Globo waves to the League of Clubs and addresses the Mandating Law in an open letter – 08/23/2021 – Sports

Amidst the advance of the Mandating Law in Congress, Rede Globo published this Monday (23) an open letter to the 40 clubs in the A and B Series of the Brazilian Championship.

In the text, signed on behalf of the company’s media (TV Globo, SporTV, Premiere and the GE.com website), the station defends itself from criticism regarding the transfer of money to the clubs and praises the many years of broadcasting of Nacional.

“Some are trying to put us as opponents of you clubs”, says the text, before recalling the creation of the pay-per-view system, the creation of the Brazilian with 20 clubs in the format of running points (in 2003) and the last negotiation for television contracts, in 2019.

Between open and closed TV, the channel’s contract with the clubs pays R$1.1 billion per year.​

The document nods to the League of Clubs, created amidst the crisis of the CBF (Brazilian Football Confederation), opens possibilities for future negotiations, but reiterates the maintenance of clauses in the agreements signed before the change in the law regarding transmission.

“We want to take the opportunity to reinforce and register here our understanding that the change in legislation brought by the bill, already approved in the Chamber of Deputies, which gives the master team the arena rights, if that is the wish of you clubs, it could be one more 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.”

The bill was approved in the Chamber in July this year, after an agreement was reached between the deputies to insert guarantees to Rede Globo in its text.

In practice, if approved by the Senate and sanctioned by President Jair Bolsonaro, the law determines that the broadcaster that has a broadcasting contract with the home team can broadcast it even if it does not have it with the visiting team. A significant change from the current scenario.

Today, a company needs to have an agreement with the two teams to show the match. And it was based on this law that the current contracts (valid until 2024), both those of Globo and Turner, were made.

The risk for the Brazilian broadcaster was that competitors would buy the broadcasting rights of a few clubs to try to broadcast, for example, Flamengo matches as a visitor, as soon as the bill was approved in Brasília.

On TV, 13 clubs from the A Series of the Brazilian Championship have a contract with Rede Globo to air matches on SporTV: América-MG, Atlético-MG, Atlético-GO, Red Bull Bragantino, Chapecoense, Corinthians, Cuiabá, Flamengo, Fluminense, Grêmio, Internacional, São Paulo and Sport. The agreements are valid until 2024.

The other seven are linked to Turner (TNT and TNT Sports): Athletico, Bahia, Ceará, Fortaleza, Juventude, Palmeiras and Santos.

Under current legislation, Turner can only broadcast matches in which it holds the rights to both teams, a total of 42.

The biggest harm to Globo if the agreements signed before the change of law were not maintained would be to lose the exclusivity of transmissions from clubs like Flamengo and Corinthians, for example.

Without this legal protection, for example, Turner (if this division was maintained) would expand its transmission range to 133 games.

Today, Globo has an agreement with all the associations for open TV – for pay-per-view, only Athletico did not sign with the network. In other words, those games that have two contracts and that, therefore, cannot be shown on closed TV (Flamengo against Palmeiras, for example), can only be seen on Globo or Premiere – which drives subscriptions to the service.

The text passed in the Chamber guarantees that the new law will only apply to new contracts signed, guaranteeing the maintenance of the current ones as they were signed.

Read the letter in full:

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.

Sports greetings.

TV Globo, SportTV, Premiere and ge