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SBD Global/February 25, 2014/Media

Spanish Football League Seeking To Balance Distribution Of TV Revenue In Next Contract

The "same old story" for all Spanish Football League (LFP) clubs, with the exceptions of Real Madrid and Barcelona, is that the "distribution of TV money becomes more unfair each year," according to Eduardo J. Castelao of EL MUNDO. Spain's government and the LFP are intending to "have more money from broadcast rights starting with the '16-17 season, and for the money to be distributed more evenly." The teams' current media contracts expire following the '14-15 season, but "the complex nature of the process could delay a new system from taking effect until '16." One example from the current system is La Liga Rayo Vallecano, which currently receives €19M ($26.1M) in TV revenue, but would receive around €30M ($41.2M) under the proposed new system. Currently, of the TV revenue of €800M ($1.1B) that La Liga teams earn, Real Madrid and Barcelona both receive €140M ($192M), which represents 35% of the total. The rest of the clubs receive an amount between Rayo Vallecano's €19M and the €44M ($60.4M) that Atlético and Valencia receive. How "would the new distribution work?" It could be "very similar to Serie A." Of the €850M ($1.2B) available to Serie A clubs, 40% is distributed evenly among the teams and 30% is divided up based on the populations of the cities where the teams play and the size of the fanbases of each team. The other 30% is distributed based on how teams finished in the previous year's standings. According to "the club's own calculations, under the proposed distribution model," Atlético would receive €60M ($82.3M) instead of the €44M it currently receives, representing an increase of 17%. The LFP's intention is for "the club that receives the least -- currently, the leader makes 12 times more than the club receiving the least -- to receive 4.5 times less money than the top club" (EL MUNDO, 2/24).
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