New MP could force Sportingbet off Palmeiras shirt, lawyer explains contract stakes | OneFootball

A new federal provisional measure has thrown Palmeiras' Sportingbet shirt deal into doubt, with betting sponsorships facing swift removal in Brazil.

According to Nosso Palestra, the measure restricts advertising, sponsorship and brand exposure by betting companies, and orders clubs to strip betting signage within 10 days.

Palmeiras' agreement with Sportingbet began in January 2025 and runs until December 2027, paying R$ 100 million a year in fixed fees, rising to R$ 170 million per season if targets are met. The rules could halt brand exposure before the scheduled end.

Sports law specialist Marco Antonio Muniz da Costa Junior views article 16 as the most sensitive, as it bans betting-linked sponsorships. He believes this could take Sportingbet off the shirt before the deal expires, striking at the brand exposure contracted.

Even if the logo comes off, the contract is not automatically terminated. Any effect on future payments or termination depends on the clauses, including whether a change-in-law provision allows suspension, renegotiation or ending the deal, and who assumed that risk.

If exposure is interrupted, Palmeiras must explore alternatives for the master slot, while other assets such as boards, marketing actions, digital content and related inventory may also be affected. The club's legal team will assess obligations, potential renegotiation or an end to the deal, and any compensation where delivery becomes impossible. The lack of a transition period also raises who covers any losses.

Source: Nosso Palestra

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