Swiss Ramble Profile picture
Sep 10, 2018 15 tweets 9 min read Twitter logo Read on Twitter
Prize money for UEFA club competitions significantly increases in 2018/19, including a new coefficient ranking payment that better rewards historically successful clubs rather than those with larger national TV rights deals. Some thoughts follow on Champions League distribution.
The amount distributed to clubs in UEFA Champions League (group stage onwards) will rise €681m (54%) from €1.269 bln to €1.950 bln in 2018/19. This is split: participation €488m (25%), performance €585m (30%), TV pool €292m (15%) and coefficient rankings €585m (30%).
In 2018/19 each of the 32 clubs qualifying for Champions League group stage gets €15.25m plus €2.7m for a win and €900k for a draw. Additional prize money for each further stage reached: last 16 €9.5m, quarter-final €10.5m, semi-final €12m, final €15m and winners €19m.
2018/19 Champions League payments will significantly increase over 2017/18, especially in the early stages, eg 80% for group performance, compared to “only” 23% for the winners. The maximum amount a club could earn (excluding TV pool & coefficient) is up from €57.2m to €82.5m.
The minimum a club will earn from Champions League (excluding TV pool) has increased, due to addition of UEFA coefficient ranking, with Real Madrid guaranteed €51m (participation €15.25m + coefficient €35.5m). English clubs: #MUFC €46m, #MCFC €40m, #LFC €39m & #THFC €31m.
UEFA coefficient is based on performances over 10 years, including bonus points for winning UEFA tournaments. The €585m is divided into shares with each worth €1.108m, so highest ranked club gets €35.5m and lowest €1.1m. English rankings #MUFC 5, #MCFC 14, #LFC 15 & #THFC 25.
This new revenue distribution method clearly benefits traditional big clubs like Real Madrid and Barcelona at the expense of clubs from countries with large TV pools (i.e. England and Italy). Lack of qualification has hurt #CFC and #AFC, who are ranked 6th and 9th respectively.
However, the overall increase in Champions League prize money (from booming TV and commercial deals) will mean that English clubs will still earn more in 2018/19 than 2017/18, assuming similar performance.
As a reminder, estimated English clubs earnings for 2017/18 based on old distribution are: #LFC €78m, #CFC €64m, #MCFC €62m & #THFC €60m. TV pool: (a) half based on position in previous season’s Premier League; (b) half based on current season’s Champions League performance.
If we assume same progress as 17/18, we can estimate amounts earned under new system in 18/19. I have increased England TV pool by 30% (per new BT Sports deal), then taken a third (per split of TV pool & coefficient). Note: this number is not certain, but used for illustration.
#MCFC would earn €96m in 2018/19 compared to €62m in 2017/18 for reaching the quarter-finals, including €24m from the new UEFA coefficient (ranking 14th, but 11th best of teams that have qualified for this season’s Champions League).
#MUFC earnings would increase from €39m to €87m for reaching last 16, but this is a little misleading, as they only received half of TV pool in 2017/18, because they qualified by winning Europa League. However, they do benefit from their history, as they are ranked 5th by UEFA.
#THFC earnings would increase from €60m to €69m for reaching last 16, boosted by an excellent performance in group stage, but adversely impacted by a relatively low UEFA coefficient (ranking 25th, but 19th best of teams that have qualified for this season’s Champions League).
#LFC revenue would have risen from €78m to an incredible €111m for reaching the final, mainly due to the hefty increases in prize money, but also thanks to a relatively high UEFA coefficient (ranking 15th, but 12th best of teams qualified for this season’s Champions League).
It should be emphasised that these are only estimates, particularly the assumption around the English TV pool, while revenue will also clearly depend on progress in this season’s competition, but hopefully the examples do make clear the differences in the new distribution system.

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More from @SwissRamble

Oct 4, 2018
#RealMadrid 2017/18 accounts cover a season when they finished third in La Liga, but won the Champions League for a third consecutive year, the fourth time in 5 years, plus the Club World Cup and European and Spanish Super Cups. Some thoughts in the following thread.
#RealMadrid profit before tax increased by €17m from €26m to €43m (profit after tax up €10m from €21m to €31m). Revenue (Madrid’s definition) rose 11% (€76m), their largest rise since 2000, to a record high of €751m, while profit on player sales was 4% (€2m) up at €54m.
