Uncertainty about contract with Brax creates new crisis with CBF

Presented by the Brazilian Football Confederation (CBF) in 2023 as an important victory for its commercial area, the entity’s contract with the company Brax for the rights to broadcast Series B of the Brazilian Championship for a period of four years, from 2023 to 2026, is at risk of being broken in 2024.

The sports marketing company, responsible for financing the broadcast of the games on open TV by Band, warned the CBF that it should not honor the agreement, on the grounds that the tournament is commercially unprofitable. The contract foresees the payment of R$210 million for the first year, to be divided equally between the clubs. The value is readjusted every year. For 2024, the figure is R$231 million.

In 2023, Brax would have already stopped making payments to some of the 20 clubs in the Second Division. According to information from columnist Flávio Ricco, confirmed by Folha, the CBF itself had to take money out of its cash register so as not to harm the teams. The same could happen this season.

When contacted, the highest authority in Brazilian football said it had nothing to comment on the matter. Brax also did not comment.

People involved in the negotiations, however, confirmed the existence of the problem to the report. The impasse could leave the competition without broadcasts on open TV this year, in which Series B will have Santos as its main attraction.

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Relegated for the first time in its history last season, the Vila Belmiro team has not yet decided on the sale of its TV rights for this year. The club has two options: activate a pay-per-view clause, maintaining its current contract with Grupo Globo, through which it would receive 3.1% of the amount allocated to the clubs that are part of this collective contract; or negotiate directly with Brax.

In both hypotheses, Santos estimates that it could raise similar amounts, between R$11 million and R$12 million.

The commercial model adopted by Brax, however, is different from that practiced by Grupo Globo, which buys the rights and broadcasts the competition. In the case of the sports marketing company, after signing the contract, it looks for a commercial partner for broadcasting, with which it shares revenues, such as sponsorships and naming rights for the championship.

In 2023, the Second Division was shown by Band, on open TV, and by Sportv, on closed TV. There is still no definition for this year’s broadcasts. If it cannot count on Santos in its package, Brax runs the risk of dragging this definition out even further. Hence the attempt to break the agreement.

When contacted by the report, Band stated that it does not comment on the matter.