La Liga clubs to make more funds by collective sale of TV rights

There is a plan to introduce a law that would give the Spanish Football League control over the collective sale of TV rights in order to improve club finances and also increase competitiveness.

This law is in the to expected by the end of this year give the league more power over the individual clubs, says Miguel Cardenal, president of Spain’s Sports Council.

Currently it is the clubs like Barcelona and Real Madrid who earn several times more than other Spanish clubs, thanks to their massive TV rights, which they have been selling individually in contrast to the collective model in the UK. These 2 clubs alone make a around 140 million euros each from TV revenues.

On the other side, Spain’s football clubs reduced their tax debts by 80 million euros but still owe 670 million euros to the tax office. Having the league control TV revenues would increase transparency and improve the state’s ability to collect its tax bills says Cardenal.

However, Cardenal acknowledged that the push to balance club finances would lead to more top players being sold to foreign leagues and to the widening of the competition gap between Barcelona and Madrid and all the rest.

“Real Madrid and Barcelona have a level of debt that is acceptable given their capacity to earn revenues” he said. “A reduction of 12-13 percent affecting most of the other teams, and some of them will say they have to sell players.” This could mean that any benefits to such clubs resulting from the change in the television deal could be cancelled out.

Cardenal argued the talent drain to leagues like the Premier League, which is home to a growing number of Spanish internationals such as Fernando Torres, David Silva and Juan Mata, is the new status quo.

“We have become an exporting country,” Cardenal said. “It’s a historic change and Spanish football has to recognize it.”