The 26 clubs that make up the LFF (Liga Futebol Forte) signed this Monday (6th) an agreement with the Brazilian manager Life Capital Partners and the North American Serengetti Asset Management for investment in the new league of clubs, to be formed in country from 2025.
The companies’ proposal is to pay BRL 4.85 billion to the 40 clubs that make up series A and B.
Another 18 teams formed the Brazilian Football League (Libra). The creators of this block are Corinthians, Palmeiras, São Paulo, Santos and Flamengo. This group received an offer of BRL 4.8 billion from another fund, Mubadala, for the first and second division tournaments.
In the case of Liga Futebol Forte, if 100% of the clubs in Series A and B do not agree with the offer from Life Capital and Serengetti, the amount will drop to R$ 2.3 billion.
The new competition can only come off the ground in 2025. Until 2024, the broadcasting rights contract on open, closed and pay-per-view TV belongs to Grupo Globo.
Since the beginning of conversations between the teams, the bet is that, in the future, there will be a composition of different investors for the assembly of the club league. So far this has not happened.
The main reason for the lack of an agreement is the division of money from broadcasting rights.
According to the agreement signed between the LFF, Life Partners and Serengetti teams, the money would be divided equally 45%, 30% for the championship classification (sports performance) and 25% for what is called “commercial appeal”. In no scenario would the difference be greater than 3.5 times between the club that would receive the most and the one that would be least entitled to contract resources.
According to Libra’s proposal, the division would be: 40% equally, 30% for performance and 30% for fan engagement, but only in case the revenue is up to R$ 4 billion. In case of higher value, there would be renegotiation. For LFF teams, this means that the division lacks objective criteria and deepens financial differences.
There is no prospect of a meeting for the time being between LFF and Libra representatives.
The following are part of the Strong Football League:
As a seasoned news journalist, I bring a wealth of experience to the field. I’ve worked with world-renowned news organizations, honing my skills as a writer and reporter. Currently, I write for the sports section at News Bulletin 247, where I bring a unique perspective to every story.