Palmeiras and Esporte Interativo announced on Tuesday morning an agreement for cable TV broadcasting rights of the Brazilian Championship for six years, from 2019 to 2024. Palmeiras are to receive some USD 28 million just for signing, in addition to upcoming yearly revenues from broadcasts.
Esporte Interativo is part of the global media company Turner, which includes heavy hitters like CNN, TNT and Cartoon Network. The deal is not only major in terms of financial revenues: Palmeiras and Esporte Interativo will jointly develop projects aimed at expanding the club’s supporter base and boost internationalisation of the Palmeiras brand. In addition, no more of the “here at the Arena Palmeiras” nonsense from Globo network commentators: Esporte Interativo will always call the Allianz Parque by its name.
Esporte Interativo might be a relatively new player on the market, but Turner as a company has been present in Brazil for three decades. Palmeiras studied the options long and hard before making a decision, taking full advantage of the fact that the club has not anticipated any its future broadcasting revenues (same cannot be said for many other Brazilian football clubs).
In addition to Palmeiras, Esporte Interativo has also signed with Atlético Paranaense, Coritiba, Internacional, Ponte Preta, Bahia, Ceará, Sampaio Corrêa, Criciúma, Joinville, Paysandu, Paraná, Fortaleza and Santos; Palmeiras being the obvious crown jewel.
According to Brazilian legislation, a station is only allowed to broadcast a game if it holds the rights of both clubs. Unless a deal is worked out between Esporte Interativo and SporTV of the Globo network – which should be considered likely – many a game will be restricted to PPV or, eventually, to open TV, as these broadcasting rights are negotiated separately.
Hats off for Palmeiras, keeping their cool to get the best possible deal financially and strategically speaking, while siding with the only stakeholder capable of challenge the Globo network’s monopoly.
Scoppia che la vittoria è nostra!