The main news outlets seem to give very prominent coverage to the Olympics - even displacing COVID sections to lower on the page for the first time since the Presidential elections earlier in the year. TV coverage is not helped by the way the rights in Europe were primarily sold to commercial channels, meaning the main channels (not just in Portugal) have limited content they can show live.
However, compared to many countries (including where many of us come from), Portugal has a smaller delegation covering/progressing in fewer sports, so this perhaps reduces expectations, excitement, etc. compared with countries expecting to win large numbers of medals.
I would agree that I don't see street/waste land football much here - but then every community has some kind of facility (small villages may only have a dusty pitch, but small towns often have surprisingly good sports facilities, with, for instance, multisport halls and swimming pools that would not generally be found in communities of equivalent size in the UK) and amateur sport seems quite well organised, well frequented and affordable. The children of our Portuguese friends are all involved in a club (usually, several) for sports and/or outdoor activities. So, I wonder if the limited street sport is due to this, rather than a lack of participation.
In my local area, the local and regional sports coverage (including people representing Portugal) present weekly in the local press and on Facebook regional news, includes rugby, trialthon, cycling, rowing, swimming, trampolining... as well as football. People do night-running, day running and cycling visibly here; and people of all ages cross the city daily in a variety of sportswear. There are busy multi-purpose courts in many suburbs, quiet by day at this time of the year due to the heat, but busy long into the evening.
I think there is perhaps a different sport culture and approach here - but lack of interest is not my experience, at least in my area.