CBF to receive millionaire compensation from Marfrig

The Superior Court of Justice (STJ) decided that Marfrig must pay a multi-million fine to the Brazilian Football Confederation (CBF) for terminating the sponsorship contract. The legal battle, which dragged on since 2013, had a favorable judgment to the entity, by 3 votes to 1, last Tuesday (9).

​The judgment should be published in the coming weeks, and the indemnity amount will be calculated with monetary restatement.

There is still an appeal entitled “motion for clarification”, an instrument that does not have the power to change the essence of the decision, but which serves to clarify the points that were not clear.

Wanted by sheet, Marfrig only replied that it will appeal the decision.

The lawyer Rodrigo Neiva Pinheiro, a partner at the Perdiz de Jesus law firm, hired by CBF, celebrated. “It made the mandatory force of the contracts prevail in observance of objective good faith and the autonomy of the will to contract”, says Pinheiro.

CBF claimed to receive the amount of BRL 88.5 million when it filed a lawsuit in the Court of Justice of Rio de Janeiro, in 2013.

Forecasting the conclusion of the case for 2021, the company forecast an expense of R$ 58.9 million with the action, in its form for this year’s reference.

The entity that governs football in the country and the slaughterhouse, responsible for the Seara brand, signed a contract on March 8, 2010, valid until the end of December 2026. There was an amendment to the contract, signed on September 23 of the year in which the agreement was signed, in which Marfrig was accredited to sponsor, in addition to the main men’s team, the youth category and the women’s team.

The company would pay US$ 160 million (R$ 274 million, the exchange rate at that time) to CBF, of which US$ 136 million (R$ 233 million) would be divided into quarterly installments, specifically in January, April, July and October, 2011 to 2026.

In addition to the money, the company was to transfer to CBF two aircraft, valued at US$ 24 million together, which would meet the needs related to the 2014 World Cup project in Brazil.

However, CBF claims that in March 2012 the company failed to honor its obligations and, therefore, the contract was terminated in May 2013. According to the entity, the company made payments of US$ 15 million (about R$ $25 million at the time) while the partnership existed. Even without paying, the slaughterhouse exploited the image of the Brazilian team commercially in the London 2012 Olympics.

CBF then filed a lawsuit in which it claimed to receive the outstanding installments, in addition to the two aircraft and a fine of 20% of the total contract value (US$ 32 million).

The Court of Justice of Rio de Janeiro (TJ-RJ), in 2013, understood that Marfrig had fulfilled its obligation for two years, with total payments of US$15 million, and set a fine of US$2 million (R$3.4 million, as of September 23, 2010, the date on which the contract received an amendment).

The judge also did not include the two aircraft in the calculation of the indemnity.

In its defense, Marfrig said that CBF was already negotiating a new contract with its competitor, BRF (Brasil Foods), while still offering ways to avoid the end of its partnership.

Company and confederation appealed to the STJ. Finally, the Court understood that the slaughterhouse must indemnify CBF in 20% of the installments due after the termination – from May 2013 to December 2026.