"Serious breach": The University of Chile reacts to Azul Azul's millionaire contract with a betting company

At the University of Chile, they reacted immediately to the new main sponsor who secured the outgoing board of Azul Azul for the next two seasons. Just hours before El Deportivo published the millionaire contract that sealed the concessionaire with 1XBet, worth US$ 4.4 million per year, the institution met to evaluate the next steps, as there is discomfort regarding this agreement between the University and a betting house. For this reason, Pro-Rector Dorotea López, who has been in charge of leading conversations with the sports club by mandate of the Rector, sent a letter to Azul Azul during Friday morning to make clear her disagreement with the latest commercial decision executed by the board, which will be revoked this Friday at 4:00 PM. The academic protested the decision made by President Cecilia Pérez, which was taken after a vote to approve the betting house as the main sponsor. On the November 5th board, nine members of the board voted in favor of the business (Cecilia Pérez, José Ramón Correa, Cristian Aubert, José Miguel Insulza, Francisco Aylwin, Roberto Nahum, Aldo Marín, Pablo Silva, and Luis Miguel Berr), while the two representatives of the University of Chile abstained (Héctor Humeres and Andrés Weintraub). The position of the institution is clear. "The promotion of games of chance under the name and emblems of the university goes against the values they promote and breaks the agreement signed by both parties on August 18, 2008," they state. "In view of the foregoing, and considering the special nature of the authorization granted to Azul Azul S.A. for the use of the name and symbols of the University of Chile, I request that any decision on this matter be informed to the university beforehand and that all relevant background information be sent for its analysis, because, if such facts are effective, the concessionaire would incur another serious breach of the obligations acquired under the agreement celebrated with this university," the Pro-Rector claimed to Cecilia Pérez. Pro-Rector Dorotea López will attend the Azul Azul shareholders' meeting. A Permanent Complaint The discomfort of the University of Chile is not new. Former Rector Ennio Vivaldi expressed his reservations to then-President Michael Clark, currently in preventive custody for the Sartor case, regarding the agreement reached with Betano in 2022. "Regarding this latest commercial agreement, we find it essential to note our disagreement concerning the promotion of betting houses under the name and emblems of our institution, as the promotion of games of chance and gambling sharply conflicts with the sporting values and principles that inspire the activities of the University of Chile," read the letter he sent to the Azul Sports Center. A year later, when the Internal Revenue Service considered these companies "illicit," Vivaldi's successor, Rosa Devés, also wrote to Clark and pointed out that the university "believes that the link Azul Azul S.A. maintains with the online games and betting operator 'Betano,' as the main sponsor and main partner of the professional football team, using the name, symbols, and registered trademarks of the University of Chile, not only promotes gambling and games of chance, but also an activity that has consistently been considered illegal and of illicit object by the administrative and judicial authorities of our country, which is openly contrary to the norms and values of this Higher Education Institution." The Story of the Million-Dollar Contract The link between the U and Jugabet ends this December, and the concessionaire already had advanced conversations with Betano to be its new main sponsor. However, the club's troubles and a series of last-minute commercial situations caused the betting house to drop out of the operation. "Is this a critical time when thinking about sponsors and sponsors? No time is good for making this type of decision. Decisions must be made at the right time, and uncertainty is worse than not making decisions," said liquidator Eduardo Godoy to La Tercera, who is in charge of selling the 63.07% of shares that Sartor still holds in the administrator. But this did not stop the outgoing administration. They immediately went to find a new official sponsor. In that context, club leader Cecilia Pérez, along with General Manager Ignacio Asenjo, headed the negotiations with 1xBet. After several meetings, they achieved an agreement that secures the club income of US$ 8.8 million over two years. This figure represents an increase of US$ 1.4 million per season compared to what was contemplated in the previously negotiated agreement with Betano and was signed for two seasons. "These are good contracts, and I believe that for any board that arrives, it is a problem less to have the finances for next year resolved. As the club president said, you govern until the last day, and I believe Cecilia Pérez did that," defended the decision the second majority shareholder of Azul Azul, José Ramón Correa. Following this, the lawyer downplayed the controversy. "Regardless of opinions, which are all very legitimate, the duty of the directors is to look after the assets of the company and have the necessary resources to face 2027. These are contracts that are not long-term and there is always the possibility of evaluating them over time," he concluded.