Activity Plan and Budget 2022-23 I Liga Centralização

AND BUDGET

ACTIVITY PLAN

INDEX

PAGE 5

1. MESSAGE FROM THE PRESIDENT

PAGE 7

2. STARTEGIC POSITIONING

PAGE 13

3. ACTIVITY PLAN 2022-23

PAGE 17

4. MACRO SCHEDULE OF ACTIVITIES 2022-23

PAGE 21

5. PROPOSED OPERATING

BUDGET 2022-23

1. MESSAGE FROM THE PRESIDENT

A new reality!

The Centralisation of Media Rights was both a fight and an achievement of the present Board of Liga Portugal, which has always seen this measure as an important step towards the sustainability of our Sports Societies.

The Decree-Law no. 22-B/2021, which determines that the ownership of television and media broadcasting rights will be centralised from the 2027-28 season, in a process that will require a great effort from all parties, towards what is already a consolidated reality at a European level. And with proven results and benefits.

The company Liga Centralização was created to set up a proposal for the future sales model of television and media rights, and other audiovisual content, of professional football competitions in Portugal.

Another important partner in our activities is the National Association of Football Coaches (ANTF), a body that collaborates with the League in order to allow football coaches to unite and have an active voice in defending professional

football, meaning that throughout the season webinars will be held with the clubs' coaches.

In this sense, the work already initiated will have the contribution of all the sports societies involved in professional competitions, managing the risks associated with the arbitration of schedules and market values, in a shared model of communication and in a spirit of true co-management which, we are certain, will lead to a proposal to be presented to the Government that will boost the competitiveness of professional competitions, strengthen the creation of value of the sports societies and reduce the disparities that the current model inflicts on them, by reducing them as far as possible.

The notoriety associated with each brand, each badge and each sports society is an asset that, although indelible and untouchable, will be an absolutely critical factor in managing the increased visibility and global notoriety of this industry.

It is our firm belief that the Centralisation of Media Rights is a decisive element of the wealth creation strategy

in the sector, boosting the competitive advantages of each club towards the development of a model whose final value is greater than the mere sum of the individual parts.

We will implement everything that depends on us, assuming that, in such a complex and difficult context as the one we live in, we all deserve the due and fair consideration, within a global framework of governmental support and incentive policies that have been distant from this industry, in contrast to what we witness is the reality of other relevant social and economic sectors.

We are also working on this while strengthening ties with the new Executive so that the influence of our Football is increasingly reflected in the national economy.

We know the steps to take and the markets to explore in the Centralisation of Media Rights, towards the so-much desired new reality.

02 STRATEGIC POSITIONING

2.1. OBJECTIVE OF LIGA CENTRALIZAÇÃO

It is intended that the Liga Centralização analyses and defines a future model for a centralised sale of media rights, and other audiovisual content, of the professional football competitions in Portugal, as well as the subsequent sale thereof.

Additionally, it is also the objective of the Liga Portugal Board - one of the parts that constitute the organisational pyramid / corporate bodies - to bring other issues under discussion in the Liga Centralização, namely, the new business model for the League Cup, among other aspects that may be handled on a centralised basis.

2.2. MISSION AND VALUES

Credibility, Aggregation, Talent and Spectacle - this is the only way Liga Portugal knows how to succeed.

The Decree-Law of March 2021 requires the centralised sale of media rights from the 2028-29 season, so it is necessary to start working now.

Based on this premise, Liga Portugal Centralização was created, as a guideline for the Presidents' Summit on the 2nd of September 2021, with a view to anticipating this fundamental goal for the growth and development of Portuguese Professional Football.

2.3. STRATEGIC OBJECTIVES

The main strategic objectives - presented at the 7th Presidents' Summit - which shall guide the day-to-day work of Liga Centralização will be as follows:

01

Defining the general conditions for content usage

02 Models and criteria for global revenue sharing

03

Defining the models and conditions of the sales packages

04

International expansion strategy

05

Evaluation of the scenarios to anticipate the centralisation process

06

Coordination with the Competition Authority

07

Development of an action plan to improve the piracy control

08

Strategy to improve the audiovisual product and branding of competitions

2.4. MANAGEMENT MODEL

The Governance model ensures compliance with the strategic objectives through an integrated management system as a guarantee of the efficient use of financial, human and property resources.

GOVERNANCE OF THE ORGANISATION

The Board of Directors/Administration and the Organisation's Management Body.

MANAGEMENT/ADMINISTRATION

The Management/Administrative Body consists of its President and 10 members:

• PRESIDENT: Pedro Proença.

• MANAGERS / ADMINISTRATORS:

Domingos Soares de Oliveira; Hugo Nunes; André Bernardo; Cláudio Couto; José Eduardo Viamonte; Joel Pinho; António Gaspar Dias; Mariano Maroto Lopez; Tiago Madureira; Rui Pereira Caeiro.

MEETINGS OF THE BOARD OF DIRECTORS/ADMINISTRATION

The Organisation's Board of Directors/Administration holds ordinary meetings on a monthly basis and extraordinary meetings whenever convened by its President.

OPERATIONAL TEAM AND SECRETARYSHIP

Multidisciplinary operational technicians and administrative staff members are selected according to the Strategic Plan defined at the beginning of each season.

