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The approval of the Royal Decree-Law 5/2015, of April 2015, brought some peace to the sector, by regulating the joint selling of football broadcasting rights. This has been the theme of our previous blog posts (developments in the centralized selling of football rights and the Spanish Competition Authority [CNMC] issues its recommendations on football broadcasting rights).

First, Royal Decree-Law 5/2015 established the obligations of football clubs to transfer powers of joint marketing of broadcasting rights to the Spanish Professional Football League and the Royal Spanish Football Federation. This obligation also involved a new system to distribute the income generated, with corrective mechanisms that limit–or at least try to limit—the differences between clubs.

In addition, it established that each club committed to a number of mandatory contributions to promote professional competition and amateur football, as well as for associations of football players, arbitrators, coaches and physical trainers, although it did not regulate the details of how to make these contributions.

This last point continues to be developed with the approval on January 12, 2018, of the Royal Decree 2/2018, concerning certain regulations implementing Royal Decree-Law 5/2015. It mainly regulates contributions to promoting sports in clubs and entities affiliated to the Spanish League, through a percentage of the income derived from exploiting broadcasting rights. The contribution to the Compensation Fund has been set at 3.5% (90% of which will be allocated to the clubs that are relegated from the Premier League to the Second Division, and the rest to the clubs that are relegated from the Second Division).

It also regulates the contribution to fostering amateur football, by requiring the clubs to allocate 1% of broadcasting revenue for this purpose. In addition, it plans a contribution of up to 1% to the Spanish National Sports Council—allocated to the social protection of elite athletes and to help to fund athletes participating in international competitions—and another 0.5% contribution to social protection in women’s football and in Second Division B, as well as for funding the formation of football associations.

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Blog de Cuatrecasas, uno de los referentes en la abogacía de negocios en España y Portugal. Representamos a algunas de las principales empresas cotizadas de ambos países y asesoramos a nuestros clientes en operaciones estratégicas, así como a inversores extranjeros interesados en el mercado ibérico

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