Skip to main content

City could earn more in Europe next season

The format of UEFA’s competitions will change next season with more teams taking part and more games being played.   The new distribution formula is complex and not easy to understand, but it does look like another case of ‘to him who hath shall be given’.

One very important point is the quiet revolution in the distribution mechanism, as two of the previous elements, namely the TV pool and UEFA coefficient, have been combined into a new “value pillar”.

The maximum amount a club could earn in prize money in the Europa Lague, including the participation fee, has increased by €9m (40%) from €24m to €33m. Basically, if a team wants to earn good money in this competition, it needs to go deep, as the money earned in the latter stages is quite high.

In the Conference The maximum amount a club could earn in prize money, including the participation fee, has increased by €3m (20%) from €16m to €19m

Before we estimate what could be earned by a club next season, let’s remind ourselves of the income received in 2022/23. The highest amount unsurprisingly went to the eventual winners of the Champions League, namely Manchester City with €135m (£115m).

This comprised participation fee €15.6m, prize money €66.7m, UEFA coefficient €28.4m, TV pool €22.9m and final balance €1.2m.

If City were to repeat this feat in 2024/25, the Swiss Ramble estimates that their earnings would increase by €21m (16%) from €135m to €156m (£134m).  This would be made up of participation fee €18.6m, prize money €92.7m and value pillar €45.1m.

Perhaps the most worrying aspect of the new Champions League revenue distribution is the impact that it will have on competitive balance. The higher income is obviously great news for those who secure qualification, but the gap to those who do not have a place in Europe’s premier tournament will only widen.

Labels:

Comments

Post a Comment

Popular posts from this blog

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
1 comment
Read more

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day income is
Post a Comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to depl
Post a Comment
Read more