BNDES rules out credit line to aid clubs hit by betting ban | OneFootball

BNDES has, for now, ruled out creating a credit line to help football clubs hit by Brazil’s ban on online betting. The idea had circulated during discussions around the Government’s provisional measure to halt virtual wagering.

On Thursday 24, clubs from Série A and B considered seeking federal support to soften the loss of betting sponsorships, viewing BNDES as a possible lifeline. That prospect has been dismissed.

No internal or external discussions on financing clubs took place, which BNDES statutes prohibit, so a subsidised line for this sector will not proceed.

On Friday 25, the Federal Government announced the prohibition of sports betting platforms, revealed by Finance Minister Dario Durigan alongside President Luiz Inácio Lula da Silva and other officials.

Currently, 14 of the 20 Série A clubs carry betting brands as main sponsors, including Betano with Flamengo, Sportingbet with Palmeiras and Vasco, Betnacional with Cruzeiro, and Superbet with Fluminense and São Paulo.

Flamengo are among the most exposed, holding the biggest deal in Brazilian football with Betano, worth fixed revenue of R$ 268 million per season. “In the short term it is very hard to say what we can do because this is a very drastic measure. I would be lying if I said we have a Plan B. We do not,” said club president Luiz Eduardo Baptista in an interview with Metrópoles.

He added: “Next year, beyond the sponsorship, the impact on the club’s revenues will be around R$ 400 million.”

Source: Coluna Do Fla

“Artificial intelligence was used to assist in creating this article based on reporting from the original source quoted.”