Inspired by the LaLiga model and with an equal division of international television rights, the investment banking area of XP presented its proposal for the new league of clubs in Brazil.
The meeting took place this Tuesday (15) and was attended by presidents or representatives of 35 associations. Among the main players in the country, the only absence was Palmeiras.
According to the XP proposal shown to the top hats, national TV rights would be divided 50% equally among the 20 teams in Serie A, 25% distributed by performance in the championship and 25% by exposure and audience of the games.
Exposure is a variable yet to be defined “with parameters such as audience, occupancy in stadiums, etc”, says the text shown at the meeting.
This is a novelty because in the current television contract with Grupo Globo, in addition to the division having an equal share and another based on the final classification, there is also a percentage based on the number of matches broadcast. This is on open and closed TV, excluding pay-per-view, which has its own rules.
The formula presented by XP copies the one applied in the Spanish Championship. Javier Tebas, president of LaLiga, the organization that organizes the Spanish league, attended the meeting.
The internationalization of Brazilian broadcasts is one of XP’s stated goals with the proposal. For sales abroad, the offer is for the money to be divided equally. In that sense, it copies what is used by the Premier League, the Premier League.
During the conversations, XP and Tebas’ concern was to show that the creation of the club league is not a short-term check for club presidents. This is a long-term expansion project. Something that can bring great and continuous benefits.
“The market has never been as opportune as it is today. Investor interest has never been so high. The league’s business in Brazilian football is a big topic. No investor will refrain from it. The dynamics of the entertainment industry favors the league’s appreciation.” , said Guilherme Ávila, responsible for the sports division of XP’s investment bank.
The current television contract with Grupo Globo ends only in 2024. All possible talks are for an agreement that would take effect in 2025 and, for the investment bank, negotiations should already be underway. Executives are now waiting for managers to talk to each other and say what they expect from the possible league.
“It has a short-term investment window. We are in a round of conversations about broadcasting rights. It is the great asset of this product [a liga] from 2025. If you want any kind of upside [lado positivo], should organize themselves now. These guys [os dirigentes] should be sitting today [terça] in the afternoon, among them, to define a model that they will bring to the table [de negociação]”, completes Avila.
The investment bank’s discourse for clubs is the need to start exporting the championship, not players.
“[Para isso, é preciso] A centralization of these negotiations and a model that will not be created. A model that worked outside Brazil will be replicated, especially in European leagues. Brazil doesn’t have to invent the wheel,” he told sheet the head of XP’s investment bank, Pedro Mesquita, last month.
He says there are already negotiations with investors. The model chosen was the one applied by LaLiga.
During the meeting, Tebas spoke to the directors about the need to structure and elaborate the product based on the Spanish experience.
consulted by sheetPalmeiras, who did not attend the meeting, said he was “in favor of the league, he believes this is an important step for Brazilian football, but he saw no need to send a representative to this event”.
I have worked in the news industry for over 10 years. I have a vast amount of experience in covering health news. I am also an author at News Bulletin 247. I am highly experienced and knowledgeable in this field. I am a hard worker and always deliver quality work. I am a reliable source of information and always provide accurate information.
