Corinthians could face $520,000 esports exposure

The R$2.8 million total represents the value of claims identified so far, not a final amount owed by Corinthians. The club’s liability will be determined in each case through enforcement proceedings and appeals. Interest and inflation may change the amounts.

Former players and staff filed the lawsuits against Corinthians and CDS E-Sports e Entretenimento Ltda., the company that operated the teams. Seventeen cases remain pending.

Corinthians licensed its brand to CDS in July 2022. Under the agreement, CDS hired players and staff, paid salaries and covered labor and operating costs for teams competing in Free Fire, Counter-Strike 2 and VALORANT.

Reports of unpaid salaries and poor working conditions emerged in 2024 and 2025. Some teams were excluded from competitions because of the disputes. Corinthians ended its agreement with CDS in late August 2025 after sending formal notices and attempting to renegotiate the contract. The club then said it no longer had an official esports team.

The employment contracts were signed with CDS, but labor courts held Corinthians responsible under the principle of subsidiary liability. Under that principle, a company that benefited from workers’ services may have to pay if the employer fails to settle the debt.

In the decided cases, courts found that players and staff worked under the Corinthians name and used the club’s branding, structure and identity. The courts treated that connection as evidence that Corinthians benefited from their work.

Lawyers for the former players and staff argued that a brand owner benefiting from a licensed operation should monitor the licensee’s finances, confirm salary payments and create safeguards for labor obligations. They argued that such oversight was insufficient.

Corinthians maintained that its agreement with CDS separated the club from employment responsibilities and assigned financial, operational and labor risks to the esports company. The contract required CDS to reimburse the club for liabilities resulting from its operations.

In a statement, Corinthians said it would continue legal efforts to defend its interests in the cases. The club said it would seek to ensure that CDS and any other legally responsible parties meet their obligations and compensate Corinthians for resulting losses.