Brazilian esports organisation E-Flix eSports announced that its licensing contract with Cruzeiro Esporte Clube, one of the main football clubs in Brazil, has been terminated.
Cruzeiro eSports was currently competing in the Brazilian League Of Legends Championship (CBLOL) and Free Fire League (LBFF). The teams will remain in the competitions without Cruzeiro’s branding.
Following E-Flix’s announcement, Cruzeiro released a statement regarding the termination, claiming that the club was surprised by the announcement.
A Cruzeiro spokesperson said: “The club points out that, before the decision, E-Flix did not express any type of dissatisfaction, and regrets that the company – which gained national prominence with the gamer community and participation in championships after allying itself with the gigantic brand Cruzeiro – took such an attitude at the most successful moment of the project, abandoning a partnership always guided by objective good faith.”
Despite being well-regarded in Brazil, Cruzeiro endured a second year in Brazilian football’s Second Division and is suffering from a deep financial crisis, according to reports. The club has stated that it is taking legal measures regarding the contract’s termination and that it will continue to be involved esports.
The franchise spots for the LBFF and CBLOL are owned by E-Flix, with Cruzeiro only assigned image rights for both teams. Riot Games Brazil released a statement about the organisation’s CBLOL franchise spot, with the publisher acknowledging that E-Flix has been transparent with Riot about the termination of the contract.
Carlos ‘Cacophonie’ Antunes, Head Of Esports at Riot Games Brazil, commented: “During the process of reviewing its partnership with Cruzeiro Esporte Clube, E-Flix approached Riot Games to share all information and decisions proactively, always with great professionalism and transparency, and presenting a review of its business plans and planning for the future from the Second Stage of CBLOL 2021.
“We believe in E-Flix’s plans, in its long-term vision and ability to implement these plans, and for this reason we confirm our confidence in E-Flix as a partner of CBLOL and Riot Games. Beginning with the Second Stage of CBLOL 2021, E-Flix will compete under another name, and we are sure that it will continue to write its history on CBLOL and Esports.”
Esports Insider says: Cruzeiro’s crisis in football is well known to fans in Brazil. The two esports teams were a way for the club to reconnect with the younger fans that were unhappy with the current state of the Cruzerio. It will be worth keeping an eye on E-Flix and Cruzeiro’s situation, with the former looking to distance itself from the club and restructure its esports operations in the CBLOL and LBFF.