What Is Happening with PROFUT and Sports Betting?

In 2015, the Brazilian government took an important step for football with the launch of the Football’s Management Modernization and Fiscal Responsibility Program, better known as PROFUT. The idea was simple: to promote more transparent and democratic management and help balance football clubs’ finances. In practice, this meant allowing clubs to refinance their debts with the government, as long as they followed certain fiscal and management rules.

The Creation of APFUT

In January 2016, the Public Authority for Football Governance (APFUT) was created. What was its purpose? To oversee the PROFUT counter-parties and ensure everything was working in a more responsible way. But, to be honest, APFUT ended up becoming a rather hollowed-out body, failing to fulfill the role it should have played.

The New Twist with Betting

Recently, the landscape of Brazilian football changed with a decision by President Luiz Inácio Lula da Silva. He banned betting through a provisional measure signed on Friday (25), and of course, that didn’t go unnoticed. Football clubs, which had been relying on sponsorships from betting houses—who injected more than R$ 1 billion into domestic football—made an appeal to the government for a new PROFUT. After all, with this change, who will make up for the losses?

What Comes Next?

For now, Lula is not open to discussing the issue. Sources close to the situation said he is firm in his decision to end the betting houses’ operations and does not intend to debate ways to help clubs before the next elections.

That said, it’s quite possible the government will find a way to support football—perhaps by extending the refinancing of tax debts. But, due to the complexity of discussions about amounts and control rules, that probably won’t happen anytime soon.

So, what to expect? Let’s keep an eye on upcoming developments and see how this story unfolds.

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