Debt-ridden Brazilian soccer side Palmeiras has clinched two shirt sponsorship deals to help ease their financial worries.

The Campenonato Brasileiro club has signed agreements with loan company Banco BMG and English language schools programme Skill, which will see corporate branding from both organisations adorning Palmeiras shirts throughout the 2011 season.

Brazilian website Estadão report that the value of the Banco BMG deal, which will see Palmeiras players bearing the company’s logo on their shirt sleeves, is US$4.75 million annually over two years.

However, as Palmeiras owe Banco BMG a reported US$19 million, the club will not receive a payment from the loan company and will instead see this debt reduced accordingly. Therefore, approximately half of the club’s outstanding debt will be wiped out through this sponsorship deal alone.

Financial details of Skill’s sponsorship of the club, which will see their logo placed on the front of Palmeiras’ shirts, have not been released but the deal is widely believed to be of a similar value to that of Banco BMG. Skill’s contract with Palmeiras is initially for one year but the company has the option of a renewal at the end of the season.

Despite the club’s debts, Palmeiras has built up a strong sponsorship portfolio for the 2011 season. Banco BMG and Skill join a line-up of partners including main shirt sponsor Fiat, kit manufacturer Adidas, shorts sponsor Unimed and squad number sponsor TIM.

According to Brazilian website iG, Fiat’s 19-month deal is worth a total US$16.4 million while Adidas pay US$7.5 million before shirt sales. Unimed’s sponsorship is valued at US$3.8 million with TIM’s being worth US$1.3 million.

The cumulative value of these deals has seen Palmeiras become the second highest-earning Brasileirão club in terms of marketing after Corinthians.

Source: sportspromedia.com

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