RIO DE JANEIRO, July 2 (Xinhua) -- Brazilian broadcaster TV Globo said Thursday it has rescinded its contract with the Rio de Janeiro Football Federation (FERJ) after Flamengo utilized a new federal law to stream a home match on social media.
Globo said the move breached exclusivity rights outlined in its contract with FERJ for the Carioca championship. Of the competition's 12 teams, 11 signed off on the deal, with Flamengo being the only exception.
"In Globo's understanding, the contract was violated yesterday, when FlaTV aired the match between Flamengo and Boavista live," read a Globo statement.
It added that, at the time the contract was signed, Brazilian law stipulated that the right to broadcast any match hinged on the consent of both clubs involved. According to the network, this meant that nobody could legally broadcast Flamengo matches under terms of its agreement with FERJ.
Flamengo say they are protected by a presidential decree issued last month, which established that Brazilian clubs may negotiate broadcasting rights for home matches individually if they don't have an existing contract. The order is valid for 120 days and may be extended by Congress.
According to Flamengo, more than 14 million people watched the 2-0 victory over Boavista on the club's YouTube channel on Wednesday.
Globo said it would continue to honor its financial commitment with Rio's clubs until the end of the year.
The value of the broadcast agreement with FERJ - which began in 2016 and expires in 2024 - is around 200 million U.S. dollars, according to the UOL news outlet. Flamengo, the reigning Brazilian Serie A and Copa Libertadores champions, did not sign the deal, believing they are entitled to more.
"Despite the decision to terminate the contract immediately, Globo is ready to make the remaining payments this season, in the name of its historic partnership with football and its good relationship with the teams," the broadcaster said.
"But [we believe] that football will only be able to overcome its countless difficulties with planning and legal security for those who invest large amounts in this business that is so important for Brazil and for Brazilians," it added. Enditem
