The Italian government is proposing a significant reform of the Serie A soccer league’s broadcast revenue distribution model. The proposed changes include repealing regulations that prevent the sale of domestic broadcast rights to a single buyer and altering how media revenues are distributed, including sharing with other sports.
According to reports, the draft bill would repeal the 'Melandri Law', introduced in 2008, which dictated that Serie A’s rights could not be sold to a single broadcaster. This move aims to address inequities around Serie A’s distribution of broadcast revenue.
Under the newly proposed legislation, a significant restructuring of income distribution is planned. At least half of the total income would be divided equally among all competing teams. Furthermore, another segment of the revenue would be allocated based on each team's sporting performance. Lastly, an additional portion of earnings would be set aside to support and encourage the development and utilization of young Italian players in the league. Furthermore, this legislation also obliges Serie A to share a portion of its television rights revenue with another professional sport.
Opposition from Lega Serie A
The top soccer league in Italy has expressed strong opposition towards these proposed changes. In an official statement released by several clubs' websites, President Ezio Simonelli voiced his concerns about these reforms being proposed without any prior discussions with Lega members.
The opposition from Lega Serie A to the proposed changes is rooted in two main concerns. Firstly, there is a strong resistance against any increase in solidarity payments. The league fears that this could potentially divert crucial resources away from the development and sustainability of Serie A itself. Secondly, they have expressed serious concerns over the rampant broadcasting piracy which they believe is negatively impacting the value of the entire sports system. This issue has led to substantial financial losses, exceeding €300 million (US$348 million) each year, further exacerbating their apprehension towards these proposed changes.
In response to Lega's criticism, Italy’s minister of sport Andrea Abodi reassured that this bill was still at an early stage. He clarified that what had been released was merely a first technical draft as part of a long process involving multiple ministries' contributions. Abodi also hinted at the possibility of transferring rights to a single operator, which is not currently permitted.
Current distribution system and recent deals
Under the existing system, 50% of all television rights revenue is shared by all Serie A clubs. An additional 28% of income is allocated based on sporting performance, while the remaining 22% is distributed based on 'social roots', including metrics such as each team’s individual television viewership and fan attendance at stadiums.
Serie A's most recent domestic rights deal was agreed in 2023 with DAZN and Sky signing five-year deals worth a combined €4.5 billion (US$5.23 billion). Despite criticism from several club owners who believed that Serie A should have created its own direct-to-consumer service instead, the league's chief executive defended these contracts.
The proposed changes to Serie A's TV rights and revenue distribution model are still in their early stages. While they aim to address inequities in revenue distribution, they have been met with strong opposition from Lega Serie A. As discussions continue between government officials and league representatives, sports fans will be keenly watching for updates on how these changes could impact Italy’s top soccer league.
