The Globo organizations are very close to signing an unprecedented agreement with the Clube dos 13 in Brazil, becoming the clubs' partner in the exploitation of the rights to the Brazilian Championship until 2009 in all media, not just television broadcasts. The agreement is the largest and most comprehensive ever signed in the country. It is estimated that the clubs will receive around US$ 300 million between 2006 and 2009, but the figures could increase depending on pay-per-view. The clubs will also have the prerogative of overseeing production costs.
In fact, there will be several contracts in one, including specific agreements to exploitation of rights on open TV, closed TV, pay-per-view, games, interactive TV, internet, cell phones and advertising boards in stadiums.
The novelty on free-to-air TV is that Globo will have the right to show three, and no longer two, matches per round. This third match will be broadcast to meet regional demand. This is because in the current model, which applies until 2005, clubs have little exposure and reduced access via pay TV. Globo's closed channels (SporTV 1 and 2) will have two games per round, and the rest of the matches will be shown on pay-per-view.
The pay-per-view remuneration scale is progressive: if the revenue is less than R$ 20 million, the clubs get 100% of the net revenue (which is the total revenue minus the 40% production fee). Between R$ 20 million and R$ 30 million, the percentage is 90%. Between R$ 30 million and R$ 40 million, 80%. Between R$ 40 million and R$ 50 million, 70%. Between R$ 50 million and R$ 60 million, the clubs get 60%. Between R$ 60 million and R$ 120 million, the clubs get 50% and above that they get 45% of the revenue.
Other media
For other media, the model is "revenue share", meaning that the clubs take the risk together with Globo, which designs the business models. The clubs still don't know how they can profit from the new media - cell phones, games, interactive TV and the internet - but they are counting on Globo to come up with a formula and, above all, to monitor abuses.
The clubs are counting on Globo to establish a partnership with cell phone companies, as they believe that this is a great opportunity to be exploited.
Dividing the fight cake
The agreement between Globo and the clubs should have been finalized on Monday, but the Clube dos 13 assembly ended in a stalemate over the policy for transferring the funds, due to an internal dispute between the members of the clubs' association.
