Brazil’s football clubs are facing a major commercial shock after President Luiz Inacio Lula da Silva signed a provisional measure restricting online betting companies, their biggest sponsors. Betting revenue represented 34% of clubs’ commercial income in 2025, or about US$200 million (S$255.5 million), according to Galapagos Capital. Fourteen of the 20 Brasileirao clubs have betting companies as their main sponsors, including Flamengo, whose US$46 million annual agreement with Betano is the largest sponsorship deal in South American football. The measure requires betting advertisements to be removed after Oct 5, while the Senate has 120 days to decide whether to convert it into law. Industry associations have asked Brazil’s Supreme Court to suspend the measure, arguing that it is unconstitutional. Clubs and experts warn of asset devaluation, legal disputes and difficulty replacing sponsors, despite support announced by the Minas Gerais state government for affected local teams. Brazilian clubs have won the last seven Copa Libertadores titles, and 12 of the past 14 finalists were Brazilian, while nine of the region’s 10 most valuable clubs are in the Brasileirao.