Brazil’s Série A and B clubs seek BNDES-backed relief as a possible bets ban looms

Brazilian football clubs in the Série A and B are negotiating financial support while the federal government studies a Provisional Measure that could restrict bets activity in Brazil, at least in part. For high-risk operators, the interesting bit is obvious: clubs are openly arguing that a ban would hit one of their main advertising channels and worsen their finances.

1. The talks involve the Ministry of Sport, the CBF, and club executives, with the expectation that the issue will only move after the elections, since the second round is on 25 October. The discussions have been underway since last month.
2. The main idea on the table is a credit line from BNDES (Banco Nacional do Desenvolvimento Econômico). Under that model, clubs would get loans at rates below those charged by commercial banks, but the money would have to be used exclusively to pay debts.
3. The proposal is not a REFIS-style tax amnesty. In this case, the relief would not be limited to tax liabilities, and another option discussed was releasing funds for infrastructure investment, which would help clubs with lower debt loads.
4. Corinthians and Internacional are leading the conversations. Both clubs are in severe economic distress and are under FIFA transfer bans. Their presidents, Osmar Stabile and Alessandro Barcellos, sought support from Pedro Daniel, now CEO of Atlético-MG and until the end of last year an executive director at EY. EY produced a study that helped frame the talks with the Ministry of Sport and the CBF.
5. The CBF has taken part in the negotiations, and the new Financial Fair Play regulation, which came into force this year, is being used to justify access to credit. The clubs’ argument is that, unlike previous public rescues, they are now operating under stricter governance rules and greater oversight.

What makes this relevant for PSPs and acquiring teams is the direct link between club cash flow and sponsor dependence. The clubs argue that a bets prohibition would make their situation worse, and the sector is currently one of the main advertising partners for football clubs in Brazil. It is estimated that bets pay about R$ 1 billion per year to display their brands on Série A shirts.