World Cup Brazil 2014

Does FIFA have more Power than the Brazilian Congress?

A first demonstration of power came in September of 2009, when FIFA requested to the Federal Government an extension of tax exemptions (Brazil Government had already agreed to exempt FIFA’s revenues, but FIFA said that, to host the Cup, ALL official partners should also be exempt); in May 2010, a law was approved to accommodate FIFA’s demands.

OK, in that case, the Government might say that there was a misunderstanding of the rules imposed by FIFA to all countries which apply to host the World Cup – Brazil knew the rules and should have complied with them from the start.

Then, in November of 2009, FIFA requested the city Government of Sao Paulo to change the Clean City law, so that FIFA’s partners could advertise in billboards near the stadiums (the law isn’t exclusive for those partners, but CBF already showed that will take action against ambush marketing – which means that only official partners would be allowed to adverrtise). The city of Sao Paulo (the only one in Brazil where such restrictive law exists) is still examining the matter.

Now, there is another case where the Brazilian legislation goes against FIFA interests.

Three days ago, a law was amended in Brazil to improve organization and increase safety of Sports events and fans. The law of amendment, in article 13a, reads:

“Article 13-A. These are requirements for access to and permanence in a sports venue, without prejudice of requirements determined by other laws:

II – not to bear objects, drinks or substances which are prohibited or are susceptible of generating or can possibilitate the practicing of acts of violence;”

That means that the law now prohibits alcoholic drinks in stadiums. Even before the law, CBF had already in 2008 signed a letter of compromise with the Public Prosecutors, to ban alcohol from the football matches.

Budweiser is one of the main partners of FIFA, and the corporation which owns Budweiser is also owner of the major Brazilian beer brands, such as Brahma, Skol and Antarctica (that means that Budweiser would sell lots of beer in the stadiums, if it was allowed).

Yesterday, Brazilian journalist Ancelmo Gois, who publishes a column at influential newspaper O Globo, and who is known for having good sources inside CBF and the Government, informed that “FIFA asked the suspension of the law of protection to Sports events, which Lula approved recently – the contract between FIFA and Budweiser demands that the beer is sold in stadiums during the World Cup”.

So, for FIFA to fullfil its obligations with Budweiser, the law must be suspended during the World Cup.

In Brazil, to “suspend a law”, another law is necessary.

It remains to be seen if FIFA will get that law.

This entry was posted on Friday, July 30th, 2010 at 9:24 am and is filed under business, legislation.