To manage Maracanã, creation of company Fla/Flu is approved by council

The Council Flamengo Deliberative approved on Monday night (5) the creation of the Fla-Flu Company, which will sign the Maracanã concession contract for the next 20 years by the 9th. . The partnership was approved exactly one week after the same Council approved authorization for President Rodolfo Landim to participate in the auction in which Flamengo purchased the land to build its own stadium, which puts the future of Maracanã in question.

< According to Flamengo's commitments in the notice, the Fla-Flu Company will pay R$400 million for the concession (the annual grant is around R$20 million) and will invest another R$393 million in works to renovate the stadium. The company, as well as revenues and expenses, will be divided into 65% for Flamengo and 35% for Fluminense. In other words, Flamengo will be responsible for spending more than half a billion reais to maintain the stadium for the next two decades.

Fluminense had already approved the creation of the company in the General Assembly last Monday. Despite this, Flamengo called the Council for this Monday's vote only last Friday (2), with little time to analyze the documents necessary for the vote.

Contrary to what was recently published by UOL, the contract for the creation of the company does not provide for an exit clause from Flamengo. But it allows clubs to sell part of their shares to third parties, diluting their stake in the company. But Flamengo must always remain in control. Any shareholding change must be approved by the State government.

Flamengo will have control of the management of Maracanã; Fluminense has the right to veto on some issues

As it has the majority of the company, Flamengo will also have the right to nominate two of the three directors, the general and the financial, while Fluminense will be responsible for nominating the commercial director. Each club will have three members on the Board of Directors, but Flamengo will have the president, who will have Minerva's vote in the event of a tiebreaker.

Although a minority, Fluminense has the right to veto some decisions about the stadium: contracting loans in excess of R$15 million, changing fees and rental charges for stadium matches and signing sponsorship contracts, naming rights and commercials competing with club sponsors.

According to president Rodolfo Landim , Flamengo intends to continue holding at least the classics at Maracanã when its stadium is built. In addition, it counts on Fluminense games and rentals for other events, such as Vasco games, national team games and concerts, to keep the stadium profitable throughout the concession.

The concession contract with the government of The State does not provide for automatic termination or upon payment of a fine. If Flamengo chooses to abandon the concession in the future, it will need to reach an agreement with the State government or enter into a legal dispute.