Brazilian football powerhouse Sport Club Corinthians Paulista could be on the hook for over R$2.8 million ($520,000) following a wave of 30 labor lawsuits connected to its former esports business.
Though local courts have held the club responsible, the R$2.8 million total reflects the sum of all incoming claims, not a settled final amount. How much Corinthians actually owes will be determined on a case-by-case basis through enforcement proceedings and appeals. Figures could still shift once interest and inflation are calculated.
Back in July 2022, Corinthians licensed its brand name to a separate company called CDS E-Sports e Entretenimento Ltda. Under that licensing deal, CDS took on full responsibility for running the esports teams across several esports titles, including Free Fire, Counter-Strike 2 (CS2), and VALORANT.
The agreement stipulated that CDS would be responsible for hiring players and staff, paying their salaries, and covering all labour and operational costs. Corinthians has mentioned that the arrangement was strictly a brand-licensing and commercial partnership, structured specifically to separate the club from any employment responsibilities toward the esports staff.
In practice, CDS fell behind on payments. Over 2024 and 2025, there were repeated public reports of unpaid salaries, poor working conditions, and in some cases, teams being excluded from competitions because of these problems. Corinthians eventually ended its contract with CDS in late August 2025, after sending formal notices and attempting to renegotiate terms. At that point, the club said it no longer had an official esports team.
Although the employment contracts were technically with CDS, former players and staff have sued both CDS and Corinthians directly. According to a report by outlet Meu Timão, 13 of the 30 identified lawsuits had reached a decision. In 10 of those 13 cases, the courts ruled that Corinthians shared responsibility for the debt with CDS under a legal principle known as subsidiary liability. The remaining 17 cases are still pending.
Subsidiary liability means that if the company primarily responsible for a debt, in this case CDS, cannot or does not pay what it owes, the party that benefited from the work can be ordered to pay instead. The courts have repeatedly reasoned that because the players and staff worked under the Corinthians name, using the club’s branding, structure, and identity, Corinthians directly benefited from their work regardless of which company technically employed them. That benefit is what opens the door to holding the club responsible once CDS fails to pay.
Lawyers representing the players and staff who filed the lawsuits have pointed out that while each individual claim is relatively small for a football club of Corinthians’ size, the combined effect of 30 separate lawsuits adds up to meaningful financial exposure. They have also argued that a company that licenses its brand name and benefits from the activity carried out under it has an ongoing responsibility to monitor that activity, including checking the licensee’s financial health, confirming that salaries are actually being paid, and putting contractual guarantees in place. In their view, that oversight was lacking in this case.
Corinthians has maintained publicly that its licensing agreement with CDS placed all financial, operational, and labour risk on CDS and that the agreement required CDS to reimburse the club for any liabilities that resulted from its operations.
Finally, in an official statement to ge.globo, Sport Club Corinthians Paulista reaffirmed that it would continue to pursue appropriate legal measures to defend its interests in labour claims and demand that CDS and any other parties found legally responsible fulfil their obligations and compensate the club for the damages caused. The club stated that it would not shirk its legal responsibilities, but would also not waive its right to hold accountable those whose actions had led to the situation. The Esports Radar will follow the story and provide updates as the case develops.
