The public explains the R$1.1 billion contribution to Libra for the trio of SP and Flamengo – 04/03/2023

Libra (Brazilian Football League) has created a list of contributions to sell 20% of the rights to Série A and B. In the division, Flamengo, Corinthians, Sao Paulo and Palmeiras receive more than other teams. One explanation for the account is the audience: the quartet of clubs attracts four out of every 10 people who watch the tournament. This tranche is larger than the contributions allocated to the teams.

Brazilian Series A and B clubs are discussing forming a league to organize the tournament in 2025. There are two groups: 1) Libra, with Corinthians, Santos, Sao Paulo, Palmeiras, Flamengo, Vasco, Botafogo, Grimo and Cruzeiro, among others 2) Liga Forte Futebol, With Fluminense, Internacional, Atlético-MG and Fortaleza, among others.

The university signed a prior non-binding agreement with the UAE Mubadala Fund. The fund will buy 20% of the rights of the Brazilian for 50 years. In return, he will pay R$4.750 billion to the clubs, with the money divided.

As explained in the blog, Flamengo will receive R$316m, Corinthians will each receive R$296m, and Palmeiras and Sao Paulo will each receive R$257m. In total, the quartet of clubs will receive R$1.127 billion.

Libra calculates that this represents 32% of the total money allocated to the 20 clubs in Serie A. In total, the elite teams will have R$3.5 billion, with the rest going to second division teams and costs.

Audience figures for the 2022 Brasileiro tournament compiled by Libra indicate that these four clubs make up 41% of the total audience for the tournament matches. That is, these teams will receive a smaller share of the audience that they provide for the tournament.

The audience is not the only factor taken into account when calculating contributions. There are other elements such as the history of performance in the championship since 1971. In this case, the four clubs are also the most successful.

Liga Forte Futebol has adopted a different criterion for the division of contributions, as also explained in the blog. According to its model, it would be a distribution that would practically balance the 12 main clubs with a difference of only R$ 22 million between the first and the twelfth. On his list, the Iron Trio and Flamengo will receive R$ 865.9 million, R$ 261.1 million less than Libra’s list.

In calculating Libra, Forte Futebol standards allocate 24.6% of their total contribution to the quartet of teams. It’s a much smaller audience than the four clubs in Brazil have.