator in late May, when the SPA suspended its licence once more. This suspension was for failing to complete security assessments for its betting system.
As was the case in April, a federal court granted a preliminary injunction to reinstate Pixbet’s licence, with the quick decision made to ensure Flamengo didn’t breach regulations by playing with an unlicensed betting brand on team shirts the following weekend.
Flamengo seeking new master sponsor
According to a BNL Data report published Wednesday, both Superbet and Betano, as well as another unnamed operator, have reportedly submitted proposals worth over BRL200 million a season to take over the master sponsorship of Flamengo.
Superbet already sponsors São Paulo and Fluminense, while Betano sponsors the Campeonato Brasileiro Série A, the top-flight league in Brazil.
Betano and Superbet have been touted as potential suitors to replace Pixbet as Flamengo’s master sponsor.