Corinthians, Palmeiras and São Paulo have begun coordinating to track a bill under review at São Paulo's City Council that would restrict betting advertising at sports and other events in the city.
The clubs mention the bill’s potential impact on the clubs' sponsorship revenue. Filed by Councillor João Jorge, the bill received a favorable legality opinion from the council's Constitution and Justice Committee (CCJ), advancing it further in the legislative process.
The three clubs together receive an estimated BR350m a year in fixed revenue from main sponsorships displayed on their jerseys, a figure that can rise further through bonus clauses, prize incentives and other forms of commercial exposure, including stadium advertising.
The bill would restrict betting ads at sporting and other events held in São Paulo, regardless of whether they're organized by the public sector or by private or nonprofit entities, covering both professional and amateur activities across public and private venues.
Recently, even amid the uncertainty, Betano announced the renewal of its sponsorship of the Campeonato Paulista Feminino for a second consecutive season.
Cited formats include signage, banners and panels installed at sports venues.
"If clubs in the city of São Paulo lose betting brand revenue, one of their main sources of income, while rivals in other states keep it, the disparity will show up on the pitch," said São Paulo Football Federation President Reinaldo Carneiro Bastos.
"A rule restricted to us will weaken clubs in the face of national and international competitors and directly compromise their ability to compete for titles."
Proposed penalties include fines of BR50,000 and the possibility of barring organizers from holding events for up to two years
