Palmeiras may lose Sportingbet on shirt after new MP, legal view | OneFootball

The new Provisional Measure published by the Federal Government on Friday (25) brought uncertainty for Brazilian clubs that have sponsorship deals with betting companies. Among the main affected is Palmeiras, which has Sportingbet as its main sponsor.

The measure sets restrictions on advertising, sponsorship, and brand exposure for betting companies in Brazil. Among the provisions is the requirement to remove sponsorship displays within ten days, which could cause immediate changes to club shirts and other commercial spaces.

In Palmeiras’ case, the situation is especially relevant because the club has had a contract with Sportingbet since January 2025, valid until December 2027.

The agreement provides for R$ 100 million annually in fixed amounts, which can reach R$ 170 million per season if targets are met. With the new legislation, however, the brand’s exposure may be interrupted before the originally scheduled end.

Sportingbet could leave Palmeiras shirt

The most sensitive point for football, according to lawyer Marco Antonio Muniz da Costa Junior, a specialist in Sports Law and professor of Football Law, is article 16 of the MP.

According to the specialist interviewed by NOSSO PALESTRA, the provision prohibits sponsorships related to betting companies and sets a deadline for removing the brands.

“For football, the most sensitive provision is article 16 of the MP. It expressly prohibits sponsorships linked to betting companies and, in paragraph 2, gives ten days for the removal of sponsorship displays.”

In the lawyer’s assessment, the measure could cause Sportingbet to stop appearing on Palmeiras’ shirt before the contract ends.

“At Palmeiras, this could remove Sportingbet from the shirt before the end of an agreement announced to run until 2027. This short deadline directly affects what the sponsor contracted for: brand exposure.”

Contract is not necessarily terminated

Despite the possibility of the brand being removed, the legislative change does not automatically mean that the contract between Palmeiras and Sportingbet has been terminated.

According to Marco Antonio, it will be necessary to analyze the clauses of the agreement to understand what the financial and legal consequences of the new legislation will be.

“This does not mean the contract is automatically terminated or that future installments are no longer owed. The answer depends on examining the contract: is there a clause for legislative change? Does it allow payments to be suspended, values to be renegotiated, or the sponsorship to be ended? Who assumed that risk?”

The definition may therefore depend on the clauses set out in the contract signed between Palmeiras and Sportingbet, in addition to the legal interpretation of the effects of the new MP on agreements that were already in force.

Palmeiras may need to look for a new sponsor

If Sportingbet’s exposure is effectively interrupted, Palmeiras will have to evaluate commercial alternatives to fill the space left by the main sponsor.

In addition to the shirt, the measure may affect other commercial properties linked to the brand, such as boards, marketing activities, digital content, and other exposure spaces related to the contract.

The scenario may also trigger a discussion about the amounts involved in the agreement and about possible financial compensation for the period in which the club is unable to deliver the commercial properties originally contracted.

Lawyer points to lack of transition for current contracts

Marco Antonio also drew attention to the fact that clubs and companies signed contracts while the betting market was authorized and regulated.

“The criticism is that the State itself authorized this market and now requires the removal of the brands within ten days, without establishing a transition for the contracts clubs signed in reliance on that authorization.”

For the specialist, there is a relevant legal question about who should bear the financial impact resulting from the inability to fulfill part of the contracts.

“The MP says when Sportingbet has to leave the shirt, but it does not say who pays the bill for the contract left behind.”

The situation should be analyzed by Palmeiras’ legal department, especially regarding the obligations set out in the contract with Sportingbet, future payments, and any possibilities for renegotiation or ending the relationship.

Financial impact on Palmeiras

Sportingbet represents a significant portion of Palmeiras’ commercial revenues. The contract, originally announced with a fixed annual value of R$ 100 million and the possibility of reaching R$ 170 million with bonuses, was signed to run until December 2027.

The possible interruption of the brand’s exposure therefore opens a discussion that goes beyond the presence of the logo on the shirt: it involves future revenues, contractual obligations, commercial properties, and the need to find a possible replacement for the main sponsor slot.

For now, the main point of attention for the club is understanding how the new legislation will be applied to existing contracts and what the specific legal and financial effects will be on the agreement with Sportingbet.

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