Simplicity Esports and Gaming Company has signed a 30-month long sponsorship agreement with gaming peripheral manufacturer Redragon for Flamengo Esports.
The sponsorship will include over $170,000 (£127,500) in cash and over $10,000 (£7,500) worth of gaming equipment. In exchange, the Redragon logo will be featured as a jersey sponsor for Flamengo Esports, Simplicity Esports’ Brazilian subsidiary currently competing in League of Legends’ CBLOL.
According to a release, the sponsorship funds will be paid over 30 months beginning in January 2021. The exchange rate used to calculate the sponsorship value in USD is $5.32 Brazilian Reais to $1 USD.
Jed Kaplan, CEO of Simplicity Esports, stated: “Redragon has been a great partner for us since Simplicity Esports entered Brazil earlier this year with the acquisition of Flamengo Esports. We will proudly display their logo on the sleeve of our jersey to be seen by our dedicated fans, social media followers, and content watchers. We still have three available jersey sponsorship activations to sell, including the coveted center chest location that comes with a Master Sponsorship.”
Simplicity Esports added Redragon as a peripheral sponsor in March.
In September, Redragon entered a letter of intent with Simplicity to obtain equity in its Brazilian subsidiary. The deal would see Redragon acquire 7.5 per cent equity stake in Simplicity One Brasil, the company behind Flamengo Esports, for $390,000 (£290,746.95) in cash and over $133,000 (£99,152.16) in additional consideration.
Flamengo Esports is the official esports team of Brazilian esports team Clube de Regatas do Flamengo., with Simplicity Esports taking over management in January. Simplicity also operates esports gaming centres, which have expanded and garnered additional investment throughout 2020.
Esports Insider says: Considering Redragon’s equity in Simplicity One Brasil, it’s no surprise that the company would continue to invest in brand awareness through a jersey and monetary sponsorship. Sponsoring the team earlier this year no doubt served as a trial run for such a long-term business relationship.