Minas Gerais audit court suspends R$32m in planned football club sponsorships

The Minas Gerais State Court of Accounts (TCEMG) has suspended, in an interim decision, R$32m of sports sponsorship contracts planned for 2027 between state-owned companies and the clubs Cruzeiro, Atlético-MG and América-MG.

The measure was signed on 3 November by acting councillor Licurgo Mourão. It prevents new agreements from being formalised and orders payments to stop if contracts have already been signed. The decision responds to Representation 1.220.989, filed by senator and governor-elect Cleitinho Azevedo of Republicanos.

The suspension rests on irregularities identified by the rapporteur, including the absence of technical studies proving an institutional return for the state companies. The criteria used to set the contract values also lack objectivity. Mourão said the state government announced the initiative as a way to compensate the clubs for financial losses from the ban on sports betting in Brazil, which raises doubts about the purpose of the spending. On that basis, the contract values would have been calculated on the needs of the clubs rather than the strategic interests of the sponsoring state companies Cemig and Codemig. The decision adds that there is no information on feasibility studies, on exposure of the state companies' brands, or on the reasons for selecting the clubs. The report also notes that the contracts were announced in an election year, when the law limits spending on advertising and sponsorship.

Azevedo characterised the sponsorship as electioneering and questioned its priority given the state's financial difficulties. He said he could not accept, as governor, taking more than R$30m from Cemig and Codemig for football teams, and that other priorities exist. The report describes friction between the current government, led by Mateus Simões of PSD, and Azevedo's transition team. Azevedo had already voiced concern about a projected deficit of R$10.5bn for 2027.

The suspension is provisional and is meant to prevent transfers of public funds while the court examines the legality, legitimacy and cost-effectiveness of the agreements. The TCEMG has not yet completed its analysis of the merits of the representation. The measure is already in force and is to go to the other councillors for endorsement at the next session of the TCEMG First Chamber, expected next week. The outcome of that endorsement will determine whether the suspension stays in place while the case proceeds.