Experts criticise clubs' rhetoric on ending betting sponsorships

Experts criticise clubs' rhetoric on ending betting sponsorships The tone adopted by representatives of Brazilian clubs during Tuesday’s (3) public hearing at the Supreme Federal Court (STF) on the ban on betting companies drew criticism from football marketing and finance experts. According to a UOL report that consulted experts on the subject, the argument that banning betting companies will spell the end of Brazilian sport sounds disproportionate. At Tuesday’s (3) hearing, club executives cited unemployment and the end of investment in youth development and women’s football as arguments to try to block the measure. Fluminense president Matheus Montenegro even questioned how clubs would survive the loss of this revenue, contrasting the "tragedy of unemployment" with the already well-documented suffering of families affected by gambling addiction. The financial impact will be felt A study found that top-flight clubs’ recurring revenue fell by around 25% after the ban, and the Brazilian Football Confederation (CBF) projected a R$420 million shortfall for Brazilian football in 2027. However, analysts say the ban alone cannot be held responsible for that bill. Cesar Grafietti, an economist and sports finance consultant, says the real problem was not the ban but the irresponsible use of the money while it was pouring in. "What I consider misuse is taking on debt beyond the positive impact of exceptional revenues. It shows an uncontrollable urge to spend without financial backing or sound judgment," the expert explained in an interview with UOL. The consultant stresses that debt and late salary payments are nothing new at most Brazilian clubs. With the exception of half a dozen teams, the cash injection did not improve the standard of play in the Brazilian league; it merely made it "much more expensive." This view is shared by Amir Somoggi, director of Sports Value, who describes the multimillion-real sponsorship deals from betting companies as "easy money" that made club executives complacent. Without the need for creative marketing campaigns, clubs stopped exploring other sectors of the economy, such as retail, healthcare and food, becoming dependent on a single industry to bankroll inflated squad costs. "Clubs are addicted to money. They’re always leveraged, paying interest, in debt, robbing Peter to pay Paul," Somoggi criticized in an interview with UOL. Fábio Wolff, managing partner of Wolff Sports, agrees that clubs have the right to defend their existing contracts and seek legal certainty. However, he stresses that the debate cannot be limited to money, given football’s social responsibility. "Sponsorship is a source of revenue, not a structural solution to management problems," Wolff told UOL. This article was translated into English by Artificial Intelligence. You can read the original version in 🇧🇷 here.