THE Botafogo sign this Wednesday with the Rio de Janeiro’s city hall the renewal of the concession of the Nilton Santos. The current contract would only expire in 2033 — the original agreement would run until 2031, but Botafogo was given two more years because of the pandemic — will be extended until 2053. The information was published by columnist Lauro Jardim.
Also according to the columnist, until Wednesday, the possibility of Botafogo being able to use the stadium for another 20 years will still be discussed, that is, until 2073.
The new stadium concession provides for some obligations to Botafogo. The club will have, for example, to make structural improvements, re-discuss the financial rebalancing of the stadium’s operation (only in 2020, the first year of the pandemic, Botafogo lost R$ 7 million) and make its functionality broader. It will be up to Botafogo to organize concerts and events at Nilton Santos, in addition to revitalizing the entire outdoor area.
The new contract can help Botafogo on two fronts. One of them is the possibility of getting a sponsor to name the stadium, which is called “naming rights”. Usually this type of sponsorship involves a lot of money and a long-term partnership. THE Corinthians, for example, last year it closed a 20-year partnership with a company and will receive R$ 15 million per year in exchange. With only 12 more years of concession, it would be difficult for Botafogo to find a commercial partner.
Another factor that the grant helps Botafogo is in the process of transforming the club into Anonymous society. After the transition, football assets will pass to the new investor. With that, the concession of Nilton Santos will also be transferred. And the longer contract time can yield bigger offers.
This, by the way, is a subject that has already been discussed at Botafogo, and legally, there is no obstacle in passing on the concession to an investor. Currently this already happens. The holder of the right to use the stadium is a company called Companhia Botafogo, which assigns the assignment to the club. The same would be done with the investor.
The negotiation was made by the CEO of Botafogo, Jorge Braga, who committed to the extension of the concession for wanting the naming rights, with the secretary of Finance of the municipality, Pedro Paulo Carvalho.
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