Brazilian Courts Hold Corinthians Liable for Esports Licensee’s Unpaid Wages

Brazilian labor courts have held Sport Club Corinthians Paulista subsidiarily liable for unpaid wages owed to players and staff of its former esports teams, according to a survey by ge.globo published Oct. 26. The club had licensed its esports operation to CDS E-Sports e Entretenimento Ltda., which was contractually responsible for paying them.

ge found 30 labor lawsuits against Corinthians and CDS. Thirteen have reached a decision: seven at first instance and six on appeal. In 10 of those, Corinthians was held subsidiarily liable alongside CDS. All three rulings in the club's favor came at first instance. The other 17 cases have no ruling yet.

The suits total more than R$2.8 million ($524,000), according to ge. That is the value claimants assigned when filing, not a judgment. Amounts owed will be set case by case in enforcement proceedings, with monetary correction and interest added.

Corinthians licensed its brand to CDS from July 2022. CDS later ran rosters in Free Fire, Valorant, League of Legends and eFootball. In July 2025, fan outlet Meu Timão reported salary delays. CDS President Milson Januário told the outlet that roughly R$300,000 ($56,000) in monthly payroll was outstanding and that he expected to clear the backlog within 60 days. Corinthians declared the CDS contracts terminated on Aug. 27, 2025, according to the club.

Judge Jane Granzoto Torres da Silva, in an appellate decision in a former player's case, found that Corinthians had contracted a company "without the capacity to honor its labor commitments" and therefore had to answer subsidiarily for the workers' rights. In that case, a provisional calculation set the claim at R$85,455.74 ($16,000). CDS did not pay and had no seizable assets, so the claim was redirected to Corinthians, ge reported.

Corinthians said in a statement to ge that CDS had expressly assumed all labor costs and risks and was obliged to indemnify the club. The club said a court finding of subsidiary liability "does not remove the contractual responsibility of the managing company." Januário did not respond to ge.