New Credit Program to Refinance Debts in Football

What’s going on in Brazilian football right now? The federal government is in an animated negotiation with clubs to create a credit program that could reach the incredible amount of up to R$ 20 billion! This initiative came on the heels of a Provisional Measure (MP) that banned online betting house operations in Brazil. And what’s the name of this great strategy? It’s the National Program for Financial Restructuring of Professional Football!

How Does This Program Work?

According to the UOL columnist Rodrigo Mattos, the idea behind the project is quite simple: clubs and Football Public Companies (SAFs) will be able to swap their heaviest debts for others with lower interest rates, using the BNDES rate (Banco Nacional de Desenvolvimento Econômico e Social). It’s important to emphasize that this is not debt forgiveness, but rather a loan model.

The money for this operation will come from the financial surplus projected for 2025. The idea is for all of this to be presented to the clubs and to move forward via an MP, which will then be voted on by Congress.

How Will the Loans Be Granted?

The loans will be provided by eligible banks, which will assume credit risk. The Union won’t take part in the risk, which is similar to a model already used with rural producers.

However, the use of the funds will be very specific. Here’s what clubs will be able to do:

• Pay labor debts and image rights
• Settle debts with the Receita Federal, INSS, and FGTS
• Make good on bank loans and civil debts
• Invest in infrastructure for the youth categories

Now, pay attention! The program is very clear: no using this money for everyday expenses, such as salaries, player signings, or any operational costs. Also, there will be no profit and dividend distribution to the SAF owners.

What If the Rules Aren’t Followed?

If someone follows the playbook and uses the money improperly or delays paying the installments, they’ll run into trouble. This may lead to the debt being due early and even the club being excluded from the program.

The payoff terms? Long, with a start grace period. The proposal suggests a repayment term of up to 20 years and a grace period of two years! In certain situations, the loan may even go directly to creditors.

Impacts of This Change

Like a wave, this negotiation accelerated after discussions about ending betting. And the impact could be significant—estimates suggest that football could lose about R$ 1 billion per year in direct sponsorships, not counting the collateral effects on advertising, billboards, and naming rights.

Recently, club executives have already started discussing the matter with the government, and the meeting was filled with leaders, including representatives from Internacional and Corinthians. The CBF also offered its input in this arrangement.

So what do you think of this proposal? Do you think it will make a difference in the football landscape?