Brazil Football Clubs Face Betting Sponsorship Losses

Brazil’s football clubs are set to lose significant betting-related sponsorship income after President Luiz Inácio Lula da Silva’s latest betting ban takes effect on 6 October.

The restrictions cover advertising and sponsorships linked to sports betting, putting revenue from shirt deals, pitchside advertising and broadcast-related commercial packages at risk. Across Brazilian football, clubs could lose more than €256.4m in annual revenue from these sources.

One club directly affected is Vitória, which currently has a shirt sponsorship agreement with 7K Bet running through 2027. The Salvador-based club expects to lose $8.8m in 2027, in addition to revenue generated through advertising boards.

Ana Gaming, the holding company behind 7K Bet, acknowledged the changes created by the new restrictions. The company said the sector’s operating conditions had changed, affecting its broader network of commercial relationships.

“Changes to the sector’s operating conditions, with impacts on its entire chain of commercial relationship and that the adjustments arising from this scenario are being carried out with responsibility, caution and respect for partners,” Ana Gaming said.

The financial impact extends beyond shirt sponsorships, according to Cesar Grafietti, an economist and partner at Convocados, a Brazilian consultancy focused on football management and finance.

Grafietti identified three effects on the industry, with sponsorship representing the most immediate consequence.

“There are three impacts on the industry. The first and most obvious is on sponsorship. We’re talking about an immediate reduction in contracts that represented more than €170.9m a year in revenue. Most of the clients for these boards were betting companies, and we’re talking about at least another €85.5m in revenue that disappears.”

Lula has defended the restrictions, pointing to Brazil’s historic football successes before betting sponsorships became part of the commercial landscape.

“It’s important to remember that São Paulo were world champions three times and had no bet. Santos were world champions twice and had no bet. Grêmio were world champions and had no bet. Flamengo were world champions and had no bet. Internacional were world champions and had no bet. And my Corinthians were world champions twice and had no bet.”