MAR 26 DE NOVIEMBRE DE 2024 - 13:35hs.
Projections

Clubs in Brazil would receive US$ 400k a year with bets and discuss whether it pays off

Crossing calculations from football clubs and bookmakers show that each of Brazil’s main teams would be entitled to an average of R$ 2 million (US$ 400,000) per year in exchange for giving up their brands for the regulation of sports betting. The discussion at the moment is whether the negotiation is worth it.

As news outlet Olhar Olímpico showed on Friday (5), a study by H2 Gambling calculates that the GGR of Brazilian bookmakers will not exceed R$ 6.9 billion (US$ 1.4b) in 2024.

A 2018 law, amended in 2021, already provides for a tax of 1.63% of the GGR as compensation to Brazilian sports entities that assign the rights to use their denominations, brands, emblems, etc.

By these numbers, the transfer would be around R$ 100 million (US$ 20m) for all modalities. Clubs estimate that football accounts for around 80% of sports bets, with a portion of them involving foreign clubs.

The calculation is that between R$ 30 million (US$ 6m) and R$ 50 million (US$ 10m) a year would be distributed exclusively to Serie A clubs, with those with greater support and repercussion being the object of more bets and, naturally, receiving more. Hardly a single club would be entitled to more than R$ 5 million (US$ 1m) a year.

In meetings with the Ministry of Finance, the clubs defended receiving triple, which the government did not agree to negotiate.

Clubs have two options:

1) accept receiving an average of R$ 2 million (US$ 400k) per year in exchange for the transfer of the image or

2) authorize the use of their trademarks, without government transfers, but keep under their control a property that may be worth more money in negotiations directly with the bets.

Today, the tendency is for several clubs to opt for the second option.

The comparison is with the Caixa Lotteries, which transact a quarter of sports betting, but transferred R$ 1.6 billion (US$ 323m) to sports.

Football clubs alone were entitled to R$ 79 million (US$ 15.95m) last year, more than they will earn with sports betting.

Source: UOL