There are, in addition to fixed values, a series of variables. The company will pay R$10 (US$1.9) for each subscription on its platform that is motivated by the sponsorship of São Paulo - there is a specific system to measure this. There are also awards for sports goals achieved in the competition: in 2021, the Libertadores title would earn R$700,000 (US$131,000). Starting next year, winning the most important competition in South America will yield a bonus of R$1.7 million (US$320,000), while this year's Copa do Brasil will yield R$ 150,000 (US$28,200). As of next year, the value will rise to R$550 thousand (US$103,000).
Sportsbet.io has, in 2023, a possibility to terminate the contract unilaterally, without payment of termination. It is one of two possibilities without payment of part of the remaining amounts in the contract: in case of relegation from São Paulo to Series B of the Brasileiro championship, or Series A2 of state’s Paulista.
The sponsorship values encompass much more than the branding on the shirt of the professional football team: São Paulo negotiated with Sportsbet.io an extensive list of properties.
The agreement includes the shirts of the men's and women's football teams and the basketball team, as well as spaces for the brands on the buses that transport the delegations. Inserts were negotiated on the Morumbi screens during the games, the assignment of three boxes, at least 100 tickets for São Paulo's home games, 250 shirts (100 of them autographed by the players), 15 visits to the Barra Funda Training Center, an annual event in Morumbi, three in Cotia.
São Paulo will also transfer the collective image of athletes to the company and is committed to assisting in marketing projects involving athletes and idols in the club's history.
The sponsorship announcement caused controversy as São Paulo claimed it was the biggest in the club's history, but did not disclose the values. Agreements with LG and BMG, disclosed in past administrations, would have proportionally higher values. UOL Sport did not, however, have access to these contracts beyond the values disclosed at the time.
"Yes, São Paulo considers this the biggest contract in its history. The comparison must take into account all factors and variables. The contract length, cash value, exchanges, bonuses, awards, products. If comparing all these points, we can consider it the greatest in history. But it is important to emphasize that this comparison should be made with actual values that were achieved in the contracts, and not with those that were disclosed in the market or estimated," says marketing director of Eduardo Toni.
With part of the agreement's values linked to the sports betting market in the country, the Morumbi club is betting on helping to boost the segment. "São Paulo has multiple possibilities for monetization. And we are working to seek new forms of revenue in addition to the traditional ones. The betting sector is one of the main players in the advertising market right now, just follow the presence of these companies in the main media. Even for that reason, it is important for São Paulo to be part of this growth in the sector," explains Toni.
The contract with Sportsbet.io was approved by the Board of Directors in a virtual vote held last Tuesday (17). Only four councilors voted for disapproval, with one abstention. Initially, the São Paulo board had sent the contract without the amounts for the Board to approve. At the beginning of Monday's session, however, the president of the Council, Olten Ayres de Abreu Junior, decided to show the values of the agreement to those present at the session.
Source: Brunno Carvalho e Pedro Lopes- UOL
