New law in Brazil opens up investment opportunities in soccer market

On August 6, 2021, the Brazilian Soccer Community introduced Law 14,193 (Lei No. 14,193, de 6 de Agosto de 2021), which now enables soccer clubs to set themselves up as Soccer Limited Companies.  The law was passed to encourage Brazilian soccer clubs to move away from their usual association set-up into one of a limited liability company, with a particular focus on those running women's and men's professional soccer clubs.

Whilst must clubs still organize themselves as non-profit civil associations, it is hoped that this new standard for the professionalization of soccer will result in better transparency and governance and turn non-profit associations into business entities.

Offering a more structured and compliant way of doing business, restructuring debts and better defining labour, tax and civil matters, this new approach is a great opportunity for investors in the sports sector, as well as for the Brazilian soccer community.

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If you are interested in knowing more about the current opportunities available in the Brazilian soccer market or require assistance please contact Ricardo Madrona at ricardo.madrona@madronalaw.com.br or Danilo Mininel at mininel@madronalaw.com.br

 

About Madrona Law:

Madrona Law is a full service, top 25 law firm based in São Paulo and Brasilia, Brazil.
With a focus on corporate law, mergers and acquisitions, capital markets, financial law, and infrastructure, in addition to a strong performance in tax, real estate, civil litigation, and labor law, our motivation is to invest in people and work so that our clients reach their goals, always with ethics and responsibility. With a team of more than 110 legal professionals with great experience and with recommendations by several national and international publications, the team at the firm are aligned with the principles and objectives that they set out to achieve.