MIÉ 24 DE ABRIL DE 2024 - 18:17hs.
Rodrigo Mattos (UOL) blog’s information

Football clubs’ contract with Globo for Brazilian championship included betting operation

A renegotiation of the contracts between football clubs and media giant Globo for the Brazilian championship included some properties like the exploration of transmission in betting websites. The talks, which took place at the end of last year and in early 2019, aimed to detail the agreements made in 2016 for open TV and pay-per-view content. Thus, there were requests from the clubs and the broadcaster until arriving at a final format, according to exclusive information of Rodrigo Mattos blog at UOL.

The blog found that football clubs and Globo signed in that first negotiation a simpler document with few pages. There was the commitment to sell rights to open TV and pay-per-view, in some cases, with a division of money already established.

With the proximity of the 2019 Brazilian championship in which the contracts were worth, the parties discussed the detailed terms, guarantees and values. Then, Globo asked for the inclusion of points such as greater detailing of the game Cartola FC and the possibility of streaming via pay-per-view.

In this context, Globo demanded the inclusion of games broadcast in betting websites. It would also be a way of ensuring that another company did not exploit this property because that would hurt the company’s exclusive rights.

Sports betting is approved in Brazil after a change in legislation but is not yet regulated. Thus, Globo still cannot explore the property. There is no clear strategy of what Globo intends to do with these rights, if it is going to launch a website for example.

On the part of the clubs, there was a demand to improve the flow of payments of the broadcaster. That's because almost all of the installments were concentrated in the second half of the year when pay-per-view, with position and exhibition awards are received. Globo increased payments in the first half to evaluate the club's cash flow.

Not all clubs have signed equal agreements related with bets and other items. But most have already agreed the terms of the contracts with the broadcaster, according to the blog. Another renegotiated issue was the withdrawal of a minimum guarantee of ppv to certain clubs in exchange for Globo giving endorsement for loans, as well as discussions on subscriber’s package research that determines the distribution of money.

Subsequent negotiations of broadcast contracts whose basis was agreed years earlier are normal. This happened also in the Libertadores Cup (the South American Champion League). To accept the inclusion of new items, the clubs that were tougher in the negotiations called for counterparts, and some accepted it.

The discussion of the inclusion of the possibility of using the images for bets was also discussed in the sale of the Brazilian's international rights, in a competition made by the Brazilian Football Confederation (CBF). Initially, the clubs excluded this possibility following a proposal from the Prudent fund. Then the winning company Sport Promotion tried to push this into the agreement with CBF's support. In the end, the bidding process failed.

The rights do not coincide with those of Globo as they would only be exploited on sites outside the country, and there are mechanisms to block videos by regions.

Source: GMB / UOL