Author: Sahil Jain
Bookmakers are expected to invest more than US$ 64 million in Brazilian soccer this year, with 19 of the 20 teams in the Serie A of the Brazilian Championship being sponsored by companies in the segment. The investment is equivalent to a monthly average of R$1.43 million per team, or an annual average of R$17.2 million per team.
However, the government is seeking to regulate the national sports betting market and intends to charge a license of R$30 million, valid for five years, for bookmakers to operate in Brazil through advertising. This means that bookmakers will have to pay more than the value of the contracts they have with soccer teams to continue operating in Brazil.
Currently, Corinthians receives an annual sponsorship of more than 30 million reais, thanks to its partnership with Pixbet. By displaying the bookmaker’s brand on the shoulders of the uniform, the club receives more than the main sponsorship paid by Neo Química, a pharmaceutical company that pays R$17 million.
A survey carried out by sports marketing agency ‘Neo Brands’ shows that the only team in the Serie A not linked to a bookmaker is Cuiabá, in Mato Grosso. The brands with the most sponsorships in the competition are Pixbet and Esporte da Sorte. The amounts invested by this market vary greatly, from R$5 million paid to Goiás and Red Bull Bragantino to R$35 million paid to Corinthians.
Apart from Cuiabá, Palmeiras do not display the brand of any bookmaker on their uniform because the contract does not include it. The total investment value of all bookmakers amounts to R$327 million, according to research by Neo Brands. The segment dominates the sponsorship space in Brazilian soccer, with 12 of the 20 teams in the first division of the Brazilian Championship occupied by sports bookmakers.
Botafogo have the biggest sponsorship contract for a bookmaker, worth 27.5 million reais with Parimatch. Meanwhile, Palmeiras have the biggest main sponsorship contract in the league at 80 million reais a year with Crefisa, which is also owned by the club’s president, Leila Pereira. Flamengo continues to receive 30 million reais from the BRB bank.
In all, the total amount spent on the main sponsorships of the Serie A clubs in the Brazilian Championship is R$356.4 million. When only the bookmakers’ sponsorships are analyzed, the total exceeds R$200 million, or more than half of what was invested by companies from other sectors to appear in the most valuable area of the clubs’ shirts.