On 06 May 2015 Royal Spanish Football Federation (RSFF) has suspended all Spanish league games after 16th May due to clash with Spanish government due to new tv rights deal which was signed at the end of April 2015. With the current tv rights setup in Spain clubs were able to negotiate their own broadcasting rights deal unlike England where a more centralised system is installed and premier league sell tv rights of all 20 clubs collectively and income is shared equally between all 20 clubs in England top flight football.
When Premier League signed a new 2016-19 TV rights deal in February 2015 worth over £5 billion just from domestic rights sale and premier league are expecting another £3 billion from oversees rights which means starting from 2016-17 season bottom premier league club will earn around £100 million in tv rights money and thats way more than champions of the top leagues around europe. So after intense 6-month negotiations in spain a new legislation was passed at the end of April which will come into play start from 2016 season where La Liga will sell its TV rights collectively for all clubs and the income will be shared equally between clubs. Unlike the current system where clubs sell their rights independently causing massive difference income of top 2 and the rest of the clubs in spanish top flight.
Last season Real Madrid and Barcelona earn around €140 million each while champions Atletico Madrid only got €42 million and the bottom club Almeria got €18 million only. So what is the new legislation and how it will work plus why there is a clash between Spanish FA vs Government ?
New Spanish La Liga TV Rights Sale & Distribution Legislation 2016:
On 30th April, Spanish government approved a new law and legislation governing the sale of television rights in Spanish football top two divisions and the equal income distribution model. The new law will come into play from 2016 and here are some of the points you need to know.
- La Liga will sell the collective domestic & oversees broadcasting rights to the highest bidder starting from 2016-17 season.
- 93% of tv rights (both domestic and oversees) money will go to Spanish top 2 division (La Liga & Liga Adelante).
- 3.5% will be used as parachute payments for clubs who get relegated from Spanish top division.
- 2% will be for administration and operations of Spanish FA
- 1% for the league system and 0.5% for Women football.
- La Liga portion of the money will be distributed among 20 clubs fairly equally with the following model.
TV Rights Money Distribution Model For La Liga:
From the 93% rights money allocated division I & II, 10% goes to division II ( Liga Adelante) teams while rest of the money will be distributed among 20 La Liga teams according to following formula.
- 50% Equal share for all 20 clubs in La Liga
- 25% Merit money based on how the clubs finish in the table in last 3 years.
- 25% According to resource generation ability of clubs
So the new distribution system is pretty much similar to what English Premier League installed but the biggest difference being one major clause in the new legislation which states that no club should get less money with the new system what they are getting right now. Which means Real Madrid and Barcelona will still be making around somewhere €140 million a year.