See locks to the League agreement after concessions from Flamengo and Corinthians

Libra (Liga de Clubes dos Brasil) has approved a new formula for splitting TV money for a future league. The new format involved concessions from all clubs, but mainly from Corinthians and Flamengo, which have the highest ppv revenues. Liga Forte Futebol, however, pointed out its requirements that are not included in the model of the other league.

Libra has among its clubs Corinthians, Santos, São Paulo, Palmeiras, Flamengo, Vasco, Botafogo, Cruzeiro, Grêmio and Bahia, among others. The LFF already has Inter, Fluminense, Atlético-MG, Fortaleza, in addition to 24 other teams. Only an agreement between both (or their clubs) will make possible the unique Liga do Brasileiro.

Libra’s new formula has a difference of 3.4 times between the team that earns the most and the one that earns the least, a model that will be valid in five years or when total revenue reaches R$ 4 billion. Meanwhile, there is a transition rule of 3.9 times maximum difference between the top and bottom of the pyramid.

After the new formula, a note from Liga Forte Futebol pointed out four points that it understands as “basic premises? to join the League. The first of them is that the ceiling of the difference is 3.5 times right away. .

Second, the Libra model predicts 15% of money destined for Série B. The estimate is that, in an ideal world, this represents R$ 600 million, which would be almost triple the current Premiership revenue. The LFF, however, requires that the percentage for Series B and C be 20% of the total pie.

Third, the Libra model predicts that all clubs will maintain the same level of current earnings with no loss in absolute value. It is a measure to serve Corinthians, Flamengo and Palmeiras, which, according to people from Libra, made concessions. These clubs, which currently have minimum guarantees of value to be received in ppv.

In its note, the LFF states that the minimum guarantee “cannot be maintained as a reference for any revenue guarantee from 2025”. That is, Corinthians, Flamengo and Palmeiras would have to accept a possible reduction in their current earnings in the new League.

This point is perhaps the biggest obstacle. Clubs will hardly give up having the guarantee of the current value, according to Libra.

Fourth, Libra has not yet changed its statute, which provides that important decisions will only be taken unanimously. The pledge is a proposal to move to the 85% percentage of clubs to change rules. The LFF wants a 2/3 vote as a need for change.

On the LFF side, the four premises are seen as immutable clauses, that is, there is no way to give them up. On Libra’s side, there is an understanding that if there are conditions that cannot be changed, there is no way there can be an open negotiation. Hence, there is pessimism in Libra in a deal.

Either way, there’s a chance the two groups will get back together after a long hiatus. Libra created a commission to talk with the LFF, and the latter declared that it was open to dialogue. It’s no small thing they have to negotiate.