This week, the courts ruled that part of the profits from the Latin America Open international tournament, which will take place at the Jockey Club in São Paulo, should be used to pay off a debt related to the Service Tax (ISS).
The amount in question could reach R$ 26,500; however, the entity can still appeal.
Why might this happen?
This comes amid growing problems between the Jockey Club and the São Paulo City Hall over the past three years.
The tension reached its peak when a law prohibiting horse racing with betting was passed, but the measure was eventually suspended by the courts.
According to the City Hall, the Jockey Club has accumulated R$ 800 million in municipal tax debts, which are being collected through various legal proceedings.
The current ruling stems from a lawsuit filed in 2022. The entity, however, disputes the figures presented and the application of tax regulations.
What has been happening between the City Hall and the Jockey Club?
Mayor Ricardo Nunes (MDB) has repeatedly reiterated his intention to transform the area into a park, a project included in the Master Plan since 2023.
At the end of last year, the site was the target of a Parliamentary Commission of Inquiry (CPI) in the City Council, created to investigate the alleged misuse of millions of dollars earmarked for the restoration of the headquarters, listed as a cultural heritage site, for other expenses.
At the time, the organization stated that there were no irregularities.
“All requested information regarding expenses for the preservation, maintenance, and conservation of the listed Hipódromo Cidade Jardim complex has already been duly provided to the Department of Historical Heritage (DPH) of the Municipal Secretariat of Culture of the capital city’s City Hall,” the Jockey Club stated in a note.
Furthermore, the then-president of the Chamber, Milton Leite (União Brasil), stated that he would, along with the police, close the place. Moreover, Leite requested that owners remove their horses from the area.
According to the Jockey Club, the conflicts with the City Hall are due to real estate “pressure” in the Cidade Jardim neighborhood, an upscale area in the southern part of São Paulo, where the organization has been located since 1941.
Impact on the Latin America Open
Amid the conflicts, it was determined that the tournament organizers must deposit the seized amount into a court account, in addition to presenting the contract signed with the Jockey Club.
The decision also highlights that the measure does not compromise the event’s realization. “It will be organized entirely by a third party, with the defendant only responsible for providing the physical space,” stated the magistrate.
