Central selling could double Liga club revenues, study says

The central sale of the media rights for the Portuguese Liga, the top division of football in the country, could generate double the total revenues currently raised through the individual selling of rights by clubs, according to a new study.

The study said that central selling by the league could bring in €120 million ($151.2 million) per year. It posited a range of possible income points, from a low of €83 million per year to a high of €142 million per year. The clubs currently generate a total of about €60 million per year through individual selling.

The report added, however, that increased competition in the Portuguese market was required to boost rights revenues. “Deals agreed in other European markets demonstrate the connection between strong competition between rights platforms and an increase of the total [rights fee income],” the report said. “[Under] the current market structure, the rights of the league will continue to be undervalued.”

The study was carried out by Oliver & Ohlbaum Associates. It was commissioned by the league, the Liga Portuguesa de Futebol Profissional.

Mário Figueiredo, the league president, hopes to centralise the league’s rights by the 2013-14 season. He has threatened to take legal action against the Olivedesportos agency, which controls rights relating to the league and its clubs, unless a deal is reached to centralise sales, according to the Desporto website.