Barcelona vs. Real Madrid - Rivals About to Get More Competition With New TV Deal
Spanish soccer is about to get interesting. Or, at least, that is the idea.
A new deal has been announced that ends the Barcelona-Real Madrid monopoly of Spain's television money.
For some perspective here is the way things have been. Barcelona and Real Madrid, the nation's two biggest clubs, have managed to negotiate their own agreements for the sale of broadcasting rights over recent history. That has allowed them to obtain massive advantages (we are talking about 150 million euros per year, a number that is over three times the amount earned by other first division sides) in the transfer market.
So now on to the way things will be. The Spanish government has moved forward with a new deal that spreads the wealth through a centralized system, meaning that the two teams will no longer be able to sell TV rights individually. The system distributes 50 percent of the share equally between the 20 Spanish League clubs, and the remaining 50 percent distributed on other criteria. Teams could receive more based on league position in previous seasons as well as ability to generate funds through other means.
This final criteria means that the two clubs will continue to earn more than the rest, simply because they are likely to remain atop the league standings and are franchises with global renown. But the now the playing field has leveled out and it is unlikely that the two clubs will be able to make as many high profile transfers as they have over the years. It is likely that neither club is going to be able to spend upwards of 200 million euros in two season to purchase two superstars the way that Madrid with Gareth Bale and James Rodriguez or the manner in which Barcelona brought in Neymar and Luis Suarez.
But more importantly, other teams will now have a better shot to make higher profile purchases and rival the top two clubs. It might no longer be a two- or three-team battle for the top spot in a few years. The ultimate winners? The fans.