Experts discuss football club sponsorships.

The CEO of Pequi Consultoria de Regulação e Negócios and former advisor to the Prizes and Betting Secretariat (SPA) of the Ministry of Finance, Marcelo Damato, stated that the intense wave of sponsorships increases the costs of clubs, so that, at the end of the partnerships, this increase in expenses culminates in debt. The statement was made this Wednesday (13) during the São Paulo Innovation Week , the largest global technology and innovation festival, held by Estadão in partnership with Base Eventos, at Pacaembu and Faap.

The event runs until Friday (15) and brings together more than 2 Brazilian and foreign speakers from areas such as science, health, education, agribusiness, finance, mobility, geopolitics, sports, sustainability, art, music and philosophy. Damato participated in a debate alongside Bernardo Cavalcanti Freire, partner at Betlaw, and Alvaro Garcia, CMO of Flutter Brazil . The panel discussed the effects of the regulation of bets on sports sponsorships, as reported by Estadão.

The expert explained that the phase of intense financial support for the sector has passed. The regulation of betting companies, still in the process of being refined, has limited the operation of these companies and directly impacted the amounts received by the teams.

“There were sponsorship booms. When that boom falls, the debts explode,” said Damato, pointing out that, in those two clubs, this process began even before the sponsorship ended.

According to the former advisor to SPA, the intense wave of sponsorships raises the operational costs of the clubs. The increase in expenses translates into debt when these partnerships end. The debt process in some teams began even before the sponsorship contracts ended.

The regulation of betting sites has brought about changes in the market. Some betting companies have decided not to enter the legal market after the implementation of the new rules.

Garcia from Flutter Brazil predicts a maturation of the betting market in the context of football. "The decisions will be much more rational – this proposal, this team, this club. We will normalize the relationships in the betting market in a normal process of maturation," he stated.

Experts predict the realization of what is known as the "exodus of betting companies ." Regulation makes Brazil less conducive to the proliferation of companies in this sector.

"In the medium and long term, the established betting companies should remain, but the long tail should disappear. We are working to ensure that the market is seen as an entertainment market," stated Alvaro Garcia.

Bill 3563/2024 is under discussion and addresses the prohibition of betting advertising . The goal is to combat addiction and family debt by restricting advertising in physical and digital media, as well as sponsorships.

Bernardo Freire Cavalcanti argued that raising awareness is better than banning advertising. “We can create this common ground with advertising aimed at the consumer. They need to understand that we are explaining the risks, explaining gambling addiction, seeking bank data to identify debts. It's better to have a joint effort to have a healthier ecosystem,” he stated.

The São Paulo Innovation Week, the largest global festival of technology and innovation, is being held by Estadão in partnership with Base Eventos, at Pacaembu and Faap, between this Wednesday, the 13th, and Friday, the 15th. Among the more than 2 speakers invited for the three days of the event are Brazilian and foreign experts in areas such as science, health, education, agribusiness, finance, mobility, geopolitics, sports, sustainability, art, music and philosophy, among many others.