São Paulo’s leading football clubs are coordinating their response to proposed betting advertising restrictions that could significantly affect sponsorship revenues across the city.

Five major São Paulo football clubs have joined forces to oppose proposed legislation that would restrict betting advertising across the city, amid concerns over the potential impact on lucrative sponsorship agreements.

Representatives from Corinthians, Palmeiras, São Paulo, Santos and Juventus met at the São Paulo Football Federation to discuss the proposals and coordinate a potential response.

Around 40 professionals attended the meeting, including representatives from the clubs’ legal, communications and marketing departments as well as executives from the betting industry.

At the centre of the debate is Bill 560/2025, which could be voted on by São Paulo’s city council and would prohibit betting advertising at events held within the city.

Bill targets betting advertising at events

Under the proposal, betting companies would no longer be permitted to advertise at events organised by either public or private entities, regardless of whether those events are operated for profit.

For football clubs, the restrictions could significantly reduce the sponsorship inventory available to betting partners.

The legislation would prohibit betting advertising through signs, banners and display panels at stadiums, arenas, gymnasiums and other sporting venues.

Restrictions would also extend beyond sport. Betting advertisements would be prohibited across public transport inventory, including exterior panels and rear windows on buses.

Violations could result in fines of BRL50,000 ($10,000), while organisers could also face a ban on hosting events for up to two years.

Shirt sponsorship could also be affected

The current version of Bill 560/2025 does not explicitly prohibit betting logos from appearing on football shirts.

However, some city councillors are reportedly seeking to extend the proposal to include shirt sponsorship, significantly increasing the potential commercial consequences for São Paulo’s clubs.

Betting companies have become major sponsors of Brazilian football following the rapid expansion of the country's betting sector.

Three of São Paulo’s biggest clubs alone have substantial agreements with operators. Corinthians is partnered with Esportes da Sorte, Palmeiras with Sportingbet and São Paulo with Superbet.

Combined, those three sponsorship agreements are worth approximately BRL350 million annually.

A prohibition covering shirt sponsorship could therefore directly affect some of the most valuable commercial agreements held by the city’s football clubs.

Clubs warn of competitive disadvantage

The geographic nature of the proposed restrictions is another major concern.

Because the legislation would apply specifically within the municipality of São Paulo, clubs elsewhere in Brazil could continue generating revenue from betting advertising while teams based in the city would face additional restrictions.

Reinaldo Carneiro Bastos, president of the São Paulo Football Federation, warned that this could create an uneven commercial environment that ultimately affects sporting competition.

“If the city’s clubs lose this revenue, it will create a disparity that extends to the pitch,” Bastos said.

According to the federation president, betting advertising has become a primary source of commercial revenue for clubs, meaning teams such as Corinthians, Palmeiras and São Paulo could be disadvantaged relative to rivals operating elsewhere.

Matches outside São Paulo raised as concern

The clubs are also considering how the restrictions could affect existing contractual obligations with betting sponsors.

One concern is that teams could potentially be forced to stage matches outside the city of São Paulo in order to continue delivering advertising rights included in their sponsorship agreements.

Such a scenario would create additional operational and commercial complications while demonstrating the potential consequences of implementing advertising restrictions at municipal rather than national level.

The clubs and betting industry representatives have not yet determined their final response to the proposed legislation.

Possible measures discussed include collective action and educational campaigns, while stakeholders are also coordinating discussions with political representatives in São Paulo.

Betting sponsorship debate intensifies

The dispute comes as betting advertising and sponsorship continue to face increased political scrutiny in Brazil following the introduction of the country's regulated fixed-odds betting market.

For São Paulo’s football clubs, however, the debate has an immediate financial dimension.

Betting companies now represent significant sponsorship partners, meaning restrictions on stadium advertising or shirt branding could remove valuable commercial inventory and affect existing agreements.

The involvement of five clubs alongside the São Paulo Football Federation also demonstrates that the proposed restrictions are being treated as an industry-wide issue rather than a challenge for individual teams.

With Bill 560/2025 progressing through the city council and potential amendments threatening to extend the restrictions to football shirts, São Paulo’s clubs are now seeking a coordinated approach to protect sponsorship revenues while the city's betting advertising rules remain under debate.

Source: IGB