Atletico CEO issues warning over TV rights
Reuters - Saturday 04 August 2012, 10:46
The future of La Liga is under
threat unless wealthy and dominant Real Madrid and Barcelona
agree a more equitable distribution of income from television
rights, according to Atletico Madrid chief executive Miguel
Angel Gil.
"We want a league that is solvent and competitive," Gil said
on Atletico's website.
"To achieve that, it is fundamental that the gap in budgets
and revenues is narrowed and that there is a fairer distribution
of [cash from] TV rights," he added.
"Only in that way can a more just, more competitive and more
attractive league be achieved.
"Atletico, like the rest of the clubs, will do everything in
its power to defend its interests. The future of our football is
at stake."
Analysts have long argued that Spain needs to adopt a system
of collective bargaining and income distribution for TV rights,
similar to those used in rival European leagues.
More clubs will follow Real Zaragoza, Real Betis, Racing
Santander and others into administration unless something is
done, they warn.
Thanks to their lucrative deals, Real and Barca gobble up
about half the annual pot of TV revenue of around 600 million
euros which helps make them the world's
richest clubs by income and means they can buy and pay the best
players while their Spanish peers watch in envy.
Despite pressure from their La Liga rivals, Spain's big two
have shown little signs they are prepared to give up their
dominant position.
A recent collective deal struck by the English Premier
League, which will boost revenue by 70 percent over three years,
makes it even less likely they will accept change, analysts have
said.
LEGAL BATTLE
The situation has been complicated by a legal battle between
broadcasters Mediapro and Canal+ over who owns the rights to
show matches and with two weeks to go before the start of the
season a solution appears remote.
"The atmosphere of confrontation, both between the two
broadcasters and the clubs, may not only bring about the breakup
of the league but also the bankruptcy of the clubs," Gil said.
"Because there is no ordered economic model for exploiting
TV rights the clubs have to wait until just before the
championship begins to see if the broadcasters can agree.
"The uncertainty, right up to the last minute, means it's
impossible to set out any social, sporting, commercial or
economic strategy for the club."
Real and Barca did not immediately respond to emails seeking
reaction to Gil's comments.