Corinthians disputes Esportes da Sorte sponsorship exit
Corinthians is contesting Esportes da Sorte’s attempt to end its R$150m-a-year main sponsorship without a termination payment, arguing that the agreement should remain suspended while Brazil’s betting ban is unresolved.
Corinthians and Esportes da Sorte are negotiating the future of their main sponsorship after the betting operator sought to terminate the suspended agreement without paying a contractual penalty.The company notified the club on October 26 that it wanted to end the deal, which was renewed in February and runs until December 2029, with fixed annual payments of R$150m.Corinthians maintains that the contract remains suspended rather than terminated and believes a penalty would be payable if Esportes da Sorte proceeds with its exit.The disagreement centres on how Brazil’s prohibition on betting operations and advertising affects the parties’ contractual obligations, with their legal departments discussing the notice and its consequences.Esportes da Sorte considers the regulatory changes sufficient grounds to end the agreement without a termination payment, while Corinthians wants to await the political process before accepting that the relationship cannot continue.The federal government’s provisional measure stopped betting companies and online casinos from operating in Brazil in October, disrupting one of the football industry’s largest sponsorship categories.Congress must consider the measure within its statutory period for it to remain in force, leaving clubs and operators facing uncertainty over whether the restrictions will become permanent or change.Corinthians argues that this unresolved position supports keeping the agreement on hold, preserving the possibility of resuming the sponsorship if the legal framework allows.The dispute places a substantial recurring revenue stream at issue, with the fixed annual fee making the agreement an important part of the club’s commercial business through 2029.Whether a termination payment is due remains a matter of disagreement between the parties, rather than an established liability, and no negotiated settlement has been announced.Since suspending the Esportes da Sorte partnership, Corinthians has used temporary replacements in the main shirt position.Artificial intelligence company Jota appeared for one match before online marketplace Shopee agreed a sponsorship running until the end of the year.That arrangement provides Corinthians with a shirt-front partner for the closing months of 2026 but leaves its longer-term position dependent on the outcome of the Esportes da Sorte negotiations and subsequent commercial decisions.The case illustrates the contractual uncertainty created by the betting restrictions, as an operator seeks a permanent exit while its club partner favours suspension until the regulatory position becomes clearer.A Supreme Federal Court hearing on November 3 is due to bring together government representatives, betting organisations, clubs and broadcasters to examine the restrictions and their consequences, although the hearing itself is not expected to deliver an immediate ruling.