flamengo obtains court order to block payments to libra clubs2c which criticizes the clubs action

Flamengo obtains court order to block payments to Libra clubs, which criticizes the club’s action

The injunction granted by the Rio de Janeiro Court of Justice blocks the transfer of R$ 77 million – the amount related to a percentage of the pay-per-view earnings, according to the contract signed between Libra and Globo. Flamengo claims to have suffered losses with the contract, signed in 2024 and valid until 2029. The commitment was made by Rodolfo Landim, the club’s former president. His successor, Luiz Eduardo Baptista, opposed Landim and seeks to revise the money distribution within the league. Baptista criticized the terms of the contract during the club’s electoral process last year. The audience performance on pay-per-view is one of the criteria that determine the amount to be received by each club. Flamengo questions the rule that divides the money related to the audience measurement. Meanwhile, Libra states that the action taken by the current Flamengo board disrupts the group’s harmony. The entity said it was surprised by the club’s attitude as the discussion had already been raised in previous meetings over the last few months. In September, the other clubs rejected Flamengo’s proposal and approved a new criterion to share the value related to game audiences. Flamengo had attempted to obtain the injunction in the first instance but was unsuccessful. The request was granted in the second instance in the Rio Court of Justice. The case is being handled under judicial secrecy. The money related to the audience would be distributed in four installments. ge contacted Flamengo, but the club did not comment. If they do, this report will be updated. ‘Libra repudiates the unilateral and sudden decision of Flamengo’s current management, which filed a lawsuit against the group of clubs it is part of, blocking financial payments established in a contract and jeopardizing the group’s harmony by questioning settled agreements. The club claims losses within a billion-dollar contract that do not align with its financial situation. The extreme measure confirms a stance that prioritizes short-term individual interests, when in reality the true victims are the teams that rely on this money for their cash flow, bill payments, and salaries. Even though the subject has been thoroughly debated in the past, it resurfaced and was subjected to the democratic will of all members, who voted to maintain the current format. The institution will spare no efforts to defend in court the legitimacy of collective decisions and the fulfillment of contracts.

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