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

Brazilian flag in football stadium in the stands
Thursday, 26 January 2017 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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Roberto de Palma Barracco

Roberto de Palma Barracco

Roberto de Palma Barracco is an attorney, mediator and arbitrator focused on the lifestyle industries - especially sports, art, entertainment, fashion and food. He is a leading conflict management & crisis prevention consultant in the lifestyle industries. Roberto’s transnational academic background is the basis of his work, his immersion in different cultures makes him a “translator” of legal cultures.

Twitter: @RBarracco

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