Portuguese giants, Benfica, have demanded an immediate halt to the process of centralizing television rights for the top-flight domestic league. The club's president, Rui Costa, sent an open letter to Portuguese Professional Football League (LPFP) president Reinaldo Teixeira earlier this week expressing his concerns.
Costa claims that the centralization process scheduled for 2028 is behind schedule and outdated. He argues that after more than four years, the league has not fulfilled its ambition to strengthen competitiveness or promote greater equity between clubs.
The Lisbon-based club has suspended its position in the management of Liga Centralização body set up in 2021 when LPFP and Portuguese Football Association (FPF) signed a Memorandum of Understanding to create a single company overseeing media rights sales.
Urgent meetings called for
Benfica is calling for urgent meetings with government officials and parliamentary groups. They are urging FPF, LPFP, and Attorney General's Office to address controversial issues such as ex-referees occupying leadership roles within sports governing bodies. Costa does not believe that “the current process meets the needs of Portuguese football” effectively replacing individual clubs' sale of broadcast rights model. The present model means there is a significant disparity between top-tier Primeira Liga clubs' earnings from media rights - a ratio as high as 15:1.
Rui Costa, Benfica president, said:
“The current centralization process is delayed, at risk of failing to achieve its objectives, and already outdated in the international context. The impact that football has as a structuring sector of the Portuguese economy requires a clear strategic vision and responsible management. Benfica will always be supportive of the collective mission, but realistic regarding its value in the market and the potential of the project in its current form.”
In his seven-page letter published on Benfica’s website, Costa claimed that €300 million per season target from centralized rights sales lacks credible foundation given that combined value currently stands at around €180 million per season.
Rui Costa added:
“In the current reality of broadcast market value may not even reach €150 million to €200 million [per season], representing an irreparable loss of revenue for all Portuguese clubs — large, medium and small. This scenario would compromise competitive balance, financial sustainability and the overall quality of national football.”
Need for alternative models
Costa accused the league of failing to present alternative models or conduct a real consultation process. He warned against an overly concentrated domestic television rights market with no effective competition between operators.
Benfica proposed that to agree on a common position on minimum requirements and an alternative plan for responsible centralization beneficial to all, the league should lay out the financial landscape and propose distribution plans considering sporting achievement, media presence, and viewership stats. The club also wants a plan put in place to combat piracy.
While centralized media rights may seem like a step towards fairness in sports broadcasting revenues among clubs, Benfica's concerns highlight potential pitfalls that need addressing before such a system can be effectively implemented.
