European Club Association (ECA) has predicted a massive downfall in revenue across every European league. They predict European football clubs are set to lose as much as 4 billion euros ($4.5 billion) over the next 12 to 18 months due to covid-19 pandemic. Which has kind of forced UEFA to change how their revenue distribution system works for the next couple of years.
We take a look at how UEFA generate and distribute revenue among Champions League teams and what will be the share for 2020-21 season.
How 2020-21 UEFA Champions League Revenue Will Be Shared?
Before we get into virus impacted 2020-21 season, we must review how UEFA’s normal revenue generation and distribution setup worked. At the start of 2019-20 season UEFA announce record €2.04 billion to be shared between Champions League clubs. UEFA worked on a system which ensure guaranteed, fixed, performance and historic payments to clubs and how they finish in the season’s champions League.
2019-21 Champions League Revenue Distribution:
UEFA were expected €3.86 billion in total gross commercial revenue from their club competition like Champions League, Europa League and Super Cup.
From €3.86 billion, €295m is kept by UEFA for admin and organization cost. Another 7% (€275.5m) is kept as solidary payments. Another 6.5% is kept by UEFA for European football investments in developing regions. the rest €2.55bn is divided into three parts €2.04 billion is distributed between Champions League clubs, €510m for Europa League and UEFA Super Cup.
Revenue distribution begins at the playoff stage of UEFA Champions League. A total of €30m is distributed between clubs who get eliminated at playoff stage (€5 million each)
From the group stage onwards UEFA has put together a system where clubs get paid guaranteed payment + performance based payments + TV money share.
Of the €1.95bn allocated for group stage followed system is used to distribute the revenue.
- 25% allocated guaranteed payment to every club in group stage (€488m)
- 30% allocated as “Fixed Payments” (€585m)
- 30% will be distributed on the basis of coefficient rankings last 10 year performance (€585m)
- 15% allocated as market pool which is proportional value of each TV market clubs coming from. (€292m)
Below table shows how much a club can earn for their UEFA Champions League campaign. Starting from playoffs to reaching the finals.
|Stage||Prize Money ($)|
|Playoff Bonus||$5 million each to 10 clubs who lost in playoffs and failed to make it to group stage.|
|Participation Bonus||€15.25 million Guaranteed to each of the 32 clubs in group stage.|
|Performance Bonus||€2.7 Million for every win in group stage, €900,000 for draw.|
|Round of 16||€9.5 million each for 16 clubs in round of 16.|
|Quarterfinal||€10.5 million for each of the 8 quarterfinalists.|
|Semifinal||€12 million each for all semifinalists|
|Runners-up||€15 million for losing team in the final|
|Potential Total||The eventual winners can make around €60m to €75m in Fixed payment pot plus €30 to €50 million in Market pool money depending where they clubs is from.|
So if we look at numbers over the last 6 years, Champions and runners-up have been clearing more money with every passing season than before. Madrid got around €57.4 million for winning 2014 champions league while Liverpool cleared €111m in 2019. However it alot depend on what country the club comes from. English clubs generally get bigger Market Pool and in some cases if only 1 club from a country goes far in the competition for example Juventus in 2015 (they get bigger chunk of market pool money for that league).
Now below table shows revenue distributon by UEFA to Champions League clubs in a single season. The table below is official released document by UEFA so its as authentic as it gets.