Shortly Before January 8, 2011: Spanish Clubs Agree to New TV Revenue-Sharing Deal; Barcelona, Real Madrid to Get More than Others

Spanish football clubs conclude a new TV revenue-sharing agreement, which has been under negotiation for some time (see (November 17, 2010)). Under the deal, Real Madrid and Barcelona will share 35 percent of TV revenues; the second and third most popular clubs, Atletico Madrid and Valencia, will share 11 percent; and the remaining 16 clubs will get 45 percent between them. In addition, for the first time the Spanish league will offer a “parachute payment” to protect teams that are relegated to a lower tier: the sudden drop into the second division—and large fall in TV income—had previously been difficult for clubs to handle as they still had to pay high wages despite playing in a lesser competition. The unequal distribution draws some protest. For example, Sevilla sporting director Ramon Rodriguez Verdejo comments that the Spanish league “reminds me more and more of Scotland,” which has been dominated by two clubs for decades. Sports Illustrated and Guardian columnist Sid Lowe adds that the “inequality” between Barcelona and Read Madrid on the one hand and the other 18 clubs on the other is now “enshrined,” commenting that the other 18 teams in Spain “no longer aspire… to be the best; but they [do] aspire to stay in business.” [Sports Illustrated, 1/14/2011]