The Portuguese superstar’s adidas World Cup winning bid for a new soccer stadium in Sao Paulo has been put at risk by the government, as a new ruling threatens to undermine the city’s plans to redevelop the site.
The ruling comes in response to a 2014 bid by Brazilian soccer authorities that included a commitment to use public funds for the project, which was expected to cost about $2 billion.
As part of that agreement, the city agreed to use the proceeds of the stadium’s sale for a public education program.
That agreement also requires that the public will pay $2 million for any environmental impact studies on the site, according to the latest ruling from the Federal Court of Justice (FCC).
The FCC rejected that agreement in October, citing the lack of an agreement between the city and Adidas on how the proceeds from the sale of the land would be used.
But it is unclear what impact the new ruling will have on the deal, which has been in the works for years.
As The Washington Post reported in October: The ruling, which is likely to have far-reaching implications for a bid that was the subject of intense bidding for years, could affect the entire soccer project.
In response to the ruling, Adidas told the Federal Chamber of Commerce that it will now “revisit the application for a stadium,” the Associated Press reported.
That will likely lead to a re-examination of the city-state agreement that was negotiated over the years.
In the interim, the company will be “in a position to prepare and finalize plans for the stadium,” it said.
The Federal Court said that the “reopening of the application will have a positive impact on the economic development in the city, including by encouraging development of the local community.”
It noted that the agreement also stipulated that the stadium will be open to the public.
Adidas’ decision comes as soccer in Brazil is on the decline, and Brazil’s economic growth rate has fallen to just 0.6 percent this year, the lowest since 2010.
The country has also been rocked by protests over the murder of police officers by protesters in the summer of 2018, as well as a series of violent protests in the lead up to the World Cup, which Brazil is hosting.