Corinthians face at least R$480m loss after Brazil betting ban | OneFootball

The ban on betting companies in Brazil is expected to have a significant impact on Corinthians’ future revenue. According to information from Meu Timão, the club estimates it will lose at least R$ 480 million from Esportes da Sorte between 2027 and 2029, the remaining term of its master sponsorship deal. The projection could increase due to bonuses and other variable revenue предусмотр?

The change comes after the publication this Friday (25) of Provisional Measure 1.394/2026, which bans the operation, offering, intermediation, and advertising of fixed-odds betting nationwide, including sports betting and online gaming. The rule also affects advertising and sponsorship contracts: new deals are prohibited, and already contracted materials have a deadline for removal.

Photo: Disclosure/Corinthians

For Corinthians, the most direct consequence involves the most visible space on the jersey. Esportes da Sorte holds the club’s master sponsorship and had its deal renewed in February of this year through December 2029.

Renewed contract could exceed R$ 200 million per year

The new agreement between Corinthians and Esportes da Sorte provides for an investment of R$ 150 million per season, in addition to performance mechanisms capable of raising the amount to around R$ 200 million annually. The previous partnership, signed in 2024, provided for R$ 309 million over three years, an average of R$ 103 million per season.

It is precisely the length of the new deal that puts Corinthians’ projection at nearly half a billion reais. According to Meu Timão, the calculation of at least R$ 480 million considers the expected revenue for 2027, 2028, and 2029.

The potential loss, however, will not necessarily be limited to that amount. The contract includes bonuses linked to meeting certain targets, including sporting results. Therefore, titles and other goals achieved by Corinthians could have increased the sponsor’s payments during the period.

The provisional measure also sets a timeline for the suspension of the companies’ activities. Betting websites and apps must stop operating in the country starting October 6. In advertising, new contracts are already prohibited, while previously contracted materials may remain in circulation until October 5.

Other contracts are also causing concern

The loss of the master sponsorship is not the only financial consequence being monitored by Corinthians. Internally, there is concern about possible indirect effects on other football-related revenue streams.

One of them involves the contract signed with Brax for the exploitation of advertising boards at Neo Química Arena during Campeonato Brasileiro matches. The agreement was expanded in 2024 and provides for R$ 330 million to Corinthians through 2029.

In this case, however, the club does not consider the amounts a confirmed loss. According to Meu Timão’s reporting, the concern is related to the possibility of reduced revenue for the company responsible for selling the advertising properties, since betting companies are part of that market.

Brax’s business model is based precisely on selling the spaces acquired from clubs to brands interested in advertising during matches. Betting companies were already among the businesses sought to occupy those properties.

Thus, any possible impact on Corinthians’ contract is still hypothetical and should not, at this point, be added to the projected R$ 480 million tied to the end of the master partnership.

Broadcasting rights enter the radar

Another point being watched by the club involves revenue from broadcasting rights. According to Meu Timão, the contract signed by Corinthians with the Futebol Forte União (FFU) bloc exceeds R$ 1 billion through 2029, with annual revenue in the range of R$ 210 million and the possibility of growth depending on sporting performance.

Again, the concern does not mean Corinthians will lose those amounts. The question lies in the possible effects of removing betting companies from Brazilian football’s advertising market, since companies in the sector also buy commercial space related to competition broadcasts.

Therefore, unlike the contract directly maintained with Esportes da Sorte, any impacts on television and pitch-side advertising revenue still do not have defined amounts.

Corinthians has already advanced sponsor revenue

The change comes at a time of pressure on the club’s cash flow. According to reporting by Meu Timão, Corinthians has already advanced revenue from Esportes da Sorte referring to the months of October, November, and part of December 2026. The amount originally expected for the rest of the year is around R$ 20 million.

The club has also been resorting to advancing other revenue. According to the same report, Corinthians will receive R$ 10 million in October referring to an advanced installment of broadcasting rights negotiated through the FFU.

The situation carries more weight given the financial obligations currently accumulated by the club. Corinthians has two months of image rights payments overdue with players and members of the professional football coaching staff, in addition to pending bonuses.

According to the first-half financial statement cited by Meu Timão, the institution ended the period with a deficit of R$ 246 million and total debt of approximately R$ 2.8 billion.

Thus, the need to replace annual revenue that could reach R$ 200 million arises in a scenario in which Corinthians is already seeking alternatives to strengthen its cash flow. While the direct impact projected by the club from the Esportes da Sorte contract starts at R$ 480 million, possible consequences in other commercial agreements will still depend on the reorganization of football’s advertising market after the betting-company ban.

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