Olympikus, who currently sponsor Flamengo, are concerned about their sales and want R$ 35 million (£11m) compensation for early termination of their contract, which expires at the end of 2014.
The brand also wants to recoup a portion of their R$ 10.4 million (£3m) investment in building the Museum of Flamengo, which has been suspended due to the dispute.
Within the club there are divisions as to whether the Flamengo board should accept Adidas’ offer or stay with current suppliers Olympikus, mainly due to the contract length.
Leonardo Ribeiro, President of the board, said: “What we want is a readjustment of the values after a five-year contract. I said I could not vote if it was a contract of adhesion.”
Flamengo did have 100 days to make a decision but negotiations have taken longer due to the club’s current deal with Olympikus, who pay part of Vagner Love’s salary.
Should the Rubro-Negro reject the offer, Adidas will be taking the proposal to other European clubs, which includes a number of bonuses for title wins.
