June 25, 2022
Without Globo, FPF tries new model of selling broadcast rights to Paulista |  sports business

Without Globo, FPF tries new model of selling broadcast rights to Paulista | sports business

The São Paulo Football Association (FPF) will, from 2022, implement a new transmission sales model. Paulista Championship. Instead of selling all rights only to Globo, as has happened in recent years, the entity will test the sale of game packages for different platforms.

Two partnerships have been closed so far. On Open Television, the rights were purchased by Record. The station got 16 game transfers. Online, YouTube also bought a 16-game bundle – which includes 12 games from the group stage, one from the quarter-finals, semi-finals, and the last two games. The only two clashes that coincided in the agreement with the two companies are the final matches.

FPF is now evaluating whether it will broadcast all matches on its own platform, Paulistão Play, made possible through LiveMode, or whether it will also transfer pay-per-view rights. Globo’s premiere is one possibility. The organization is also considering selling a new game bundle, this time for closed TV.

Palmeiras vs Sao Paulo, Paulistao final 2021 – Photo: Marcos Ripoli

The new model for selling broadcast rights has been implemented by the federation, with all participating clubs in the state validated. This is the first negotiation that follows the guidelines The Mandant Act, approved by the Brazilian Congress in August.

The values ​​are kept confidential by all business divisions: clubs, federations and partners. The contract was valid until 2021, with Globo, worth R$225 million annually. After the epidemic and the change in the location of the station in the market, this number is difficult to repeat.

YouTube behind the advertisers

After getting 16 games from Campeonato Paulista, YouTube went to the ad market to find sponsors for its soccer package. The Google-owned company will need to raise more money than it spends on the purchase of profit rights.

According to the commercial offer obtained by the article, the company has created four stakes valued at R$19.5 million each. Thus, revenue is likely to reach R$78 million. In practice, it is common to give discounts.

In addition to the transfer of Campeonato Paulista itself, YouTube offers market insight into the channels of the clubs, and in the gallery of Paulista Female and content creators – “Desimpedidos” and “Passa a Bola”.

The results that the company will have in 2022 will, in a way, serve as a signal to the market about the future of football broadcasting. Leaders are waiting for tech giants to enter, especially in larger negotiations, such as NSBrazilian Championship.

YouTube targets R$78 million in football package revenue in 2022 – Image: Reproduction

Until the 2021 release, Globo used to pay R$225 million annually for all rights to broadcast Campeonato Paulista. This amount includes payments to all clubs, which in turn donated part of their income to the state federation.

The radio made proposals for the rights to free television broadcasting for 2022, but withdrew from the dispute. When consulting the report, Globo management stated that Escalating the values ​​of sports rights to impose a review in investment What he does in football.

We have tremendous respect and appreciation for FA Paulista and Paulistau and are certain that over the years both Globo and São Paulo Football Club have benefited from this partnership. We are the largest partner and investor in sports and football, especially in Brazil. The role we played for a few decades – the announcer tells Give.

– In recent years, we have gone through a period of transition in the business of sports and media as a whole. Escalation in the values ​​of sports rights imposed on us to review the investment portfolio from all windows, with many investment decisions, always aimed at business sustainability. Business possibilities and expectations are not always reconciled. This was the case.

Paulista’s departure puts into question the model the network has adopted in football for many years, particularly in the pay-per-view premiere. Without the matches of the states of Sao Paulo and Rio de Janeiro – which presented their version in 2021 without the Globo – the commercial appeal of the product to the public will be reduced, as it will have fewer matches.

Although there is still potential for an agreement between FPF and Globo for pay-per-view rights, negotiating is not easy. That’s because the union decided to launch its own platform in January of this year, Paulistão Play. For the Game Gallery in Premiere, in theory, there should be an exclusivity. These products will compete.

About Paulista’s pay-per-view, Globo stated that he “maintains the dialogue and evaluates the possibilities.” Asked about the impact of leaving this state on Premiere, the company says it still has the largest offer of content on this type of platform, considering other leagues under contract.

Read Globo’s stand at the premiere in full:

“The premiere has represented, for years, the largest and most complete show of Brazilian football (Home State, Copa Brasil, Serie A, Serie B), giving the participating fans a great display of the games in an organized manner. We appreciate everyone .. Football Championship Brazilian, including Paulista.

It is also important to highlight the positive impact of Premiere on national football, with increased gains for clubs and partner associations. In this society, clubs are rewarded in the months of the national championship with a share of the revenue, weighted by the percentage of each fan’s registration.

The lack of a state exposes the team fan experience in this case to fragments, which could affect clubs’ bonuses during national leagues, either by reducing revenue or by changing the proportion of fans at the base.

Premiere will continue to provide high-quality content based on the rights we have acquired and business models that continue to deliver sustainable benefits to clubs, fans and Globo.”

Sao Paulo’s attempt is not the first. In 2021, a Carioca Championship It was played under a new broadcast rights model. The Rio de Janeiro State Football Association (FARG) has also chosen to split its state’s rights among several partners.

In short, the competition had a smaller audience and earned less profits than its previous decade. Considering the sums that reach the bank accounts of the clubs, The amount increased from R$120 million annually, until 2019, to less than R$20 million in 2021..

There were many complaints about delays in transfers and it ended up consuming a large portion of the money due to tournament production costs.

Behind the scenes, the São Paulo championship officials avoid making comparisons with their neighbours. The entry of a partner of the size of Google, which was not present in the case of Rio de Janeiro, bolsters the hope for better results for clubs and for the federation in São Paulo.

Both states are experiences that will influence the biggest negotiation of broadcasting rights for the national football, those of the Brazilian Championship, whose current contracts are valid until 2024. The success – or failure – of the new models will provide a basis for managers to make the next decisions.