Flamengo, one of Brazil's leading football clubs, has decided to end its sponsorship agreement with Pixbet ahead of schedule, leading to the closure of their joint venture, Flabet. The contract, originally set to run until December with a potential extension through 2027, had seen Pixbet’s branding on the team’s jerseys since 2022. This sponsorship, valued at around BRL470 million ($87.1 million), was regarded as the largest club sponsorship in Brazilian football history.
On Wednesday, Flamengo announced the termination of the agreement, citing reports of delayed payments from Pixbet. Following Pixbet's acquisition of the master sponsorship in January 2022, Flamengo announced plans to create the Flabet brand under Pixbet's management. However, this brand will now cease operations as Flamengo seeks new partnerships with other betting companies to fill the master sponsorship role.
In a statement on its website, Flamengo expressed gratitude for the four-year partnership, stating, “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.”
Pixbet commented on X, expressing appreciation for the time spent together, saying, “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.”
The split suggests that Pixbet may be facing financial challenges. The operator's entry into Brazil's regulated online betting market has been fraught with difficulties, such as a temporary suspension of its license in April by the Secretariat of Prizes and Bets (SPA) for lacking certain technical certificates. Although the license was restored by a federal court, Pixbet indicated that this suspension caused both reputational and financial harm, notably affecting its relationship with Flamengo.
In late May, Pixbet encountered regulatory issues once again, with the SPA suspending its license for not completing necessary security assessments. A federal court subsequently intervened to reinstate the license swiftly to avoid complications for Flamengo regarding the use of an unlicensed betting brand on its jerseys.
As Flamengo moves forward, a report by BNL Data revealed that Superbet, Betano, and another unnamed entity have submitted proposals exceeding BRL200 million per season to assume the master sponsorship. Superbet is already associated with São Paulo and Fluminense, while Betano has sponsorship ties to Brazil’s top professional league, the Campeonato Brasileiro Série A.
