São Paulo Football Clubs Warn of Economic Impact from Proposed Betting Advertising Ban

Two bills submitted to the municipal council of São Paulo have been opposed by the São Paulo Football Federation (FPF) and some of the city’s top football clubs, as they limit betting advertising in physical and digital spaces in the city.

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On July 24, the clubs, among others, including São Paulo FC, Palmeiras, Corinthians, Portuguesa, Juventus and Nacional, sent a letter to the president of the city, Ricardo Nunes, reporting their concern over Bills 553/2025 and 560/2025. The proposed restrictions would make the competition unfair, because clubs would not have to have the same restrictions if they were located outside of São Paulo, the organizations said.

According to the FPF estimates, termination of contracts and renegotiation of the costs of the proposed legislation may cause losses to the national sporting industry of more than BRL 1 billion.

Restrictions Could Affect National and International Competitions

The proposed ban will bring difficulties for major football events that will take place in São Paulo, according to the letter. Players who attend matches played in the Brazilian Championship, Copa do Brasil or continental competitions may have to change their kits if their kits contain betting sponsors.

Football organisations say that such a mandate would undermine commercial dealings already in place that are still legal in the rest of Brazil, leading to a mismatch between municipal and federal laws.

The federation also cautioned that the law could decrease the appeal of the city to host large-scale international events, such as those run by CONMEBOL and FIFA, as well as those like the 2027 FIFA Women’s World Cup, the NFL games and Formula 1 races.

Clubs Highlight Potential Financial Consequences

Sponsor funding from betting firms is essential to the long-term sustainability and operations of the clubs, the organisations claim. The loss of these partnerships may have a direct impact on player salaries, infrastructure projects and financial support for women’s football, the letter reads.

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However, the clubs argue that the proposed restrictions go further than advertising policy and have wider economic consequences for the sports industry more generally, if existing sponsorship deals are broken ahead of their contractual end.

The FPF also stressed that clubs outside of São Paulo would be competing under different commercial terms, which could put them at a disadvantage from a financial perspective relative to local clubs.

Federation Calls for Technical Dialogue and Transitional Rules

The FPF has officially asked the municipal government of São Paulo to act and initiate a technical discussion with the football sector before taking a final decision on the bills.

Instead, the federation suggested establishing an exemption for betting companies to be seen in professional stadiums and training centres. The organizations say that these regulated spaces are already subject to the federal regulations that apply to betting advertising.

The letter also requests that transitional changes be made so that existing sponsorship agreements that were negotiated prior to any new legislation will be respected. Football institutions say that the current contracts would give more legal stability, economy and safeguard investments already put into the sport in Brazil while any changes of law are put in place.

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Source: iGaming Brasil