Brazilian football clubs will lose betting sponsorships after Lula’s last ban on betting comes into effect on 6 October.
The ban includes bans on sports betting ads and sponsorships. Football clubs can lose more than €256.4m in annual revenue from shirt sponsorships, pitchside advertising and broadcast-related packages.
Brazilian football club Vitória has a shirt sponsorship deal with 7K Bet until 2027. The Salvador club expects to lose $8.8m for 2027, as well as income from advertising boards.
Ana Gaming, the holding company behind 7K Bet, said, that changes 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.
Cesar Grafietti, an economist and partner at Convocados which is Brazilian consultancy focused on football management and finance, said:
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.
President Luiz Inácio Lula da Silva defended the ban, saying:
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.