Representatives of Brazilian football clubs told the Supreme Federal Court (STF) on Tuesday that ending online sports betting could result in major financial losses. They said clubs had signed contracts under the rules in force at the time and could suffer lasting damage if the law changes.
Flamengo vice-president Flávio de Araújo Willeman said the club had planned its budgets for the coming years around the government’s previous regulations. He estimated that breaking the contracts could mean an annual revenue loss of R$430 million. Willeman called for legal certainty for clubs that relied on legislation approved by Congress and regulated by the federal government, and questioned who would cover their financial obligations if contracts were ended abruptly.
Willeman also argued that banning betting would not resolve concerns raised by groups opposed to the industry. Instead, he called for more effective regulation to address its harms, saying a total prohibition would be the easiest option rather than the appropriate response.
Fluminense representative Matheus Reis e Montenegro said the only club revenue stream directly affected by the end of betting deals would be player sales. He described the proposed measure as affecting clubs at their core and noted that payroll is their largest expense.
Montenegro said clubs would have little scope to adjust. With 14 clubs seeking new sponsorships, he argued, the increased competition would weaken the value of sponsorship opportunities.
Sources: Folha Esporte.