TV Globo sends an open letter to clubs competing in the Brazilian Championship of series A and B to talk about the “law of the principal”. In the text, the station highlights the ‘historic’ partnership it has had with the teams since the 70s and reinforces that “the right to the arena, the so-called “principal’s law“, could be an important step in the evolution of football in the country.”
O Bill No. 2336/2021, the so-called Principal Law gives clubs that play at home the right to negotiate the transmission of the match. The law modifies the scheme that we have seen for years, which is TV Globo that owns football games, especially the series A and B of the Brazilian Championship.
Also in the text, Globo is in favor of the new Mandating Law, but “provided that the contracts already signed are respected, in favor of the legal security of the entire system”. In the current model, contracts are valid until 2024.
Read the full letter:
To the 40 clubs from Serie A and B of the 2021 Brazilian Soccer Championship,
In recent months there has been a lot of talk about Globo’s relationship with football. Some try to set us up as opponents of you clubs. In nearly five decades of partnership and investments, we are sure that our paths converged and had a common goal: strong and balanced football for the fans. As in any partnership, there were differences that were resolved with dialogue and negotiation, without losing focus on the objective of strengthening the greatest national passion.
We cannot fail to remember this story, which was dedicated to valuing the sport that is the passion of all of us. Since the 70s, Globo broadcasts the competitions of Brazilian football clubs. In the 90’s we helped organize the calendar and standardize the dispute system for national competitions. In 1997 we created with you the PPV for national football, of which we are partners. In 2003 the current formula for the Brazilian Championship was created, with the running points system and, more recently, as of 2019, we have built together a new fairer and more balanced model for sharing the revenue of broadcast rights, following the experiences of success of European football leagues. These are a few important examples of our joint trajectory.
We believe a lot in Brazilian football and, therefore, we never spared efforts to develop it as a profitable business for all parties. We allocate billions of reais to broadcasting rights every year. Apart from the high investment in promoting competitions, in hiring the best professionals to broadcast and cover the games, and in the implementation of state-of-the-art technology to deliver high-quality broadcasts to fans on various platforms. No other company invests so much, and with such consistency, in national football. Our hope is expanded in this new moment in which football points to greater union between clubs, something that we believe is fundamental for the best development of the Brazilian Championship.
We would like to take this opportunity to reinforce and register here our understanding that the change in legislation brought about by the bill, already approved in the Chamber of Deputies, which gives the master team the arena rights, if that is your clubs’ desire, could be more a step in this evolution. An advance on the path of giving more autonomy and flexibility, as long as the contracts already signed are respected, in favor of the legal security of the entire system. We even support clubs’ collective bargaining for their broadcasting rights, as occurs in the world’s major leagues (even in countries that adopt the home rights system in legislation) to ensure that clubs are able to maximize their earnings, without causing market imbalance .
Regardless of the negotiation model, Globo will maintain its historic partnership with clubs, their Federations and with Brazilian football, contributing to the development of the entire market and to the enhancement of the show. Who wins are the fans of each one of you, passionate about football, just like us.
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