Globo could lose the next FIFA World Cup TV broadcasting rights

As reported by several Brazilian specialized websites, Globo will not pay the USD 90 million fee for the TV rights of the coming 2022 FIFA World Cup, to be held in Qatar. According to the agreement ran between Globo and FIFA, the payment must be made today.

According to the information reported by UOL Esporte, Globo does not intend to finish its deal with FIFA, but rather to renegotiate the fees values ​​in more accessible terms. Due to the refusal of FIFA, the Brazilian company asked the Swiss Justice to re-discuss the terms of the agreement and, if it does not get a favorable resolution, it could lose the rights to broadcast the next World Cup in Brazil.

The current TV rights agreement between Globo and FIFA has been applied since 2015, and ends in 2022, and was ran for a total of USD 600 million, to be paid in nine fees, one of which expires today. The deal includes not only the TV rights for the World Cups, but also other events held by FIFA, such as the Futsal World Cup and the U17 and U20 Women’s World Cups, all rescheduled because of the Coronavirus pandemic. The FIFA-Globo agreement does not include the football tournament broadcast of the Olympic Games.

In addition, Brazilian specialized websites also reported that Globo made a request this June 16th to the Rio de Janeiro Justice, so that sanctions are not applied to it for not paying the next fee, until it case is evaluated by the Swiss Justice. The company’s request was approved on June 23rd. Globo’s main arguments for not making the payment is the negative financial impact that the Coronavirus causes on media groups, as well as reporting that the FIFA competitions were rescheduled, and that caused damage to the company.