MP amends Pele law

The Federal Government issued provisional measure 984/20, which determines that the rights to broadcast or reproduce sports matches belong to the club that owns the game. The MP amends the Pelé law, which before the change distributed the so-called “arena right” between the owner of the house and the opponent of the match.

The measure amends the Pelé law that previously distributed the so-called” right of arena ” between the owner of the house and the opponent of the match. With the change, the TV or radio station interested in showing the match will need to negotiate only with one team, and not two more. Apart from this hypothesis, the club itself will be able to broadcast the event, opening a new possibility of revenue source. According to the MP, the negotiation with the two teams will only take place if there is uncertainty as to the holder of the game controller.

Sponsorship

In addition to the benefits to the fan, sports entities will have more freedom to negotiate contracts with sponsors, as these will have greater visibility. The sponsor of the broadcast of a certain competition may also sponsor a club, displaying its brand on the athlete’s shirt.

Another change brought by the MP was the repeal of paragraphs 5 and 6 of Article 27-A of the Pelé law. The rules prevented television or radio stations from sponsoring or displaying their brands on athletes ‘ uniforms during competitions.

“The removal of locks like this in the legislation will ensure that more companies enter the market, generating revenue for entities, restoring the financial economic balance of the entire sports chain,“ explains Christiano Souto Puppi, director of the Department of football and defense of fans’ rights of the special secretariat of Sport.

Employment contract

The provisional measure also reduced, until December 31 of this year, the minimum time of employment contract of professional athletes from 90 days to 30 days, due to the COVID-19 pandemic. The change in the Pelé law, which follows the determinations of FIFA and the Brazilian Football Confederation (CBF), contributes to reducing economic losses of sports entities with the Prohibition of competitions, which have reduced revenues. By adding this change in the MP, the Federal Government already puts into force an article of a bill on the same subject, approved last Wednesday (17.06) in the Chamber of Deputies.

Benefits to athletes

Athletes also benefit from the change in the Pele law. From now on, they will directly manage, without the intermediation of unions, the resources obtained as image rights in competitions, which represent 5% (five percent) of the revenue from the exploitation of audiovisual sports rights.

Source: camara.leg.br

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