The Emergence of Sports Law in Brazil
For decades “Sports” and “Law” occupied opposite fields and operating as separate fields. This reality, however, has changed profoundly as sports became a mass commercial phenomenon, furthering a substantial increase of economic interest related not only to its practice, but also to marketing, licensing rights, athletes’ transfers and other rapidly developing markets connected to its globalization.
In this context of expansion and sophistication, the legal relationships intrinsic to the world of sports began to require specific regulations and proper mechanisms for conflict resolution. The response to this demand, from the perspective of the Brazilian legal system, was the emergence and consolidation of Sports Law as an autonomous discipline, dedicated to protecting the peculiarities of this constantly evolving ecosystem.
The Brazilian Sports Law Scenario
Today’s world of sport is becoming increasingly professional, competitive and corporate. As can be seen, sport has transformed into a true industry, generating multiple legal relationships with significant economic relevance and broad social impact. It was precisely from this perspective that the Brazilian legislators introduced a significant set of new rules and regulations into Brazil’s legal framework.
The evolution of Brazilian sports law began with the publication of the 1988 Brazilian Federal Constitution, the first to address the topic. This Constitution granted the Union, the States, and the Federal District concurrent legislative competence over sports, and it also determined that the Judiciary may only adjudicate cases related to sports discipline and competitions after all instances of the Sports Justice bodies have been exhausted. Furthermore, it enshrined the State’s duty to encourage the practice of sports as an individual right, observing:
- the autonomy of ruling sports associations as regards their structure and operation;
- the provision of public funding primarily for the promotion of educational sports and, in specific cases, for high-performance sports;
- different treatment for professional and amateur sports; and,
- the protection and incentive for Brazilian-created sporting activities.
With the constitutionalization of sport in 1988 a new legislative cycle began, launched by Law No. 8,672/93, better known as ‘Zico’s Law’. This Law promoted the first attempt to adapt Brazilian Law to the modern worldwide system for the development of sport, enabling investment partnerships in the sector.
The “Zico Law” remained in force until 1998, when Law No. 9,615, popularly called ‘Pelé’s Law’, was published during the time the former athlete Pelé was Brazil’s Extraordinary Minister for Sports. Law No. 9,615/98 constituted a landmark in the general regulation of Brazilian sport, supplemented by the Brazilian Consolidation of Labour Laws (CLT) for labour aspects, and the Brazilian Civil Code (CC/2002) for civil aspects, among others.
The Pelé Law and its Most Important Innovations
Pelé’s Law revolutionized the relationship between sports entities and professional athletes in Brazil by establishing that an athlete’s sports link to a sports entity is accessory to the employment relationship between the same parties. This replaced the former “passe” system, where an athlete would remain bound to a sports entity even after the termination of their labour contract and brought Brazil up to par with modern athletes’ transfer market standards. The law also set out basic sporting principles; defined the nature and purpose of sport; introduced the Brazilian Sports System; regulated professional sports practices; set standards for transparency and compliance in the administration of sports entities; organized Sports Justice system; established rules for the public funding of sports, while dictating other rules for sports in general.
Recent Reforms: SAF, General Sports Law, and Fixed Odds Betting:
Over the last years, Brazilian sports law has undergone significant innovations aimed at addressing certain deficiencies and align with best practice in international sports law.
Sociedade Anônima do Futebol (Law No. 14,193/2021): Among these innovations is Law No. 14,193 (the Sociedade Anônima de Futebol – SAF), which established a new corporate model specifically for football allowing clubs to become corporate entities. This change aims to modernize and professionalize the corporate management of Brazilian football. The SAF Law was designed to ensure greater legal certainty for investors, meet market demands for fundraising, create a favorable tax regime, and offer opportunities for restructuring club debts, thereby aligning the model with international standards.
General Sports Law (Law No. 14,597/2023): Thirty years after the publication of the Pelé Law, Law No. 14,597/2023 (Lei Geral dos Esportes– LGE), consolidates and systematizes the general rules of sport institute the National Sports System (Sinesp), aiming to collaborate in the creation and improvement of public policies connected to sports. Among the most impactful topics, the LGE reaffirms guidelines on broadcasting rights and image rights, preserving the ownership of the exploitation and commercialization of images belonging to the sports organizations that host the games. The LGE also maintains the limitation on remuneration for athletes’ image rights.
Fixed Odds Betting (Law No. 14,790/2023): Another structural change stems from Law No. 14,790/2023, which caused a major impact on the Brazilian sports scene, allowing of fixed-odds betting on sports events and online games. The operation of betting activities must be carried out in a competitive environment, subject to prior authorization issued by the Ministry of Finance.
Complementary Law No. 222/2025: Permanent Framework for Sports Incentives: Complementary Law No. 222/2025 created the Permanent Framework for Sports Incentives, unifying rules and definitively consolidating the sports financing model in Brazil. The new law repeals the former Sports Incentive Law (11,438/2006) and now offers predictability for private investors, something considered essential for long-term projects. The text authorizes the use of income tax, state value-added tax, and services tax as instruments of tax relief and allows states and municipalities to create their own incentive mechanisms. The deductions apply to donations and sponsorships for previously approved sports and parasports projects, but with a clear rule to prevent misuse: benefits between related parties are prohibited. The law also tightens governance and transparency requirements. Among the new obligations are exclusive bank accounts for each project, detailed documentation of expenses, audits, and the possibility of direct monitoring by financiers.
In addition to state legislation, contemporary Brazilian Sports Law is also shaped by norms which were issued by international sporting federations (i.e. the Fédération Internationale de Football Association (FIFA)’s regulations) and national sporting federations and leagues (i.e. the Brazilian Football Confederation (CBF)’s regulations and statutes), with restricted effect, subjecting only to athletes who are professionally registered at these entities. At the same time, the case law delivered from the decisions of sports justice bodies relating to discipline and competitions of each Sports Court, such as the Superior Tribunal de Justiça Desportiva do Futebol (STJD), also became increasingly relevant for the improvement of Brazilian Sports Law related to the formal practice of all kinds of sports in Brazil.
Conclusion
According to recent estimates, the sports market in Brazil accounts for approximately 1.7% of the Brazilian Gross Domestic Product (GDP), on a growth trajectory driven by new sources of revenue, such as modernized tax incentives, the increasing professionalization of sports entities, and the entry of private investors.
As the economic importance of national sports rises, interest in all aspects of Brazilian Sports Law is also growing. The assessment is that the legal development of the sector is likely to expand further, adding regulatory complexity and the demand for specialization, as well as for robust mechanisms of governance, integrity, and compliance.
The recent legislative innovations mentioned above signal a cycle of modernization aimed at aligning Brazilian sports law with international best practices. The common goal is to promote a more professional and sustainable management of sports in Brazil, as well as ensuring legal security and providing financing for sports development nationwide.
Authors: Lucas de Mello Campos Santos and Claudio Mattos
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