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Spain sets new laws to divide revenue from television rights



AFP/Getty Images

Barcelona and Real Madrid will no longer rake in massive revenue from individual television deals after a new law was passed in Spain today.

The new rules will take effect in 2016 and will split revenue from television deals evenly between the 20 clubs in La Liga.

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Ten-percent of earnings will go to teams in Spain’s second division as well.

Previously, Barcelona and Real Madrid had negotiated their own television deals, earning nearly three times more than other clubs in La Liga.

A certain percentage will be divided based on factors such as position in the league and ability to generate funds through broadcasting, which means the bigger clubs will still make more money than smaller clubs, but by a much lesser margin than previous years.

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Spanish sports ministry spokesman Miguel Cardena said the deal is more similar to the Premier League’s television deal, stating “You just have to see that last year the club that came last in the Premier League earned more than [current Spanish champions] Atletico Madrid.”

The deal will regulate television rights for La Liga and Spain’s second division, as well as the Copa del Rey and Super Cup competitions.