TV Globo sues Infront over soccer

Sharp devaluation of local currency affects rights values

By MARCELO CAJUEIRO

RIO DE JANEIRO -- Broadcaster TV Globo is suing German-based firm Infront for a cut in the 703 million reals ($240 million) it paid for the exclusive rights in Brazil to the 2006 soccer World Cup, claiming values have crashed over the past few years.

Globo pacted for open and pay TV, pay-per-view and Internet rights in 1998 as part of a larger deal, which included $220 million for the 2002 World Cup in Japan/Korea and extra coin for smaller leagues' rights.

"TV Globo requested the judge set a fair market value for the rights. It is important to stress that during 2002, sports rights values fell 57% in Brazil and in the world," a TV Globo spokeswoman said.

In the case of Globo's accord with Infront, the spokeswoman added, the sharp devaluation of the local currency against the U.S. dollar since 1998 had made the rights to the 2006 World Cup in Germany even more expensive.