Clubs criticize rule change in Libra statute that benefits those who already earn more

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A proposal to change the transition rule provided for in the statute of creation of Libra, which would benefit Flamengo and Corinthians, has been a reason for an impasse in negotiations with representatives of the Futebol Forte group and other teams from Series A and B of Brazilian football that still did not join the new club league.

THE Sheet had access to two versions of documents that detail the transition time for the implementation of the revenue distribution formula such as broadcasting rights and sponsorship quotas.

The initial version of the text, presented to the teams at the beginning of the month, provided for a three-year transition period, during which “all clubs that compete in the first division of the championship organized by Libra will be assured of receiving revenue at least equivalent to the average of the last 3 years, of the media revenue earned by the club in the Brazilian Championship”.

A new formulation of this passage provides that the period cited would be five years. The report found that, in the understanding of clubs that have not yet joined Libra, the change would perpetuate for longer the imbalance that currently exists in the distribution of revenues. The change caused discomfort, even in clubs that have already closed with Libra.

Any change to the bylaws must be unanimously approved by the league members at the assembly.

​Club officials who negotiate entry into the league heard by the Sheet said that this would mainly favor Flamengo and Corinthians, especially because these clubs have a fixed amount guaranteed in the current TV contract with Globo, which expires in 2024.​

One of the top hats said the change goes against the talk that the league will equalize revenue distribution. And it not only maintains but increases the imbalance.

In addition to Corinthians and Flamengo, Palmeiras, Santos, São Paulo, Red Bull Bragantino, Ponte Preta, Vasco and Botafogo are the current signatories of Libra.

Officials of the nine who signed the document allege that the rule was changed to five years because it would be the same time as a TV contract cycle. They already anticipated that this would generate discontent, but decided to go ahead.

In the statute, the transition rule would be in effect during 2025, 2026, 2027, 2028 and 2029.

Another top hat also mentioned that the passage of the text regarding the transition rule is part of the premises for the foundation of the league and that, in the future, they would still need to be unanimously approved in assembly.

Since the first meeting, they have been insisting that, at this moment, the most important thing is to create a fact, which would be the announcement of the league’s formal existence, and then discuss details of the statute.

Representatives of the Futebol Forte group and other teams in Series A and B, on the other hand, want to resolve all pending issues before signing any document.

At the beginning of the week, in a meeting held in Rio de Janeiro, they defined a new proposal to join Libra.

At the meeting, they mainly dealt with the division of all the money that will be raised by the league with television rights, sponsorship quotas and other income.

The 25 teams that came together defined a model in the 45-30-25 format. In this case, 45% of everything collected would be divided equally, 30% according to the final classification and 25% within an equation that considers media exposure.

The proposal is signed by the following clubs: América-MG, Atlético-GO, Avai, Ceará, Athletico-PR, Atlético-MG, Coritiba, Cuiabá, Juventude, Fluminense, Fortaleza, Goiás, Internacional, Chapecoense, Brusque, CSA, CRB, Náutico, Criciúma, Guarani, Londrina, Operário, Sampaio Corrêa, Sport and Vila Nova.

These clubs also show concern about one of the aspects that will be part of the calculation to arrive at the 25% division regarding media exposure.

According to the statute, the equation will have five pillars: average attendance in the stadiums; subscriber base of each of the clubs in the streaming packages referring to the championship organized by Libra; number of accumulated followers and engagement in the five main social networks; audience on open TV; and twist size.

The inclusion of engagement on social networks, however, worries clubs that have not yet joined Libra, as it is an aspect susceptible to manipulation, such as buying followers, for example.

On the side of the clubs that signed with Libra, there is resistance to giving up the 40-30-30 model, similar to the current agreement with Grupo Globo.

However, there is already a movement, too, for the search for a consensus on the subject to move forward from this phase and start negotiations for the definitive creation of the league.

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