Why Newcastle get less from the Champions League

Judging from the Newcastle fan interviewed on Radio 5 this morning the Toon Army enjoyed their night at the San Siro and were justifiably satisfied with their 0-0 draw. The financial rewards may not be as great.

Why will the Champions League not benefit Newcastle United as much as their rivals? The Geordies have basically been hammered for the crime of not playing in Europe for ages, so it does not really matter how good (or bad) the current team is, which means that Ashley’s legacy still lingers on.

Normally, the English clubs in the Champions League receive around four times as much as those playing in the Europe League, but Newcastle are the “Inbetweeners” this season. Their €30m revenue is stuck in the middle of the €60m average for the other three Champions League clubs and the €16m average for the Europa League.

Newcastle will receive a much lower TV pool than the other English clubs. Before a ball is kicked, their share will be €9.8m, which is only around half as much as Manchester City’s €18.3m.

To them that hath shall be given

The real damage to their earnings comes with the UEFA coefficient, where their €4.5m pales into insignificance compared to the other three English clubs: Manchester City €33.0m, Manchester United €28.4m and Arsenal €25.0m.

The UEFA coefficient payment was introduced in 2018/19, based on a team’s performance in UEFA tournaments over the past 10 years, including bonus points for winning tournaments.

This clearly benefits the established elite like Real Madrid, Bayern Munich and Barcelona, who all pick up well over €30m, having been rewarded in some cases by good performances many years ago.

Newcastle’s earnings are currently €30m, which is less than half of Manchester City’s €67m, and also miles below Manchester United €57m and Arsenal €56m.

That said, Newcastle will still do better financially than England’s representatives in the Europa League, where the current earnings are even lower: Liverpool €20m, Brighton €18m and West Ham €11m.

Aston Villa’s return to European competition is not going to generate a huge sum either, as they are currently on just €10m (participation €2.9m, UEFA coefficient €0.8m and TV pool €6.5m.

Results matter

Of course, all of the analysis to date has ignored prize money, so Newcastle could redress the balance by doing the business on the pitch. In the group stage, each win is worth €2.8m, while a draw earns €930k. There is more prize money for each additional stage reached: last 16 €9.6m, quarter-final €10.6m, semi-final €12.5m, final €15.5m and winners €20.0m. Therefore, the difference between winning and losing the final is €4.5m.

Newcastle will see good growth in their other revenue streams. Gate receipts will increase thanks to a packed St. James’ Park eagerly lapping up the prospect of elite European games, while the prospects for commercial deals and sponsorships will also be enhanced.

Clearly, Newcastle United will benefit financially from qualifying for the Champions League, which will help the club meet its FFP targets among other things. That’s good news, but the prize will not be as much as it might have been, given the way that the UEFA coefficient effectively punishes “newbies”.

Fulham requires big funding from owner

After lengthy delays, Fulham’s shiny, new Riverside Stand has finally opened, creating “a unique Thameside destination with first class facilities for supporters and partners on match days, as well as for the wider community year-round”. This ambitious project has increased Craven Cottage’s capacity by around 4,000 to 29,600, while it has also taken advantage of the club’s fantastic location and wealthy catchment area by including two Michelin star restaurants, a rooftop swimming pool, corporate hospitality and event space, all benefiting from views of the Thames. Chief executive Alistair Mackintosh observed, “Fulham is the sort of club that can have a business class or first class and have fans that turn left on a plane.” Indeed, there is also an exclusive members club – with a football season ticket as an optional extra. It’s fair to say that “the times they are a-changing”, as this is a long way from the traditional pie and a pint. However, in a world where clubs face the tw...

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...

A poor financial record, but new hope at Everton

I recently saw an amusing video online in which a group of Everton fans were rebuked in jest for being hopeful. Football fans in general tend to swing between excessive optimism and excessive pessimism, but for many it seems that moaning is in their bloodstream (Spurs fans probably take the trophy). However, Everton fans have had plenty to moan about on and off the pitch. Let’s hope that a new era is about to begin for this grand old club. Everton’s 2023/24 financial results covered a fairly momentous season, when they ended up 15th in the Premier League, though they would finished three places higher if they had not received an 8-point deduction for breaching the Premier League’s Profitability and Sustainability Regulations (PSR). It was a worrying time for Everton fans, as the club faced a “perfect storm” of issues, including large financial losses, an ever increasing debt burden, a challenging stadium build and the tortuous sale of the club. There were eve...

The Political Economy of Football V2

Search This Blog