For the first time ever, premier-league soccer clubs are to profit from the boom in pay-per-view sales of Brazilian Championship soccer matches. Sky and Net Serviços together sold a record 240,000 PPV soccer packages in the first half. The total is expected to surpass 280,000 by the end of the tournament in December.
Now Clube dos Treze and Globosat have signed a deal guaranteeing at least 40 million Brazilian Reals net (about 13m US Dollars) for the 2003 Championship plus 50% of any surplus over a certain threshold. All the signs are that the threshold will be exceeded, probably by about 10% according to the clubs, who decline to risk a more detailed forecast. This is the first time Brazilian clubs will take a share of pay-TV revenue. If their expectations prove correct, the deal will boost the pay-TV industry?s credibility and pave the way to even more vigorous efforts by clubs to sell PPV in 2004, boosting the revenues of both operators and the programmer.
The 2004 deal involves only revenue sharing, however, with no guaranteed minimum. Sales of 2004 matches will begin this year, coinciding with the decisive rounds of the 2003 Brasileirão. Broadcast networks will have the rights to steadily fewer matches until 2005, again according to the deal with clubs.