Spanish law change gives LaLiga more flexibility in TV deal making

April 28 – LaLiga will have more flexibility in negotiating its broadcast deals following the Spanish government’s scrapping of a three-year licensing restriction on TV rights contracts.

From the 2022/23, the Spanish league will be free to move into the European TV rights market and agree to extended deals after a law limiting centralised contract tenders in Spain to three years was amended.

The Royal decree now states that “the duration of commercial contracts shall be subject to the competition rules of the European Union”. The new legislation will be welcome news for La Liga and its clubs amid football’s shutdown and the prospect of unprecedented financial turmoil in the sport.  La Liga was expected to generate TV rights income in excess of €2 billion this season, but the coronavirus pandemics has cast doubt over those fees.

The league is currently working on TV rights deals in 15 European territories. The opportunity to license rights for a longer period than three seasons will likely attract more TV interest as broadcasters can buy with a longer term security. Similarly LaLiga will have greater security of mainstream broadcast income in what is a fragmenting TV market.

It is not clear yet how La Liga will tweak its tender process. In April, La Liga signed a deal with TV2, a Danish commercial broadcaster running from the 2021/22 season.

Mediapro holds the rights to sell La Liga’s international rights until the 2023/24 season in a contract that guarantees the league €4.48 billion.

Contact the writer of this story, Samindra Kunti, at moc.l1606825332labto1606825332ofdlr1606825332owedi1606825332sni@o1606825332fni1606825332