Libra changes proposal by league of clubs to seek union – 02/28/2023 – Sport

Libra approached the demands of the LFF (Liga Forte Futebol) in an attempt to reach a consensus for the league of clubs in Brazil. In an assembly held this Tuesday (28), at the headquarters of the FPF (Federação Paulista de Futebol), the teams decided to make changes in the division of the money to be generated by the Brazilian Championship from 2025.

The group agrees to place a maximum limit of 3.4 times for the difference between the team with the highest and lowest collection. It also changed the engagement criteria (one of the compensation items) to only take into account the average game audience.

These are two claims made by the LFF and which, in the understanding of Libra’s top haters, were stalling the negotiations.

After a transition period of five years, the 45-30-25 formula would also be reached, with 45% of the resources shared equally, 30% by the championship classification and 25% by the average audience.

Before this Tuesday, this 25% would be determined by an equation that would consider a survey of fans, pay-per-view, social networks and audience in stadiums. According to LFF club presidents, this is data that can be manipulated.

So far, the project for a league managed by the teams is divided into two blocks. Libra brings together 18 clubs that are currently competing in series A or B. The clubs with the biggest supporters in the country are in this entity: Flamengo, Corinthians, Palmeiras and São Paulo. The LFF encompasses another 26 from the three main divisions.

“There are more arguments for other clubs to join Libra. We will discuss again to get closer to what the LFF wants”, said the president of Palmeiras, Leila Pereira.

In new discussions, the representatives also promise to discuss another demand from Furte Futebol: removing the need for a unanimous vote to change the Libra statute. Leila Pereira said she was against the item and supports the change.

“It’s an opportunity that maybe we won’t have another one like it”, agreed the president of São Paulo, Julio Casares.

The two parties already have investors committed to contributing money to the league from 2025 onwards. Until 2024, the broadcasting rights belong to Grupo Globo. Libra closed an agreement with Mubadala, a fund from the United Arab Emirates, which would allocate BRL 4.8 billion in the two main divisions. LFF closed with North American Serengetti Asset Management for BRL 4.85 million.

But the two companies undertake to pay such an amount only if the agreement encompasses the 40 teams that make up the A and B series.

In addition to personal disagreements and antipathies between leaders, there is the component that one group does not trust what the other says. The LFF is wary of Libra’s promises that aren’t written into the bylaws. According to Casares, the distribution of money and the question of the 3.4 times would depend on “the market”. It would be linked to the amount collected for the teams.

The LFF wants the division guaranteed under any circumstances.

For Libra, Forte Futebol’s contract with Seregetti should be seen with suspicion because it would have several non-binding clauses. The fund would be obligated to invest only in accordance with certain circumstances. The LFF dismisses this claim.

A next dispute may take place regarding the money to be received by each association during the five years of transition. LFF does not accept that the status quo is maintained during this period. Flamengo and Corinthians are the ones that collect the most through the pay-per-view service, for example.

Libra proposes that between 2025 and 2029 no club will receive less than the amount forecast for 2024. Among them, the minimum pay-per-view guarantee. The same Flamengo and Corinthians, in 2024, can pocket R$ 200 million.

The LFF agrees with not reducing earnings during these transition years, but wants to exclude past performance and the minimum pay-per-view guarantee from the account.

“I believe that we can put everyone under the same umbrella”, defines the president of Grêmio, Alberto Guerra.

He is one of the top hats of a Libra commission that will negotiate with the LFF. He does not rule out even a composition between the two investors, something that is not well seen by other presidents.

If there is no agreement by 2024, the highest probability is that there will be two TV rights negotiation blocks, without a broadcaster with the rights to all matches.

SEE THE 18 CLUBS THAT ARE PART OF LIBRA:

Bahia, Botafogo, Corinthians, Cruzeiro, Flamengo, Grêmio, Guarani, Ituano, Mirassol, Novorizontino, Palmeiras, Ponte Preta, Red Bull Bragantino, Sampaio Corrêa, Santos, São Paulo, Vasco and Vitória.

SEE THE 26 CLUBS THAT ARE PART OF THE LFF:

ABC (RN), Athletico, Atlético Mineiro, América-MG, Atlético Goianiense, Avai (SC), Brusque (SC), Chapecoense (SC), Coritiba (PR), Ceará, Criciúma (SC), CRB (AL), CSA (AL), Cuiabá (MT), Figueirense (SC), Fluminense (RJ), Fortaleza (CE), Goiás (GO), Internacional (RS), Juventude (RS), Londrina (PR), Nautical (PE), Worker (PR), Sport (PE), Vila Nova (GO) and Tombense.