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An overview of “PROFUT” – Brazil’s new sports law

Published 26 January 2017 | Authored by: Roberto de Palma Barracco

Brazilian soccer is going through tough times[1]: sports results are still below national expectations, and Brazil’s current macro-economic outlook has hindered its development. The troubles facing Brazilian clubs are the result of several factors, but most notably anachronist management structures that are lacking in transparency and accountability combined with unprofessional (sometimes reckless) management practices[2] . Many clubs also have huge fiscal debts, constituted in part by taxes owing to the Government.[3]

To try to address this, and put Brazilian Soccer back on the map, Act n° 13.155 of 4th of August 2015[4], known as “PROFUT”, was enacted, and further regulated by the Decree n° 8.642 of 19th of January 2016[5]. The Act has just completed its debut season.

This article explains the key principles of PROFUT. Although the Act is focused on soccer (which will also be the focus for this article), it applies equally to all sports in Brazil,[6] so other sports clubs and entities, including those not involved in professional competitions, can also choose to participate in the program[7].

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About the Author

Roberto de Palma Barracco

Roberto de Palma Barracco

Roberto de Palma Barracco is a lawyer certified by the Brazilian Bar Association, OAB/SP; Faculty at the University of Oregon Law School Summer Sports Institute; Caribbean, Central and North America Advisor for the Iberian-American Law Review of Sports Business & Economics; member of the Brazilian Sports Law Institute (IBDD), the International Association of Sports Law (IASL), the Brazilian Bar Association Santos Subsection (OAB/Santos) Sports Law Commission and of the American Bar Association Dispute Resolution Section (ABA/DR).

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