The Administrative Council for Economic Defense (CADE) has imposed preventive measures against the admission of new clubs to the Liga Forte União do Futebol Brasileiro (LFU) and the Liga do Futebol Brasileiro (Libra), pending the outcome of investigations into possible irregularities in their formation.
The decision, issued by Councilor Victor Oliveira Fernandes, rapporteur of the proceedings, seeks to safeguard CADE’s ongoing analysis of whether the establishment of the two leagues may constitute a merger not previously notified to the authority—a conduct known as gun jumping.
According to CADE, the admission of new member clubs before the completion of the investigation could potentially alter the structure and competitive dynamics of the leagues, complicating the assessment of their legality. In the case of LFU, the ruling specifically refers to the recent inclusion of Esporte Clube Vitória and Clube Atlético Mineiro, emphasizing that these additions may amplify the effects of the operation under review. CADE has requested documentation relating to these new memberships.
The investigations stem from complaints and inquiries launched by CADE’s General Superintendence (Superintendência-Geral, SG/CADE) in 2023, concerning the collective negotiation of commercial and broadcasting rights for Brazilian national football championships. The SG found preliminary evidence that the creation of Libra and LFU may involve elements of a joint venture subject to prior notification and clearance by the competition authority.
The preventive orders temporarily suspend any new admissions until the conclusion of CADE’s assessment. Noncompliance with the ruling could result in a daily fine of R$ 50,000 (€8,500).
The cases remain under review by the CADE Tribunal.