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Decision on the validity of the television broadcasting revenue sharing agreement
Real Madrid have been dealt a new legal blow in their ongoing battle with the Spanish league after Madrid’s Court of First Instance ruled to dismiss its lawsuit seeking the annulment of a television broadcasting revenue sharing agreement.
Spain’s league, La Liga, announced on Thursday that the Civil Chamber of the Court of First Instance No. 26 of Madrid has rejected in its entirety the request of the Royal Club to annul the agreement signed in August 2023 regarding the social impact component of the distribution criteria of audiovisual products.
The newspaper reported.Mundo Deportivo:“The Spanish court accepted the position of the Association and concluded that the agreement did not conflict with the legal system, as it was approved within the scope of the powers granted under Article 5.4 of Royal Decree Law No. 5/2015 and that it received two legal votes from the Broadcasting Rights Management Supervisory Authority and then from the Association’s Board of Directors, requiring votes.
“La Liga” explained in its statement that the established system maintains the audience evaluation standard for part of the allocations, while the other part relates to the degree of voluntary cooperation of each club in the procedures aimed at improving the audiovisual product, taking into account the number of views.
The statement states that the ruling confirms that Royal Decree No. 5/2015 gives administrative bodies of each category the power to adopt distribution standards, and that the legislator did not limit the concept of “creating resources through marketing television broadcasting” and did not require that the standard be limited only to the number of views.
The court also, according to the statement, emphasized that the system established by the association is based on incentives and depends on voluntary participation, therefore it does not deprive the clubs of ownership rights, as well as the possibility of using audiovisual rights, which are not included in the scope of mandatory transfer.
The court concluded by dismissing the abuse of rights claim, finding that the agreement had been accepted by the competent authorities with sufficient justification as to its purpose and operation mechanism, and that Real Madrid had not presented technical evidence to prove the specific financial damages claimed in its claim.
This decision came after the club sought civil justice following the dismissal of a criminal complaint in the same case. The association confirmed that the decision of the court of first instance is not final and it can be appealed within twenty working days from the date of notification.
