The Brazilian government declared Thursday making the first decisive move in the "renaissance" of football in the soccer-mad country, where the national side's World Cup humiliation on home soil still rankles eight months on.

President Dilma Rousseff presented a bill to restructure the $1.2 billion in debt the country's football clubs owe the state -- the measure would let them renegotiate for repayment periods of up to 20 years.

Sports Minister George Hilton said the legislation was meant to address the problems laid bare by Brazil's 7-1 hammering by Germany in the World Cup semi-final last July.

The rout was "an eloquent signal that something is wrong in Brazilian football," he said at a ceremony where the bill was unveiled.

"This is a historic day because it is the inauguration of a renaissance for football."

Under the bill, clubs that sign up to renegotiate their debts would have to promise to meet certain requirements, such as publishing independently audited financial results, paying their taxes on time and spending at least 30 percent of gross earnings on parts of the club such as their youth and women's teams.

They would also have to present plans to balance their books by 2021.

Those failing to keep to the pledges will be penalized, including by relegation, Rousseff said.

Brazil have won the World Cup five times and the passion for football in the country is legendary.

But the domestic league has struggled in recent years, clubs accumulating massive debts as poor financial management exacerbated the effects of the country's economic slowdown.

"It's not just about the rout in the semifinal against Germany in July, which will mark our history forever. It's mainly about the dire situation of our football clubs," said Rousseff.

"We are going to work to transform our clubs into great profitable enterprises, with the capacity to turn out professional players," added the president, chastising Brazilian clubs for exporting their best talent overseas.

"Unfortunately our country exports the artists, while other countries export the show," she said, adding that the bill would improve the clubs' financial management, investment capacity and use of technology.

"The future of our football depends on passing this legislation," she said.