Flamengo Admits LFU Deal Was Better: A Wake-Up Call for Libra?
Rio de janeiro, Brazil – In a candid admission that’s sending shockwaves through Brazilian football, Flamengo’s president, Luiz Eduardo Baptista (Bap), has openly declared that the club, along wiht the Libra bloc, “poorly negotiated” their media rights deals. The stark contrast? The rival Liga Forte União (LFU),which includes Botafogo,apparently struck a much more advantageous agreement.
This isn’t just a case of sour grapes; Bap’s comments, made in an interview with “UOL,” highlight a significant strategic misstep that even Flamengo, a powerhouse in Brazilian football, is now acknowledging. The implications are far-reaching, potentially impacting the future of how Brazilian clubs monetize their broadcast rights.
“I think it was poorly negotiated by Flamengo, it was poorly negotiated by Libra, it was poorly negotiated by Flamengo,” Bap stated, leaving no room for ambiguity. “Now, the part that was poorly negotiated by Flamengo and has been signed, we will comply. It is the institution that signed, but I have no doubt as a professional that it was poorly negotiated, regardless of anything.”
The “Ox” vs. “Fillet” Analogy: A Masterclass in Negotiation
Bap’s clarification of the LFU’s success is especially insightful, using a vivid analogy that resonates with anyone familiar with market dynamics. He contrasts the Libra bloc’s approach with the LFU’s strategy, likening it to selling a whole ox versus selling individual cuts of meat.
“This type of choice is just for you to see what Liga Forte did,” Bap explained. “The world is increasingly moving towards fragmentation, towards the segmentation of rights. So we take, for example, the libra clubs, they have 55, 56% of the audience in Brazil, if you compare them to the Liga Forte.We kept 44, 45% of the money.We ended up with 20% less than we should have, because we sold just one ox, we sold a whole ox.”
He continued, painting a picture of the LFU’s shrewdness:
“on the other hand, the people at Live Mode where very competent in understanding this market reality and they sold the fillet, they sold the picanha, they sold the chuck, they sold the drumstick separately and they did it. Having 44, 45% of the audience, they made 55% of the money. So see, whether due to negotiation capacity and competence, which Liga Forte was better than whoever did for Libra, or due to Flamengo’s internal negotiations, we made a bad contract.”
This analogy is powerful. imagine a sports league in the U.S. deciding to sell its entire broadcast package to one network for a lump sum, versus a league that strategically carves out rights for different platforms – national TV, regional sports networks, streaming services, even international distribution. The latter approach, as Bap points out, allows for maximizing value by catering to specific market demands and audiences.
The Lingering 30%: A Courtroom Battle Brewing?
The core of the issue for Libra lies in the remaining 30% of their media rights, which are currently entangled in legal disputes. Bap expressed frustration over a lack of unity within his own bloc, particularly regarding Flamengo’s desire to participate in integration committees with the LFU.
“Flamengo asked to participate in the integration committee with the liga Forte and Palmeiras e São Paulo voted against,” Bap lamented. “So, when you think about bringing Libra and Liga Forte together, and you see clubs that are, in theory, your partners believe that Flamengo cannot, or should not, or they do not want it to participate in a committee to unite the leagues, who is selfish? Who is exclusionary? In fact, there are other clubs that are exclusive to Flamengo. Flamengo never refused to discuss or participate in absolutely anything.”
This internal friction within Libra is a significant concern.For a league to thrive, especially in a competitive global market, collaboration and a unified front are crucial.The fact that some Libra members are reportedly blocking Flamengo’s participation in discussions with a rival bloc suggests deeper issues of trust and strategy.
Bap further emphasized Flamengo’s willingness to compromise:
“So I see that this is not true, that Flamengo does not want to participate.Regarding this story that Flamengo is selfish, I think it was very clear here in the presentation we made how much Flamengo has given up so far. Flamengo gave up half a billion reais in five years, with no guarantee of absolutely anything and our partners don’t want us to participate in the integration committee with Liga Forte.”
What This Means for Brazilian Football (and Beyond)
Bap’s admission is a significant development. It suggests that the LFU’s more segmented approach to selling media rights
