Benfica warns of million-dollar losses due to the centralization of rights.

Benfica faces a million-euro loss of up to €15 million with the centralization of broadcasting rights and an open conflict with a North American investor

Benfica is at the center of a financial storm that threatens to shake the foundations of Portuguese football. Nuno Catarino, vice-president and financial director of the club’s SAD, revealed in an exclusive interview that the club could lose between €5 million and €15 million per year if the process of centralizing broadcasting rights proceeds as currently proposed. This scenario, described by the official as “unacceptable,” jeopardizes the financial stability and growth strategy of the Lisbon club.

“Based on the €220 million scenario pointed out by the League, we are talking about a probable loss of €5 million to €15 million [per year] for Benfica, depending on other variables. This is an unacceptable situation for us, and that is why our approach has been constructive — which is our natural stance — but at the same time assertive,” Catarino emphasized in statements to ECO, making the club’s discontent clear.

The financial manager also leaves room for dialogue, but with strict conditions: “We recognize that for the majority of national clubs, this centralization represents a very complex situation. There are already five or six clubs that have been unable to negotiate, or that have received very low offers because the operators are taking advantage of the situation. In 99 percent of decisions, the good of Portuguese football is the good of Benfica, and vice versa. Therefore, we advocate for a voluntary centralization, where clubs that wish to do so come together to achieve better conditions collectively. Benfica does not need this process to have good market conditions — but recognizes that for many other clubs, it makes perfect sense.”

The League has lowered its initial expectations, now aiming for a total value of television revenues between €220 and €225 million, far below the €300 million initially projected. Benfica, which already has substantial revenue from dynamic advertising in the stadium and the advertising contract with BTV, believes that mandatory centralization could harm its position in the market: “The total value of television revenues for the two seasons reaches €114.2 million if we include the dynamic advertising in the stadium retained by Benfica [€7.2 million for two seasons] and the advertising exploitation contract with BTV [€2.4 million]. Benfica does not need centralization to enhance its product. Therefore, a voluntary centralization or a postponement of the deadline itself would make much more sense, to allow time for the preparatory work to be done,” Catarino emphasized.

In addition to the immediate impact on revenues, Benfica continues to invest in diversifying its sources of income to reduce dependence on broadcasting rights. The CFO highlighted that the plan to reach 500 million euros in consolidated revenues during Rui Costa’s tenure will allow for a “much lower dependence on the athlete rights account” than currently exists.

At the center of this financial crisis is also the tense relationship with the American company Lenore Sports Partners (LSP), which holds over 5% of Benfica, SAD, a situation that has led the club to initiate legal proceedings. In May of last year, Benfica requested the annulment of the transfer of shares from Luís Filipe Vieira to LSP, claiming a right of first refusal that had not been respected.

“We filed the request in court, but we have not yet received a response. The process is underway. Lenore is currently the owner of the shares, which were assigned to it by the Court. We made the request based on the right of first refusal. The Court, in its initial decision, allowed the process to proceed without responding to our request,” explained Nuno Catarino, also revealing that contact with the qualified shareholders of LSP exists, but that the situation creates “friction”: “Any qualified shareholder has communication with us. As CFO, I have contact with them, and we know the people. It is not an institutional matter. It creates some friction because the first thing we tell them is that this situation may still change.”

To worsen the financial situation, this Monday marks the start of Benfica’s first five-year bond issuance in its history, amounting to €40 million. Despite the sum, Catarino assures that the club has enough cash flow to settle €50 million, excluding the possibility of using these funds for reinforcements in professional football: “We are going for a bond issuance of €40 million because we know we can pay the €50 million with the current cash flow. No. The transfer market is always managed independently of bond issuances, and it wouldn’t make sense for it to be any other way.”

This scenario reveals a Benfica that is struggling to protect its financial autonomy, face institutional challenges, and maintain competitiveness, while the future of broadcasting rights and the influence of external investors threaten to profoundly alter the national sports landscape. The battle is on, and the stability of the club may depend on strategic decisions that are likely to be crucial for Portuguese football.

This article first appeared on Apito Final.