Everyone wins with a more balanced division of money in football – 03/23/2023 – PVC

The president of Botafogo was Maurício Assumpção when Clube dos 13 split and Rede Globo negotiated TV rights individually with Corinthians and Flamengo. Values ​​have gone up a lot. Until 2010, the five clubs with the biggest crowd raised BRL 25 million a year, just BRL 7 million more than the group formed by Botafogo, Fluminense, Atlético-MG, Cruzeiro, Internacional and Grêmio.

Asked about the new agreement predicting that Botafogo would earn BRL 45 million, half of its biggest rival, Assumpção replied: “I cannot think about Flamengo. I have to understand the value with which Botafogo will be able to fulfill its objectives”.

Twelve years later, look at the gulf that has created between the two clubs. Although it happened more as a result of the good Red-Black administration x bad Alvinegra management, the distance from the TV contract helped to deepen the problem.

All the current discussion about the distance between the two proposals for Liga brings the same point. With an aggravating factor: the new agreement will be for fifty years. Liga Forte has 26 clubs, including Atlético-MG, Fluminense, Fortaleza and Internacional. Its assumptions are that the difference between those who earn more and those who earn less does not exceed 3.5 times.

Also, 20% of the money should be allocated to Série B.

On Tuesday (21), Libra, from Flamengo, Vasco, Botafogo, Grêmio, Cruzeiro and the big four of São Paulo, released a table in which the difference will be 3.4 times, but only when it reaches R$ 4 million revenue.

If this figure is not reached, Flamengo and Corinthians will maintain the current levels for five years. Wait a minute: but there is no contract signed from January 2025!

It is consensus that the two giants should have rights protected by a transition period. But five years can create irrecoverable distance.

There are some mysteries in this negotiation.

If Libra believes in its project, why does it doubt reaching R$ 4 million before five years?

Or why do Palmeiras and São Paulo consider it normal to receive BRL 100 million less than Flamengo and accept the five-year transition period?

One hypothesis is that you are not doing the math correctly. On ESPN, two weeks ago, Leila Pereira said that everything boils down to the vanity of leaders and that they try to reach the distance of 3.5%. Attention, it’s not a percentage, it’s a 3.5 times difference.

Last year, the rubro-negro raised around BRL 170 million, and Corinthians, BRL 130 million.

The values ​​exist because of a minimum right clause provided for in the contract. When that term was signed, the pay-per-view was imagined with BRL 600 million in revenue. Today there are around R$ 380 million. As Palmeiras earns R$ 70 million, the money is over. Everything else is completed by the owner of the television rights, who will no longer pay for this difference.

But why does Palmeiras think it’s normal to earn BRL 100 million less than Flamengo and BRL 60 million less than Corinthians?

Flamengo, Corinthians, Palmeiras and São Paulo will raise much more from other sources.

Germany divides common television money evenly. What unbalances is Bayern’s ability to raise money from other partners. It is possible that all the effort to divide the money does not balance the championship. But it is necessary to understand that everyone will win if the Brazilian maintains the balance.

You have to look at the tree. There are many people looking at the branch.

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