The Brazilian National Team's 7-1 defeat painfully opened our eyes to the current reality of Brazilian football.

The problems are numerous: ranging from legislation that weakens the clubs' training efforts, to the electoral process of football federations, to the high costs of managing new arenas.

All of them are complex and have, at best, medium-term solutions.

Despite the urgent need to reverse this negative situation, we understand that no attempt at a solution will be effective if we do not address the serious problems arising from the chaotic situation currently experienced by Brazilian football clubs, which are permanently responsible for training and supplying talent for our national team.

Over the years, Brazilian football has grown accustomed to living in a world where failure to fulfill obligations has become, for many, synonymous with effective and successful management. The inevitable consequence has been the accumulation of tax and labor debts that stifle club management.

Today, we have a unique opportunity to establish a new framework for the governance and management of these sports entities, ending long-standing, reprehensible practices and forcing clubs to faithfully fulfill their financial, labor, and tax commitments.

A law is about to be voted on by Congress that will severely punish clubs that fail to honor their social mission and commitments: the so-called Sports Fiscal Responsibility Law.

With this law, scheduled to be voted on in early August, clubs will be required to regularly report to society and pay their debts on time. Failure to do so will result in relegation to lower divisions and the holding of their directors accountable.

In order for clubs to adapt to this new regulatory reality, an extension of their tax debts is planned without any total or partial forgiveness or amnesty. 

It's interesting to note that one of the pillars of the Bundesliga—the organization that organizes the German Championship, our tormentors in this World Cup—is precisely the on-time payment of debts. No team can participate in the championship unless it certifies its financial integrity.

That's why we, representing the Nação Rubro Negra - the biggest fan base in the world - have joined other major Brazilian clubs to reinforce the importance of approving the Sports Fiscal Responsibility Law.

We are firmly convinced that the creation of this new framework and the moralization of our sector will be the first step towards returning to being the country with the best football in the world.

Eduardo Bandeira de Mello

President of the Flamengo Regatta Club

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