Betting MP leaves Grêmio facing a multimillion impasse | OneFootball

President Luiz Inácio Lula da Silva’s signing of the provisional measure (MP) on betting has left Grêmio facing a financial impasse. Two days earlier, the club had announced betting company Pitaco as its main sponsor and hoped to keep the deal in place during the transition.

RTI Esporte Agency has learned that Grêmio was counting on some protection for contracts already signed. Since the deal is valid until 2029, the expectation was to fulfill at least part of the agreement before a full ban on betting advertising took effect.

The MP changed the scenario, and Grêmio president Odorico Roman is now assessing the effects of the new rules on the contract. Behind the scenes, the club is avoiding making any early decisions. One executive told the report that it would be necessary to “wait for the MP to assess” the next steps.

Deal provides for R$ 40 million per year

The timing has raised concerns: Grêmio announced the new main sponsor for around R$ 40 million per year, in addition to bonuses. The club also received a signing amount. It now needs to understand how the MP will affect the sums already received and the contract itself.

Contract until 2029 under scrutiny

The club had expected to have an adjustment period to preserve part of the agreement. With the MP, however, that possibility now depends on the regulations and on how the new rules for existing contracts are interpreted.

Any early termination would have a direct impact on one of Grêmio’s main commercial assets. The club from Rio Grande do Sul would have to find another source of revenue to make up for the amount that had been projected through December 2029.

Grêmio awaits regulation

There is still no decision on a possible termination. Grêmio is waiting to learn how the Bets MP will be applied to contracts already signed and what the adjustment period will be. Only then should the club from Rio Grande do Sul decide the next steps in its relationship with Pitaco.

This article was translated into English by Artificial Intelligence. You can read the original version in 🇧🇷 here.