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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.
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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 |
Champions | €20 million |
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. |
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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).
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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.