Flamengo‘s Legal Challenge Blocks $8 Million Payment to Atlรฉtico, Impacts Multiple Brazilian Clubs
Rio deโ Janeiro, Brazilโ – A court โinjunction secured by Flamengo has halted the distribution of approximately R$77 million (roughly $15.4 million โUSD) from broadcaster Globo to โคclubs within theโฃ Libra โBrazilian Championship league, impacting Atlรฉtico โand several other teams. Atlรฉtico was slated toโ receive โR$8 million (approximately $1.6 million USD) asโค part of the second installment of a broadcasting rights agreement for the 2025 Brazilian Championship.
The injunction, issued on Wednesday, October 24th, prevents Globo from releasingโ the funds to โLibra, the organization representing the clubs. A โprevious installment of R$76.6 โmillion (approximately $15.3 million USD) was successfully distributed in July. The overall broadcasting agreement between Libra and Globo, spanning from 2025 to 2029, is valued at R$1.17 billion (approximately $234 million โUSD) plus 40% โขof โnetโ revenue from pay-per-view broadcasts (Premiere) โฃfeaturing home games of Libra teams.
Beyond Atlรฉtico, Bahia, grรชmio, โฃPalmeiras,โ Red โBull Bragantino, โฃSao Paulo, Santos, and Vitรณria are also affected by the blocked funds. Flamengo is seeking a total blockade of R$230 million (approximately โ$46 million USD) โif a resolutionโ isn’t โreached by year-end.
The dispute centers on the method of distribution. โฃCurrently, funds are allocated with 40% divided โขequally amongโข all first division clubs, 30% based on โleague standings, and โthe remaining 30% tied to audience viewership. Flamengo specifically contests the 30%โ allocation based โขon viewership, arguing that Libra’s โstatute lacks sufficient clarity to determine appropriate payment amounts.
Libra has โresponded with a strongly worded statement, accusing Flamengo’s leadership of “disrupting harmony” and “insisting on not respecting assumed commitments and โฃsigned contracts.”
atlรฉtico’sโฃ board hasโ confirmed its full โคsupportโ for Libra’s legal efforts to resolve the situation on behalf of โขall affected clubs, โขbut โthe funds remainโข unavailable as of today.
Note: โฃcurrency conversions are approximate as โofโข November 2, 2023.
