Why Flamengo earn 8x more than River Plate from Betano: 4 reasons | OneFootball

Response goes beyond Brazil and Argentina markets

Flamengo will receive almost eight times more from Betano than River Plate (ARG). While the Argentines earn R$ 34 million annually from the master sponsor, the Rubro-Negro closed a deal to take R$ 268 million. To understand the case, Coluna do Fla sought the reasons for the glaring difference.

According to the report, four factors are crucial for this disparity in values: brand size, potential return, commercial strength, and competition. Thus, we divide and explain each topic below.

WHY WILL FLAMENGO RECEIVE MUCH MORE THAN RIVER?

1 – Size and exposure of the Flamengo brand: the club has the largest fan base in Brazil (42 million fans) and one of the largest in the world. It also dominates audiences in the country, both on TV and the internet, which guarantees much higher media return for any sponsor.

2 – Advertising and higher potential return: the Brazilian market is much more valuable to betting houses than the Argentine one. It is estimated that Brazil has three times more active online bettors than Argentina, which means more potential customers for Betano.

3 – Commercial strength of the club: Flamengo has become a reference in sponsorship negotiations in South America, achieving values much higher than its rivals. River Plate has a large and passionate fan base, but more localized in Argentina.

4 – Market competition: in Brazil, there was a dispute between several betting houses to sponsor Flamengo (Betano, Superbet, Sportingbet, Esporte da Sorte, 7K Bet, and Betnacional). This competition inflates the contract value. In River, there was no such auction.

Betano will pay R$ 268 million per year to Flamengo because the club offers much higher media return, fan reach, and international exposure than River Plate. In addition, the company will have a presence in the Brazilian market, which is much more profitable for betting houses than the Argentine one.

This article was translated into English by Artificial Intelligence. You can read the original version in 🇧🇷 here.