This significant increase occurred at a specific time when companies are competing in the market in the year they will have to comply with federal government regulations. Betting operators will have six months from the publication of the law on January 3 to regularize their operations with headquarters in Brazil. If they fail to do so, they will not be able to sponsor teams or advertise.
The biggest leap in value was from Corinthians: they received R$ 22 million (US$ 4.45m) through an agreement with Neo Química and increased to R$ 120 million (US$ 24.3m) with Vai de Bet. The agreement is valid for three years.
On the other hand, Flamengo closed a deal with Pixbet for R$ 85 million (US$ 17.2m) per year, valid for two seasons. The previous main sponsor was BRB, which paid around R$ 45 million (US$ 9.1m) per year. Pixbet is also headquartered in Curaçao.
São Paulo more than doubled the value to be received with the main sponsorship through the agreement with Superbet, closing a deal for a total of R$ 50 million (US$ 10.1m) net per year. The agreement is valid for two years. Previously, sportsbet.io paid R$ 24 million (US$ 4.85m) per year. Superbet is based in Malta and is well-established in other countries.
Bernardo Pontes, a partner at Alob Sports, which negotiates sports sponsorships, believes that these significant increases in contract values are unlikely to extend to all clubs. This is expected to happen only for teams with national impact.
"It's simple math. If you have a national audience, you have a lot of fans to convert. The impact on regional clubs among these fans and in their membership base is considerably reduced. I'm talking about TV viewership, as teams like Flamengo and Vasco have. There's no point in thinking that you'll have the same leverage as these clubs. It won't be as aggressive (a sponsorship from betting companies)," he analyzed.
Therefore, this trend is likely to increase the disparity between contracts for clubs with national and regional impact.
Another issue, in Pontes' view, is that there should be consolidation and a reduction in the betting market after government regulation. After all, not all companies will have the financial capacity to pay R$ 30 million (US$ 6.1m) for licensing. This will decrease sponsorship opportunities, and consequently, the value may decrease in the long term. Currently, there is a greater demand for shirt sponsorships than available spaces precisely because everyone wants to grow during the regulation period.
"We will know in a year, a year and a half, if first-line investment will remain at this level. With the regulated market, there will be fewer companies in operation. Fewer companies, more club offers," he said.
"There are 300/500 companies operating without regulation. We are talking about 40 Serie A and B clubs. This number of companies will decrease to 80/100. Not all will have the capacity to sponsor a football club. Some clubs will have available space," he added.
So far, the Ministry of Finance has received indications of interest in regularizing and paying the licensing fee from 134 betting companies. To register, they will have to pay a fee of R$ 30 million. There is still the possibility of other betting companies, which have not yet expressed interest, registering and regularizing their situation in Brazil within the next six months. All of them will be obligated to have their headquarters in the country. However, a market reduction is seen as likely.
Therefore, the most foreseeable scenario is that the current frenzy of betting sponsorships will last at least through the current cycle of contracts for major clubs. After that, it is expected to cool down.
Source: UOL Sports
