O Corinthians recently announced his departure from the Libra and membership of the Liga Forte União (LFU). This strategic change includes the sale of the transmission rights of the Brazilian Championship from 2025 to 2029, with the intermediary of the Livemode agency, which is also one of the main investors of LFU. This movement involves a complex financial arrangement, including a loan of R$ 150 million offered by XP Investments.
Contract Details
O Corinthians, upon joining the LFU, accepted the same conditions for the distribution of revenue from the transmission rights applicable to the other clubs in the block, as Botafogo, Cruise, Fluminense, International and Vasco. The distribution model is 45-30-25, where:
- 45% of revenue is distributed equally among clubs.
- 30% are distributed according to the position in the championship table.
- 25% are based on commercial appeal and broadcast hearings.
In addition, LFU offered the Corinthians a loan of R$ 150 million, to be paid in monthly instalments from May 2025, with CDI interest plus 3%. This loan is not an advance of revenue, but a direct credit, which makes the financial conditions favorable to the club.
To ensure some financial stability, a financial mattress was created. This mechanism allows the Corinthians maintain predetermined revenue values even if the LFU does not reach the projection of R$ 1.7 billion in revenue. At best, if the Corinthians win the Brasileirão, the recipe can reach R$ 250 million, while at worst, with a South American rating, would be R$ 175 million. If LFU does not reach the projected revenue, the difference will be dropped from the loan, limited to R$ 150 million.
If the Corinthians is lowered, there is no guarantee of revenue, and the values traded for the Series Not applicable. In such a scenario, a new negotiation would be necessary for the sale of the rights of departures in Series B.
Bastors of the Decision
The decision-making procedure Corinthians took over five months. During this period, the club negotiated simultaneously with Libra, LFU and Brax Sports Marketing Agency. The LFU almost closed the negotiations when Brax stood out as a favorite, but President Augusto Melo insisted on obtaining minimum guarantees for the club's revenue, achieving only the financial mattress.
The final decision was influenced by Augusto Melo's lack of trust in Libra, the legacy of his predecessor and suspicions of favoring Flamengo. Even with one last attempt by Libra to offer an R credit$ 150 million and an advance of R$ 65 million Corinthians He chose LFU.
Impact on Libra
The exit of Corinthians Libra has significant consequences. Libra's contract with Globo, stipulated in R$ 1.3 billion per year will be reduced by 10% due to the absence of Corinthians and 11% more if the group does not have at least nine clubs in Series A. With the exit of Corinthians, the core value of the contract is reduced to R$ One billion a season, to be divided by the remaining eight clubs.
