Flamengo‘s Legal Challenge Blocks $8 Million Payment to Atlético, Impacts Multiple Brazilian Clubs
Rio de Janeiro, Brazil – A court injunction secured by Flamengo has halted the distribution of approximately R$77 million (roughly $15.4 million USD) from broadcaster Globo to clubs within the Libra Brazilian Championship league, impacting Atlético and several other teams. Atlético was slated to receive R$8 million (approximately $1.6 million USD) as 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 releasing the funds to Libra, the organization representing the clubs. A previous installment of R$76.6 million (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 USD) plus 40% of net revenue from pay-per-view broadcasts (Premiere) featuring home games of Libra teams.
Beyond Atlético, Bahia, grêmio, Palmeiras, Red Bull Bragantino, Sao Paulo, Santos, and Vitória are also affected by the blocked funds. Flamengo is seeking a total blockade of R$230 million (approximately $46 million USD) if a resolution isn’t reached by year-end.
The dispute centers on the method of distribution. Currently, funds are allocated with 40% divided equally among all first division clubs, 30% based on league standings, and the remaining 30% tied to audience viewership. Flamengo specifically contests the 30% allocation based on viewership, arguing that Libra’s statute lacks sufficient clarity to determine appropriate payment amounts.
Libra has responded with a strongly worded statement, accusing Flamengo’s leadership of “disrupting harmony” and “insisting on not respecting assumed commitments and signed contracts.”
atlético’s board has confirmed its full support for Libra’s legal efforts to resolve the situation on behalf of all affected clubs, but the funds remain unavailable as of today.
Note: currency conversions are approximate as of November 2, 2023.