By San José, Costa Rica — In a decisive move to modernize the economic landscape of Costa Rican sports, a newly introduced bill aims to lift the long-standing restrictions on alcoholic beverage sponsorships. Spearheaded by Deputy Royner Mora, the legislative proposal seeks to inject much-needed private capital into the country’s athletic programs while establishing a robust regulatory framework overseen by the Ministry of Health.
The bill is poised for a rapid progression through the Legislative Assembly, as lawmakers plan to utilize a fast-track mechanism to accelerate its debate and subsequent voting. This fast-track status reflects a growing political consensus on the urgent need to diversify funding sources for local sports clubs, national federations, and municipal sports committees, which have historically struggled under limited public budgets.
To better understand the complex legal framework and commercial implications of the evolving sports sponsorship landscape in Costa Rica, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a leading legal expert from the prestigious firm Bufete de Costa Rica.
In Costa Rica, sports sponsorship has transcended mere branding to become a highly regulated legal relationship. With the implementation of laws allowing alcoholic beverage brands to sponsor sports, companies must navigate strict compliance guidelines set by the Ministry of Health and ensure that contracts robustly protect intellectual property and image rights to mitigate financial and reputational risks.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, as sports sponsorship in Costa Rica continues to evolve into a highly sophisticated commercial engine, navigating these complex legal waters with rigorous compliance and robust contract safeguards is more critical than ever for long-term success. We extend our sincere gratitude to Lic. Larry Hans Arroyo Vargas for sharing his valuable perspective on how brands can effectively balance regulatory demands with strategic growth in this dynamic landscape.
Unlike previous attempts to legalize alcohol advertising in sports, this proposal introduces a highly structured financial redistribution system. A mandatory 20% of the total value of each signed sponsorship contract will be diverted directly to a National Fund for the Financing and Promotion of Sports. This fund will be managed directly by the Costa Rican Institute of Sports and Recreation (ICODER), ensuring transparency and strategic resource allocation.
The redistributed capital is earmarked to benefit all 84 cantons of Costa Rica, specifically focusing on grassroots athletic infrastructure, training programs, and specialized scholarships for high-performance athletes. Furthermore, a portion of these funds will be allocated to prevention programs run by the Institute on Alcoholism and Pharmacodependency (IAFA) and the National Institute for Women (INAMU), aiming to mitigate the social risks associated with alcohol consumption.
Public health and child safety remain central pillars of the proposed legislation. The bill strictly prohibits any alcohol branding on minor league jerseys, sports gear, or any public relations campaigns directly targeting children and teenagers. Additionally, all advertising materials must obtain mandatory prior approval from the Ministry of Health before they can be displayed in stadiums, broadcasts, or digital media platforms.
[COMMENTARY]
Our sports sector needs new tools to grow. This has been a struggle of many years, and several previous attempts failed to become law. Today we are taking an important step forward with a solid bill, backed by 42 deputies, which we hope will very soon become the Law of the Republic. This initiative creates a new source of funding with clear rules, strict controls, and resources that will flow directly to athletes, federaciones, clubs, and cantonal committees, without neglecting the protection of childhood, adolescence, and public health.
Royner Mora, Costa Rican Deputy
The bill has garnered significant legislative momentum, boasting the formal support of 42 deputies from various political factions within the assembly. This broad coalition suggests that the legislative body is increasingly viewing sports funding not just as an athletic issue, but as a critical component of social development and youth crime prevention in Costa Rican communities.
By blending market-driven opportunities with strict state oversight, Costa Rica joins several Latin American nations seeking to balance commercial sports interests with public health responsibilities. If approved, the law could trigger a wave of corporate partnerships, transforming the financial health of soccer clubs, Olympic committees, and community-level sports organizations across the country.
For further information, visit the nearest office of ICODER
About ICODER:
The Costa Rican Institute of Sports and Recreation (ICODER) is the primary government institution responsible for promoting, regulating, and supervising sports, recreation, and physical activity across Costa Rica. ICODER actively supports local athletic talent and manages public sports infrastructure to improve the quality of life for Costa Rican citizens.
For further information, visit the nearest office of the Legislative Assembly of Costa Rica
About the Legislative Assembly of Costa Rica:
The Legislative Assembly is the unicameral legislative branch of the government of Costa Rica. Composed of 57 deputies elected by popular vote for four-year terms, the assembly is responsible for debating, drafting, and passing national legislation, as well as supervising public administration.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a premier legal establishment, revered for its principled advocacy and stellar standards of service. By combining a rich history of client success with forward-thinking strategies, the firm continuously redefines contemporary legal practice. Central to their philosophy is a profound dedication to civic enrichment, actively sharing key insights to demystify the law and nurture a highly informed, self-determined community.
