Flamengo venue project ballooning price tag

Article posted by Coliseum, March 13^th, 2025

Image: Flamengo on X

The Brazilian professional football team CR Flamengo (Brazil) has revised the estimated cost of its new stadium project to R$3 billion ($500 million) up from an initial R$1.9 billion ($317 million).

However, the technical and financial studies which are presently underway will help to peg the exact venue project price tag.

‘The Rio Times’ stated that a preliminary study of the Gasômetro site (Rio de Janeiro, Brazil) carried out by the Arena Events + Venues led to the above ballooning price tag. The Gasômetro site is the stadium’s future location.

The CR Flamengo, more commonly referred to as simply Flamengo, is a Brazilian multisports club based in Rio de Janeiro in the neighborhood of Gávea (Brazil). It was founded and named after the Flamengo neighborhood and is best known for their professional football team. They are one of two clubs to have never been relegated from the top division (Campeonato Brasileiro Série A) along with the São Paulo FC and are the most popular football club in Brazil with more than 46.9 million fans equivalent to 21.9 percent of the population that supports a team in Brazil.

The 73,139-capacity Maracanã Stadium, officially known as the Journalist Mário Filho Stadium, is an association football stadium in Rio de Janeiro, Brazil. It serves as the home ground of the CR Flamengo.

The Gasômetro site in Rio de Janeiro (Brazil) is a former coal-fired power plant built in the late 1920s. The site is located on the banks of the Guaíba River and features a 350-foot brick smokestack, theaters, meeting rooms, and exhibit spaces.

‘The Rio Times’ further stated that the Flamengo President Luiz Eduardo Baptista (Bap) announced the above updated figure recently and said that they could not gauge the overall behavior of the venue project – that is the complexity of the project – and hence the rise in the price tag.

The Gasômetro site, purchased in 2024 for R$138.2 million ($23 million), is part of Rio de Janeiro’s urban renewal initiative. It is located in the Porto Maravilha area. Once an industrial zone it is set to house a sleek stadium with a capacity to hold 77,923 spectators which will make it the second largest arena in Brazil.

Porto Maravilha is a large-scale urban regeneration project to restore the old port district of Rio de Janeiro (Brazil). The district is at the heart of the Rio de Janeiro Metropolitan Region.

The design includes 27 elevators, 16 ramps and seating as close as 6.81 meters from the pitch. The 60 meters tall structure will surpass even the iconic Maracanã Stadium.

The revised budget accounts for land acquisition, soil decontamination, construction, parking facilities, landscaping, and commitments to urban integration.

Flamengo has engaged Arena Events + Venues for carrying out the technical studies and the Fundação Getúlio Vargas (FGV) for the economic analyses part. Both the study reports are expected within 60 days.

São Paulo (Brazil)-based the Arena Events + Venues is a global technical consultancy firm focused on the delivery of major sporting events and planning/design of entertainment venues.

Established in 1944 to promote Brazil’s social and economic development, Rio de Janeiro-based Fundação Getúlio Vargas (FGV) has consolidated itself as a one of the top 10 think tanks in the world as well as a top higher education institution. The Fundação Getúlio Vargas has a tradition of excellence in research, innovation and consulting in Administration, Economics, Law, Social Sciences, and Applied Mathematics.

To fund the project Flamengo anticipates R$1.5 billion ($250 million) from naming rights over 20 years and additional revenue from premium seating and luxury suite rentals. The club also plans to leverage the construction potential certificates (CEPACs) potentially raising R$500 million ($83 million).

The CEPACs were created basically to separate the economic compensation from the realization of the developer’s project and to provide the public administration with funds to pay for the infrastructure independent of the moment the project began.

Scheduled for completion by November 15^th, 2029 – Flamengo’s 134th anniversary (the club was found on November 15^th, 1895) – the stadium aims to enhance the matchday experiences while revitalizing its surrounding area. However, managing the costs and ensuring community benefits remain critical challenges for this ambitious venture.

Pricey Project

‘CPG’ stated that the Flamengo’s new stadium will be the most expensive construction in Brazilian football with an investment of R$3 billion and a focus on innovation and comfort for the fans.

The club’s President Baptista informed that the initial price tag set does not hold good as the club awaits the technical and financial studies’ reports which will ascertain the exact figure.

The Gasômetro land was acquired by Flamengo last year. A standalone venue has been a long-cherished plan of the club.

‘CPG’ further stated that even though Flamengo’s planned new arena will not sit on the top-of-the-heap as far as capacities of the venues are concerned in the world but once the venue comes to fruition it will be a reference point in the continent (South America).

The futuristic arena will offer first-string facilities and will be able to host major sporting showcases.

President Bap reiterated that the club will release the final cost of Flamengo’s venue project only after the above mentioned technical and financial studies’ reports are out. The fans are eagerly awaiting the details of the stadium project that promises to offer the crème de la crème facilities and will also be a watershed moment for the top-flight club of Brazil.

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