Sports Business : Brazilian football clubs to follow cricket model to monetize media assets

Brazilian president Jair Bolsonaro has done what cricket does. Now the football clubs in Brazil will follow the same commercial model as followed by the global cricketing nations to monetize themselves during the bilateral cricket series. 

Bolsonaro has issued a decree that markedly alters the media rights landscape for the country’s football clubs. According to the proposed law each home team in Brazil take full control of their media rights without the need to negotiate with the visiting team. The text of the decree states that the clubs would be allowed to “negotiate, authorise or prohibit the capture, fixation, transmission or reproduction of images, by any means or process, of the sporting spectacle”. This is how the global cricket market operates

This is the exact way each cricket country monetize their commercial assets during the bilateral series. 
Bilateral Cricket Media Rights Monetization Model
 
– Each county gets exclusive rights to monetize their bilateral home series / matches
– No approvals on commercial deals required from the visiting country 
– No revenues are shared with the visiting team
– Each host team is responsible to monetize their own assets when the matches in their home grounds
– The host team takes all costs to organize matches 
 
Brazil football clubs to follow cricket commercial model

According to the decree passed by Brazilian president, home team in Brazil now will have full control of their media rights without the need to negotiate with the visiting team. Clubs would also be able to sign shirt sponsorship deals with media companies in an overturning of a law that has been in place since 1998.

The law would also permit clubs to broadcast home matches on their own TV channels. The decree will remain in effect for the next 60 days and then another 60-day period but still requires ratification from the Brazilian Congress in order to become law.

The move by Bolsonaro came ahead of the start of the Carioca Championship, the state championship in Rio de Janeiro, and amid a dispute between Brazilian commercial broadcaster Globo and Flamengo over coverage of the side’s match against Bangu.

Globo, which holds rights deals with various clubs, has said that the new legislation would not affect contracts that have already been signed or competitions to which rights have already been assigned by clubs for current or future seasons. The broadcaster has also threatened legal action against “any attempt to violate its acquired rights” according to Sports Business. 

Globo also issued a statement last night challenging that the decree would allow Flamengo to show its matches on FlaTV, it’s in-house channel.

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