At the top of the pyramid, on a strategic level, we have the Presidents’ Summit. Then, at a second level, the reporting level, there is the Liga Portugal Board of Directors/Administration and, at its base, Liga Centralização which comprises eleven members. This group includes six clubs from the Liga Portugal bwin (FC Porto, Sporting CP, Vitória SC, FC Arouca, SC Braga and SL Benfica), as well as two sports societies from the Liga Portugal SABSEG (FC Penafiel and Académico de Viseu). In addition to these clubs, the Board of Directors will also include the President of the Liga Portugal and two members of the Executive Management of the Liga Portugal, Tiago Madureira and Dr. Rui Caeiro, making up the eleven members mentioned above.

President of Liga Portugal, five first-tier Sports Societies, three second-tier Sports Societies, one FPF Board Member

LIGA

BOARD

PRESIDENTS' SUMMIT

LPSABSEG clubs LPBWIN clubs

3 ACTIVITY PLAN 2022-23

3.1. TRANSVERSAL ACTIVITIES

As part of Liga Centralização, various initiatives such as Board of Directors/ Administration meetings, meetings with different stakeholders and other working meetings will take place. In parallel and seeking to achieve the objectives outlined for the next season, more specific activities will be carried out, such as the analysis of market research and business cases, among others.

3.2. DATA COLLECTION, ANALYSIS AND SYSTEMATISATION PROCEDURES

Following these activities, there is an urgent need to systematise information to meet the strategic objectives outlined. This initiative will have as its first delivery the presentation of a proposal for a centralised sales model until the end of the 2025-26 sports season.

In this sense, the operational team is responsible for collecting, analysing and systematising information, resulting from the activities planned on a weekly basis, from the actions determined in the work meetings, and also for strategic reporting to the other Society and Governance bodies (Liga Portugal's Board of Directors and the Presidents' Summit).

3.3. COORDINATION OF STUDIES

Since the issues dealt with in the work forums are sometimes complex and require in-depth analysis, it is essential to have specialised services to carry out market studies, evaluate possible scenarios and recommend solutions.

This way, the Liga Centralização team coordinates and analyses studies - usually conducted by external entities/partners (e.g. EY) - whose objectives are the

systematisation of complex information, the study of the feasibility of solutions and support in strategic decisions.

3.4. SUBGROUPS

In order to address the strategic objectives defined and to better structure the work dynamics, it was proposed, based on each member's area of expertise, to divide the members of the Board of Directors/Administration into three subgroups: legal, financial and commercial & content. In a more operational and periodic setting, each of the groups will address the working topics already identified and other key issues in the ongoing exercise of studying the future sales model. Each group will also have the operational support of the Liga's teams and external consultancy if needed.

3.5. OPERATIONAL ACTIVITIES

The operational team is responsible for monitoring, managing, and organising meetings arising from the activities of Liga Centralização - Board of Directors/ Administration, subgroups and various stakeholders - by sending out notices of meetings, drafting/monitoring prior documentation, their follow-up and drafting/monitoring the minutes.

4 MACRO SCHEDULE OF ACTIVITIES 2022-23

3.1 Transversal Activities

3.2 Collection, Analysis and Systematisation Procedures

3.3 Coordination of Studies

3.4 Working Subgroups

3.5 Operational Activities

5.1. INCOME

For the 2022-23 season, it is expected an income generation in the amount of €3,000,000.

This income derives from the contract to be established that contemplates the broadcasting rights of the League Cup.

Liga Centralização will continue to work on the development of a proposal for the future model of centralised commercialisation of television and media rights, and other audiovisual content, which will result in its subsequent sale and respective generation of income.

5.2. EXPENSES

The expenses of Liga Portugal Centralização are mainly due to costs incurred with the League Cup, with its structure and services, as well as with the coordination of specialised studies and consultancy on media issues.

Regarding the League Cup, Liga Portugal Centralização will channel all the funds obtained with the sponsorship contract to Liga Portugal, which will then distribute the funds to the sports societies, as stipulated.

In relation to structural costs, these will be totally covered by Liga Portugal Centralização, with the majority of the technical staff responsible for the development of the projects outlined in the current business plan belonging to Liga Portugal.

5.3. OPERATING RESULT AND FINAL COMMENTS

For the 2022-23 financial year, the year in which the Liga Portugal Centralização starts its activities, the budget proposal is in financial deficit.

However, and as this sports season is crucial for the implementation of the future model of centralised sale of television and media rights, and other audiovisual content, of professional football competitions in Portugal, Liga Portugal Centralização will focus on the development of studies, as well as channelling a part of its technical team to the development of these projects. Thus, in this sports season, it is expected that the operating result will be negative by €273,900.

5.4. SUMMARY STATEMENT OF THE OPERATING BUDGET

CONTACTS

Services are available on weekdays from 9 am to 7 pm

LIGA PORTUGAL HEADQUARTERS

Address: Rua da Constituição, nº 2555

4250-173, Porto Tel.: 22 834 87 40 | Fax: 22 834 87 56

LISBON OFFICE

Address: Torre Monsanto - Rua Afonso Praça, nº 30, Piso 10

Miraflores, 1495-061 Algés

POINTS OF CONTACT:

General geral@ligaportugal.pt

Finance Department financeiro@ligaportugal.pt recursos.humanos@ligaportugal.pt

Competitions Department competicoes@ligaportugal.pt

Legal and Contract Registration Department juridico@ligaportugal.pt registo.contratos@ligaportugal.pt

Marketing, Commercial & Business Development Department marketing@ligaportugal.pt

Content & Media comunicacao@ligaportugal.pt

Technology Department tecnologia@ligaportugal.pt

DADE and Protocol dade@ligaportugal.pt protocolo@ligaportugal.pt