In a meeting this Tuesday (11) at the Ministry of Finance, directors of the main football clubs in Rio de Janeiro and São Paulo expressed that they want a larger share in the division of the cake in the Provisional Measure that regulates and taxes electronic betting companies. Minister Fernando Haddad estimates that taxation of the sector will generate revenue of R$ 15 billion (US$ 3b) per year for the Union and intends to send the MP to Congress in the coming weeks.
At the meeting that took place in Brasília, leaders of the clubs in Rio and São Paulo also demonstrated to the Ministry of Finance their dissatisfaction with the position of the Brazilian Football Confederation (CBF), which claimed to receive a percentage of the money from sports betting on football games in Brazil.
The clubs have not yet submitted a proposal. They heard Finance's explanation and defended that the assignment of "its brands, emblems, anthems, symbols and the like" is worth more than what is in the law. They also stated that the CBF does not represent them in this negotiation.
It was agreed that the clubs will have a week to think, then, of a proposal that contemplates them, and take it to Finance, so as not to delay the publication of PM, which the government wanted to have ready last month.
Representatives of Flamengo, Corinthians, São Paulo, Fluminense and Bahia were against the CBF receiving values for games between clubs, since it is entitled only to the games of the Brazilian national team. The allegation that the championships belong to the CBF was also not well received by the directors.
The CBF's intention is to have access to 20% of the resources from the 4% that it suggests to be transferred from the total betting revenue. Another annoyance of the clubs in relation to the election is that the entity would have, in previous meetings with the Federal Government, said to be representatives of the Brazilian teams. The CBF was represented in meetings with the government by Alcino Rocha, general secretary.
The current legislation (Law 13,756/2018) determines that 1.63% of the net revenue from betting is reverted to clubs, as companies exploit the images of associations and athletes. The law, however, has not yet been regulated. The clubs want a higher percentage and will present a counter-proposal next week.
Representatives of Corinthians (Duílio Monteiro Alves and Andrés Sanchez), Palmeiras, São Paulo, Santos, Flamengo (Rodolfo Landim), Vasco, Fluminense (Matheus Montenegro), Botafogo and Bahia participated in the meeting. It was the first one between Finance and the clubs.
Finance wants to keep in the PM the same percentages of Law 13,756, which determines that 5% of the net revenue of betting companies be divided as follows: 2.55% for the National Public Security Fund; 0.82% for basic education and 1.63% for clubs. The folder, however, is open to suggestions.
For clubs to increase their slice of the pie, there are two ways: 1) reduce the money that would remain with the Union to invest in public safety and education; 2) reduce the turnover of betting companies. According to interlocutors at Finance, option 1 has been ruled out by Minister Fernando Haddad.
Interlocutors from the economic team claim that Haddad wants to finalize the PM in the coming weeks, but is willing to talk to all the actors. So far there have been four meetings between representatives of Finance and the CBF. Haddad was not at any of the meetings.
CBF leaders sought out President Luiz Inácio Lula da Silva and asked for a meeting directly with the minister. As Haddad is in China, the next meeting is scheduled for this Friday (14) with the Executive Secretary of Finance, Gabriel Galípolo.
In the conversations, CBF representatives suggested that the entity keep 4% of the revenue from bookmakers, which is not endorsed by the economic team. The clubs made it clear to the government that the CBF does not represent them in these negotiations.
Source: GMB
