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São Paulo court orders tournament income to offset Jockey Club tax debts

A municipal court ruled that revenue from the Latin America Open must be redirected to settle long-standing tax liabilities.

3 min read
Tennis money
Key Points
A São Paulo court ordered up to BR26,500 ($5,064) from a tennis tournament venue rental to be seized to offset unpaid debts
The Jockey Club’s total municipal liabilities are estimated at around BR800m
The ruling comes amid legal and political pressure over the future of the site

A São Paulo court has ordered that income generated from the rental of the Jockey Club of São Paulo’s facilities for an international tennis event be redirected to settle outstanding municipal tax debts.

This adds to the mounting financial and legal pressure facing the 150-year-old institution.

The decision requires organizers of the Latin America Open, an ATP Challenger tournament scheduled for March 2026 and set to host former tennis stars, to deposit up to BR26,500 directly into a judicial account. 

The funds will be used to partially offset unpaid municipal service tax liabilities owed by the club.

The ruling was issued by Judge Rafael Saviano Pirozzi, who mentioned what he described as the club’s “deliberate resistance” to settling tax debts dating back to 2016. 

According to the court, the measure does not jeopardize the tournament’s execution, as the event is organized by third parties and the Jockey Club acts solely as the venue lessor.

For the São Paulo Municipal Attorney’s Office, the decision represents a strategic step in recovering part of a tax backlog that, when combined with unpaid property tax, is estimated at approximately BR800m.

Because the tennis tournament case involves a tax enforcement action rather than a private claim, it follows an independent legal route. 

The seizure also targets rental income rather than assets deemed essential to the club’s operations, allowing municipal authorities to proceed without restriction.

Once a symbol of São Paulo’s elite, the club has struggled in recent years with declining membership, reduced staffing and the migration of horse owners to racing venues in other cities. 

The club has also dealt with a corruption case where funds were allegedly being diverted to private expenses.

Neither the São Paulo City Government nor the Jockey Club commented on the ruling.

Good to know

National newspapers have reported that prize payments to trainers and horse owners have faced repeated delays, with some racing awards remaining unpaid months after events were held

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