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Texaco Sues Flamengo for Breach of Contract, Demanding R$1.5 Million

Flamengo shirt featuring Texaco sponsorship. Photo: Disclosure
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Texaco has taken Flamengo to court, alleging a breach of exclusivity following the announcement of Lubrax as the club’s new sponsor and seeking millions in damages.

Flamengo is currently facing legal instability behind the scenes following the announcement of its new partnership with Lubrax. Texaco, the club’s former sponsor, has filed a lawsuit questioning the terms of the contract termination and demanding R$1.5 million in damages. According to the brand, the club allegedly violated an exclusivity clause by signing with the new supplier before the official end of the previous agreement.

The dispute, which gained prominence after being revealed by journalist Lauro Jardim of O Globo newspaper, highlights significant contractual disagreements. While the Rio de Janeiro club sought to update its sponsorship portfolio, the company claims to have suffered losses due to the abrupt transition between brands.

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The Battle for Exclusivity

The conflict is rooted in the original contract, which stipulated exclusivity between January 2025 and December 2026. In June, Flamengo notified Texaco of the termination of the agreement, providing a 90-day notice period. However, the signing with Lubrax, which took place in July, is viewed by Texaco as a direct infringement.

The company alleges that Flamengo violated an exclusivity clause by finalizing the new agreement before the previous contract had ended.

Legal Claims and Rulings

In addition to the compensatory amount, Texaco requested the suspension of the last two payments stipulated in the original contract, totaling R$800,000. The company also unsuccessfully attempted the immediate removal of its brand from Flamengo‘s assets.

As of now, the court has denied the urgent preliminary injunctions requested by the company. According to the M360 Team, the case is still far from a definitive resolution, as the merits of the lawsuit, which address the actual breach of contract, have not yet been evaluated by the magistrates.

Flamengo’s Defense

Flamengo maintains a defensive stance, arguing that the interpretation of the termination clauses must consider the entire notice period. According to the club, the announcement of Lubrax does not constitute a breach of contract but rather a strategic move within the established transition timeline.

While the legal battle continues in the courts, Lubrax remains displayed on the squad’s training and warm-up uniforms. The outcome of this dispute will be crucial for Flamengo‘s future commercial strategies, as the club remains focused on the season and its challenges on the field. For more behind-the-scenes news, follow the M360 Team.

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