Libra wants league to preserve money from Corinthians and Fla – 03/21/2023 – Sport

In a document released this Tuesday (21), Libra (Brazilian Football League) reaffirmed its criteria for revenue sharing in the new club league, yet to be made official. The proposal would come into force from 2025.

Libra brings together 18 teams from Series A and B of the current Brazilian Championship, including those with the biggest crowds in the country, such as Flamengo and Corinthians.

The offer contains a stability clause that prevents the loss of revenue from these two teams, which are capable, in theory, of obtaining greater audiences in their broadcast games. This guarantees that, in the period considered transitional (the first five years of the league’s formation), both associations will have their collection maintained in relation to transmission rights in 2022.

The current transmission contract, signed with Grupo Globo, ends in 2024.

This was a clause already expected by the LFF (Liga Forte Futebol), which brings together 26 teams from the three main Brazilian divisions and who are reluctant to adhere to the model presented by Libra. leaders told the Sheet that this stability clause is one of the items presented that help preserve the current status quo, in which some clubs collect much more than others.

Libra presidents counter that it is a fair model and that, over time, it will meet LFF’s main wish: the team that collects the most will be entitled to a maximum of 3.5 times more in relation to the one that receives the least.

Forte Futebol’s assessment is that, only with the pay-per-view, in 2024, Flamengo and Corinthians should raise more than R$ 200 million, a value that should be more than R$ 100 million higher than that of Palmeiras and São Paulo , for example.

Libra’s plan was drawn up by BTG Pactual and Codajas Sports Kapital, responsible for the advisory and who managed to get an offer of BRL 4.8 billion from Mubadala Capital, linked to the sovereign fund controlled by the royal family of the United Arab Emirates. LFF claims to have an offer from North American Serengetti Asset Management for BRL 4.85 billion.

In the fight for narratives, the LFF claims that Mubadala accepts to pay only if it has the 40 teams from the two main divisions under contract, which does not currently happen. Libra says that the document presented by Serengetti to the LFF has a series of non-binding clauses, in which the investment fund would not be obliged to pay. Both parties deny the information.

If Forte Futebol does not have the 40 teams, the money to be divided would drop to R$2.3 billion.

In conversations between leaders of the two groups, the explanation for preserving the values ​​of Flamengo and Corinthians, on the part of Libra, was that it was the only way to make the proposal work and bring it closer to what the LFF wants. The two teams, especially Rio de Janeiro, did not accept loss of income.

Under Libra’s bylaws, any changes must be unanimously approved. This gives any team the ability to veto any submitted proposal.

According to the text released by the entity, the preservation of values, called “stability clause” aims to protect the clubs that “make greater concessions in the formation of the league.”

In apportionment of revenues, Libra proposes 40% of the money divided equally, 30% by performance (the classification in the Brazilian Championship by the average of the three previous years) and 30% by the audience in the transition period. After that, the split would be 45-30-25. This is the percentage requested by the LFF. Futebol Forte wants the apportionment by performance to take into account only the championship played at that time.

In the division between the different divisions, Libra wants to give 85% of the collected to the teams of Série B and 15% to those of B. At LFF it proposes 80% for the elite, 18% for the second and 2% for the third.

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.