Federal Senate Unanimously Approves PL 5.516/19, which Creates the New Football System (and the ASF)

Legal Area: Corporate Law

In October 2019, just over eight months into his first term as Senator of the Republic, Rodrigo Pacheco (DEM/MG) presented the project that created the new Brazilian Football System, "by typifying the Anonymous Society of Football (ASF), establishment of norms for governance, control and transparency, institution of means of financing football activities and provision of a transitory tax system".

Composed of only sixteen articles, the project intended, in its structural simplicity, to provide the necessary instruments for the transformation of football activity: from a collective liability to a path of sporting, social and economic development.

Perhaps for the first time, a legislative model was proposed that at the same time (i) broke with the secular tradition of placing the State at the service of the rescue of associative clubs - managed to satisfy the interests and plans of irresponsible directors (especially in the senses legal and economic term) - and (ii) created means to attract funders (and investors) to the football company; and all this without ignoring the need for cultural preservation of Brazilian football and its teams.

The proposal was well received by agents who, in some way, participate in the system: press, players, directors, regulators, magistrates, possible investors, among others. After all, until then, there was a downward curve that did not indicate a change of direction, even though in Brazil all the elements were available to form a structure comparable - or superior - to the structures of the main European countries.

Despite the prospects that were opening up, there was still a way to go. However, as of April 2020, an unexpected obstacle of global magnitude emerged: the pandemic.

With the Congress focused on emergency issues, the debate about football returned to the second (or lesser) level - except when treated in an unexpected and opportunistic provisional measure (despite the relevance of the merit)1.

And so the year ended; but with the news that the author of PL 5.516/19, Senator Rodrigo Pacheco, could present his name to the dispute for the presidency of the House.

The youth and the short time in the country's service, in the senatorial function - as he had already served as a federal deputy before -, did not prevent him from winning the dispute.

In fact, he won the country, as he conceived a new leadership, characterized by dialogue and the defense of democratic ideals.

Upon taking office, he reaffirmed the relevance of football, not just as a sporting event, but as a vector for integration and development, and appointed it as one of his priorities.

Another young and newcomer Senator Carlos Portinho (PP-RJ), who had just assumed the position due to the death of the incumbent, Senator Arolde de Oliveira, due to complications caused by the virus, was appointed to report on his project. of the pandemic.

The Rapporteur knew and knows the subject: in addition to being a lawyer specializing in sports law, he was the Legal Vice-President of Flamengo.

Upon taking charge, he promoted, within 45 working days, 26 meetings with the participation, as stated in his Report2, of approximately 1,650 people. In addition, he came across 31 amendments, presented by his fellow senators, with the most diverse purposes, 14 of which were accepted, partially or totally.

At the end, he spoke in favor of the Project, with "punctual changes and inclusion of related themes that, materialized in the form of Substitute (...), will add to the ecosystem of the football business environment".

Finally, submitted to the Plenary, PL 5.516/19, authored by Senator Rodrigo Pacheco, was unanimously approved on June 10th.

In the context of the debates, Senator Romário (PL-RJ) stated that it was a milestone in the professionalization and management of football. Senator Álvaro Dias (Podemos-PR) maintained that the age of amateurism needed to end and that that day - of approval - marked a very important date for Brazilian football. And Senator Jean Paul Prates (PT-RN) called the initiative "transforming".3

Submitted to the Chamber of Deputies, it is now expected that this congressional house renews the recognition of the relevance of the content and the social and economic impacts that the new football market will bring to the country - as, in fact, it has already recognized, in 2019 -, and vote on the Project with the speed required by the dramatic situation of most Brazilian teams.

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1 Or when the possibility of convergence of PL 5.516/19 with PL 5.082/16 was suggested, as a substitute presented by Federal Deputy Pedro Paulo (DEM/RJ) to the original project authored by Deputy Otavio Leite (PSDB/RJ).

2 Available here.

3 Available here.

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Rodrigo Monteiro de Castro Rodrigo Monteiro de Castro

Rodrigo Monteiro de Castro is specialized in corporate and business laws, corporate transactions (M&A), capital markets and contracts.

São Paulo - Brazil

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