Clube dos 13, the organisation which represents the 20 soccer teams participating in the Brasileirão, has announced a controversial US$933 million broadcast deal with Brazilian television network Rede TV!.

The agreement grants Rede TV! the domestic television rights for Brazil’s highest tier of professional soccer until the end of the 2014 season and represents a US$34.3 million increase on the league’s existing deal with Rede Globo which expires at the end of this season.

Clube dos 13′s arrangement with Rede TV only covers free-to-air television broadcast and does not include internet, mobile or international rights.

Despite having agreed terms with Rede TV!, the only company involved in the tender process, the deal is only likely to go ahead if Clube dos 13 can convince all of the league’s participating clubs, many of whom are already in advanced negotiations with separate broadcasters.

In February 2011, one of Brazil’s most popular teams, Corinthians, left Clube dos 13 following differing viewpoints on the division of broadcast rights with marketing vice president Luis Paulo Rosenberg insiting more revenue could be generated by negotiating contracts individually.

“We can double our broadcast revenue. Our benchmark is Barcelona, not Atletico Madrid,” said Rosenberg in a recent interview.

La Liga clubs Real Madrid and Barcelona are consistently the highest earning clubs in world soccer, a fact that is largely to do with the Spanish teams’ individual broadcast deals with multimedia communications group Mediapro.

According to the Delotte Football Money League 2011, Real Madrid’s total earnings were US$619 million last year, 36 per cent of which was earned through broadcast revenues (US$224 million). Meanwhile Catalan giant Barcelona, who in 2010 signed a new four-year deal with Mediapro on improved financial terms, raised US$251.3 million (44 per cent of the club’s total) from its broadcast deal during the 2009/10 season.

Income from broadcast deals is by far the largest revenue stream for soccer clubs globally. Currently the English Premier League, which sells its right collectively before distributing individual shares to teams, earns US$1.63 billion annually.

Source: sportspromedia.com

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