Important Update About La Liga Price Money


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Important Update About La Liga Price Money.

La Liga Price Money: The Campeonato Nacional de Liga de Primera División,  popularly known as La Liga (La Liga Santander for sponsorship reasons with Santander), is the men’s top professional football division of the Spanish football league system.

Managed by the Liga Nacional de Fútbol Profesional (English: National Professional Football League), also known as the Liga de Fútbol Profesional (LFP), La Liga is contested by 20 teams, with the three lowest-placed teams at the end of each season relegated to the Segunda División and replaced by the top three teams in that division.

La Liga Price Money Update from Forbes

The final numbers are in for the 2017/18 season and Barcelona pocketed €154M ($176M) and Real Madrid €148M ($169M) from a total TV pool of €1.33B ($1.52B).

It was a record for both teams but the wealth was spread throughout the league. Sixteen other teams also received record payouts with only Valencia and Malaga failing to beat their previous highs.  Even then, the differences were minuscule – Valencia missed by €1M and Malaga by €2M.

Rights fees distributed to La Liga teams have grown by more than 80% since 2013/14 (€734M), the last season before a form of a centralized model of selling was adopted.

A centralized model was legislated by a 2015 Royal decree and required implementation for the 2016/17 season. 2015/16 saw a hybrid model implemented as a stepping stone to full implementation.

Prior to the decree, La Liga teams sold rights on an individual basis. Barcelona and Real Madrid siphoned off a large percentage of the rights (combo of 38% in 2014/15). This percentage has now dropped to 23%. However, the pie has grown larger and so Barcelona and Real Madrid are banking more money than ever before.

As part of the transition to centralized selling Barcelona and Real Madrid were guaranteed that neither team would receive less than they did through the old system. Both teams have now exceeded the grandfathered amounts.

The centralized model has been a great success. Teams finishing at the bottom end of La Liga are receiving over €40M each – in 2014/15 it was closer to €18M.

Teams finishing higher in the table have also benefited greatly. Atletico Madrid (€111M up from €42M, +163%) and Sevilla (€74M up from €35, +111%) are two prime examples.

The distribution is based on several aspects and different leagues assign different weights to such factors as finishing position, performance over several seasons, attendance and others.

Based on the 2017/18 distribution, the ratio between the highest earning team and the lowest earning team in La Liga is 1:3.6. Serie A is generally at the higher end of the scale – around 1:4.5 while Ligue 1 is usually close to La Liga’s ratio.

The Bundesliga ratio has run at around 1:3.4 while the Premier League ratio of 1:1.6 makes the English top flight the most equitable by far.

The Premier League continues to outstrip the other leagues as far as revenue generation is concerned. In 2017/18, the Premier League distributed more than double the La Liga amount – €2.7B ($3.1B).

The top-earning team, Manchester United, received €167.8M ($191m) while West Brom, the bottom team banked €106M ($120.9M).

Both leagues are now in the final year of three-year rights deals and a new cycle starts with the 2021/20 season. The Premier League’s domestic TV rights for 2021/20 are close to par with present earnings while the final value for overseas rights has still to be announced.

La Liga is expecting an increase in rights fees of around 20% starting in 2021/20.

List of Spanish La Liga Prize Money Distribution

The BBVA was won by FC Barclona last season and they won the title with a 1 point entaria. lead ahead of Real Madrid. This season is looks like Real Madrid is going to win the Spanish La Liga title.

Spanish La Liga has signed a new collective TV rights deal for the spanish division 1 which will come into play starting from 2017-18 season.

Unlike the previous seasons, 2017-18 La Liga season will see a lot more balanced distribution of La Liga tv and central sponsorship money.

However, Real Madrid and Barcelona are both set to keep their usual earnings under the new system as well. Below is the entire prize money distribution system and how much every club in spanish top flight will earn this season

How La Liga TV Rights Money Distribution among 20 Clubs

This is how the TV money distribution system works:

Unlike the previous model, every top division club had to negotiate their own TV rights deals but La Liga passed historic bill in 2015 which ensured collective sale of La Liga tv rights both domestically and overseas.

Telefonica, Movistar bought the domestic live tv rights for around €1.89 billion in 3 year deal while mediapro also splashed out €750 million for three years making it a total of €2.65 billion (£1.8 billion) over three year domestic deals.

La Liga are selling collective TV rights in overseas markets around the world. They increased their oversees TV money compared to previous deals.

La Liga Prize Money

With the new TV money distribution model, La Liga will put both domestic and overseas yearly TV money in one pot from which 10% will be allocated for division 2 teams. Meanwhile, the rest of the 90% will be distributed according to following model.

Domestic and oversee TV Money

  1. Equal-share: 50% will be distributed equally between all 20 top flight clubs
  2. Merit-Money: 25% will be distributed according to league positions based on last 5 years.
  3. Resources-Generation: 25% will be distributed according to each team’s capacity of generating resourses for examble number of official club members, season tickets sold, attendance etc.

La Liga Prize Money Pool For 2016-17 Season

So the total money from both domestic and overseas three tv deals combined is around €2.65 billion (£1.8 billion). They will divide into three parts making prize money pool for each of the three seasons under the current TV deal period 2016-2021.

They will distribute around €0.83 billion (£0.6 billion) a season among La Liga clubs (10 % will go for La Liga 2 clubs). So the prize money pool for 2017-18 seasons will be around €1 billion (£0.7 billion) and here is how the distribution model works in La Liga.

So the La Liga prize money pool for 2017-18 will be setup with two portions of money.

Spanish La Liga 2017-18 TV Money Distribution

They divide the money equally between all 20 clubs and for 2017-18 season all La Liga clubs will get around €50 million each from this portion.

La Liga Prize Money 2017/2018 (Final table)

NO#  CLUBS EQUAL SHARE MERIT & RESOURCES TOTAL
1  FC Barcelona €50m €40m + €60m €150m
2 Atletico Madrid €50m €38m + €60m €148m
3 Real Madrid €50m €36m + €30m €116m
4 Valencia €50m €34m + €25m €109m
5 Villarreal €50m €32m + €20m €102m
6 Real Betis €50m €30m + €15m €95m
7 Sevilla €50m €28m + €20m €98m
8 Getafe €50m €26m + €18m €94m
9 Eibar €50m €24m + €20m €94m
10 Girona €50m €22m + €16m €88m
11 Espanyol €50m €20m + €15m €85m
12 Real Sociedad €50m €18m + €20m €88m
13 Celta Vigo €50m €16m + €15m €81m
14 Celta Vigo €50m €14m + €15m €79m
15 Alaves €50m €12m + €12m €74m
16 Levante €50m €10m + €20m €80m
17 Leganes €50m €8m + €18m €76m
18 Deportivo €50m €6m + €12m €68m
19 Las Palmas €50m €4m + €9m €63m
20 Malaga €50m €2m + € 10m €62m

With the previous system the top clubs tv rights money and bottom clubs was huge with Real Madrid and Barcelona pocketing as much as €140 million each with their individual deals. While bottom clubs like Las Palmas could barely make €18 million in tv rights money.

EDU Team

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