Facebook Pays Real Madrid and FC Barcelona Top Dollars to Create Videos

What:  Facebook has signed contracts with nearly 140 media companies and celebrities to create video for Facebook Live. Sports teams and players, particularly soccer, are among the highest paid.
Why it matters: Streaming rights  for top sports and soccer properties are among the most coveted by Facebook and other social media companies like Twitter. Broadcast advertising dollars are starting to siphon over to online video advertising and the trends is likely to accelerate.

PkyX6ctOf the roughly US$50 million Facebook has agreed to invest, athletes, sports teams and sports media companies are set to collect about US$4.4 million in payments, according to a document reviewed by the Wall Street Journal. Soccer, in particular, figures prominently on Facebook’s list of contracts, demonstrating the company’s ambitions to give Facebook Live a global appeal. However, in the United States soccer, particularly for the Hispanic population, soccer has a very high appeal.

The highest-paid sports company, FC Barcelona, will receive approcimately US$1.03 million from May through March of next year, making the Spanish soccer team the 18th highest-paid on Facebook’s list of media companies, athletes and celebrities.

Barcelona’s rival, Real Madrid, is to receive about US$917,000 to produce live video. Arsenal Broadband Ltd., which operates Arsenal’s media and digital rights, has a contract for about US$349,000. Manchester City, another English soccer team, is to receive US$221,000.

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Barcelona drew in more than 500,000 views for a live video press conference with new player André Gomes and about 340,000 views for a recent training session.

Individual soccer players are receiving payments, too. Spanish goalkeeper Iker Casillas is set to collect about US$211,000, while American star Alex Morgan is slated to bring in about US$115,000. Ricardo Kaká, a Brazilian player with Major League Soccer’s Orlando City SC, is set to receive about US$49,000.

Facebook has signed contracts with nearly 140 media companies and celebrities to create video for Facebook Live, The Wall Street Journal reported last month. It’s a game plan meant to ensure Facebook remains fully-stocked with quality live-streamed videos as the company decides how to compensate creators through more traditional means, like an agreement to share advertising revenue.

CHECK OUT: How Much Do Mexican Soccer Clubs Get Paid for U.S. Broadcasting Rights?


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