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Sanremo: How much would Rai lose without the Festival? A blow to advertising revenue

After the Ligurian Regional Administrative Court's ruling, many are wondering about the future of Sanremo. What is certain is that for Rai losing the Festival would mean giving up a golden goose. Let's do some math

Sanremo: How much would Rai lose without the Festival? A blow to advertising revenue

Sanremo It's not just music. In recent years it has become a huge money machine that Rai risks losing after Liguria Regional Administrative Court ruling which has established that the municipality will no longer be able to directly entrust the organization of the Festival to Rai, but from 2026 it will have to start a public race open to all operators in the sector. And there are already those who imagine a Sanremo 2026 on the Nove channel hosted again by Amadeus. 

While waiting for the obvious appeal, state television can for the moment console itself with the lack of reduction of the Rai fee is by 2025 it will return to 90 euros, despite the requests of Deputy Prime Minister Matteo Salvini. What is certain is that, in the event that Rai finds itself without the Festival, it would have to face a hole that is difficult to fill. In just 5 days, in fact, public television collects over 10% of its annual advertising revenue. 

How much is Sanremo worth to Rai?

Let's do some math. Saramo has not always been a "goose that lays golden eggs", in fact, the exact opposite. Just to give an example, in tre editions from 2009 to 2012, Rai spent over 20 million euros each year for the Festival, ending up collecting just over half of it and accumulating losses that weighed on the company's balance sheets. At that point it was decided to intervene with a "drastic cure" that over the years has proven to work.

THE2020 edition closed with a profit of 19 million, with 18 million costs and 37 million in turnover, that of 2021 with total costs of 17,4 million euros and revenues of 38 million of euros, that of 2022 with an expenditure of just over 17,3 million and an advertising revenue of 42 million, that of 2023 with over 17 million releases and advertising revenues of over 50 million.

We thus arrive at Sanremo 2024, the record-breaking edition: average share of 74,1% in the final, advertising revenue of 60,2 million, turnover of 205 million, of which 77 million of added value in relation to GDP, 1.300 jobs created. How much did Viale Mazzini spend on all this? 20 million, with a active balance of 40. These are the numbers of this year's Festival, the last one hosted by Amadeus who closed his five-year experience on the Ariston stage.

Sanremo 2026: How Much Rai Would Lose Without the Festival

Rai has yet to close its 2024 budget, but from the numbers we have reported it is not difficult to understand how much the Festival really means to the state television. In 2023, for example, Viale Mazzini earned from advertising 529 million euros, over 50 of which from Sanremo. The five days of the Festival, therefore, weigh for more than 10% on annual revenue. 

The Ligurian Regional Administrative Court's ruling

IS "direct assignment to Rai is illegitimate, by the Municipality of Sanremo, of the organization of the festival” for 2024-2025: except for the next edition, from 2026 it will be necessary to proceed “with a competition open to operators in the sector“. This is what we read in the 58 pages that make up the Liguria Regional Administrative Court ruling, a decision that could change the history of the TV event par excellence.

Rai is considering the appeal, but for the moment it is pouring water on troubled waters: “The administrative judges – Viale Mazzini reported – have confirmed the effectiveness of the agreement stipulated between Rai and the Municipality of Sanremo for the 2025 edition, as well as Rai’s ownership of the television format adopted for years for the organization of the Festival”: “there is therefore no risk that the singing event, in its current guise, could be organized by third parties”.

The TAR has ruled on the Just Entertainment appeal, a music publishing and production and implementation company for musical events and works, which in March 2023 had sent the Municipality of Sanremo an expression of interest "to acquire ownership of the economic and commercial exploitation rights of the Sanremo Festival" and of the related brand to take care of the organization and running of the Festival" as well as the related "promotion and dissemination activities".

Faced with the lack of response from the Municipality – which “reported that no assignment had been made in favor of Rai with reference to future editions of the Festival” – Je decided to turn to the Administrative Court.

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