Globo, Coritiba agree to cancel revenue-sharing for rest of 2020

BELO HORIZONTE, BRAZIL - NOVEMBER 19: Valdivia of Atletico MG struggles for the ball with Jonas of Coritiba. (Photo by Pedro Vilela/Getty Images)

Brazilian media group Globo has reached an agreement with Campeonato Brasileiro Série A club Coritiba that will see the club paid a flat fee for its media rights for the rest of 2020 instead of the previously agreed revenue-sharing model.

Globo’s revenues have been hit hard by the Covid-19 pandemic and it proposed the revised arrangement that will see it pay R$22m (€3.7m/$4.3m) to the club, reports Maquina do Esporte.

Brazilian clubs sell their media rights in three tranches: pay-per-view, free-to-air and pay-television. Globo holds Coritiba’s pay-per-view and free-to-air rights, while US-headquartered pay-television broadcaster Turner holds the pay-television rights.

Globo has stated that this condition will only affect Coritiba for the calendar year and the revenue-sharing model will resume in 2021.

All of Globo’s agreements across Brazilian football feature some revenue-sharing element with the amount clubs receive divided up on a 40:30:30 basis.

Of the clubs’ proportion , 40 per cent is divided equally between all the clubs signed with Globo, 30 per cent on a team’s final league position at the end of the season and 30 per cent by the number of matches broadcast that feature the given team.

Globo is the dominant broadcaster of domestic Brazilian football, holding free-to-air and pay-per-view rights to all 20 Campeonato Série A clubs and pay-television rights to 12 Série A clubs. US broadcaster Turner holds pay-television rights to the remaining eight clubs.

The Covid-19 pandemic has strained Globo’s economic position, while the Provisional Measure 984/2020 introduced by the Brazilian government has threatened its control over the market.

PM 984/2020 was introduced in June by Brazilan president Jair Bolsonaro. It has temporarily amended the law, enabling the club playing at home to have sole discretion over the sale of its media rights. Prior to the introduction of this provisional measure, both teams had been required to agree a broadcast deal for a match to be aired.