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

Published 26 January 2017 By: Roberto de Palma Barracco

Brazilian flag in football stadium in the stands

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 focus his practice on crisis prevention, conflict management and negotiation in the sports & entertainment industries.

He is a Brazilian Bar Association certified lawyer, OAB/SP; Summer Sports Institute University of Oregon School of Law faculty; CAMES neutral; Mackenzie Presbyterian University researcher IB|A Alliance Institutional and Academic Relations advisor; Universidade do Futebol columnist.

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