All #RealMadrid revenue streams increased with the largest growth in marketing €41m (16%) to €295m, followed by international & friendly matches €13m (17%) to €100m, broadcasting €13m (8%) to €178m and membership fees & stadium revenue €8m (5%) to €174m.
Read 39 tweets
Sep 25, 2018
Manchester United are the second Premier League club after #MCFC to publish 2017/18 financial results, covering a season when they were runners-up in the league and FA Cup, but were eliminated by Sevilla in the Champions League last 16. Some thoughts in the following thread #MUFC
#MUFC profit before tax down from £57m to £26m, mainly due to higher player costs, as wage bill shot up £32m and player amortisation rose £14m, while revenue only up £9m. Tax bill increased from £17m to £63m as a change in US corporate tax rate led to a £49m non-cash write-off.
#MUFC revenue only grew £9m (2%). Only meaningful increase was broadcasting, up £10m (5%) to £204m. Commercial income was basically flat at £276m, while match day dropped £2m (2%) to £110m. Profit on player sales rose £7m to £18m.
Read 39 tweets
Sep 17, 2018
Ten years after Sheikh Mansour acquired the club, Manchester City’s 2017/18 financial results covered a season when they won the Premier League in some style, won the League Cup and reached the Champions League quarter-finals. Some thoughts in the following thread #MCFC
#MCFC profit before tax up from £0.1m (£1.1m after tax) to £10.4m, as previous season was adversely impacted by change in year-end resulting in an extra month’s costs with minimal revenue uplift. Revenue rose £27m (6%) to £500.5m, only second English club above £0.5 bln.
All #MCFC revenue streams up: commercial income rose £14m (7%) to £232m; broadcasting increased £8m (4%) to £212m; and match day was £5m (9%) higher at £57m. Profit on player sales was up £4m to £39m.
Read 37 tweets
Sep 4, 2018
Atletico Madrid’s 2016/17 accounts cover a season when they finished third in La Liga and reached the semi-finals of the Champions League under coach Diego Simeone. Some thoughts on their finances in the following thread #Atleti #AúpaAtleti #AtleticoMadrid
#Atleti profit before tax improved from €1m to €5m (profit after tax up from €4m to €5m), as revenue rose €48m (21%) to a record high of €281m, though profit on player sales fell €7m to €37m. No repeat of the 15/16 €27m extraordinary charge linked to stadium development.
The main driver of the #Atleti revenue increase was the La Liga TV deal, up €31m to €99m, though Champions League TV money was €9m lower at €61m. Commercial rose €22m (41%) to €76m, while match day was €4m (11%) higher at €45m.
Read 41 tweets
Aug 27, 2018
A long-suffering Newcastle United fan asked how their financial performance compared with Tottenham Hotspur since Mike Ashley bought the club in July 2007, so here’s a few thoughts in the following thread #NUFC #THFC
Both #NUFC and #THFC have focused on profit. #NUFC have essentially broken even during Ashley’s tenure with £4m aggregate profit, while #THFC have reported an impressive £215m. Worth noting that £188m of that came in last 4 seasons, when #NUFC had a £47m loss in Championship.
#NUFC revenue has fallen by £1m since Ashley’s arrival from £87m to £86m, deflated by the lower money in the Championship. In the same period, #THFC revenue has tripled, rising £203m from £103m to £306m. In fairness, #NUFC 2018 revenue will be much higher (£175-180m estimate).
Read 17 tweets
Aug 23, 2018
As talk intensifies of a potential move of Arsenal’s chief executive, Ivan Gazidis, to Milan, I thought it would be interesting to look at how the club’s financials have developed since he arrived in January 2009. Some thoughts in the following thread #AFC #Milan #ACMilan
#AFC revenue has grown by an impressive £198m under Gazidis, only outpaced by #MCFC £366m & #MUFC £303m in absolute terms. However, this was the 2nd smallest % growth of Big 6. Furthermore, 2017/18 revenue is likely to be £40-50m lower, due to not qualifying for Champions League.
Analysing #AFC £198m revenue growth under Gazidis, most (£125m) is from TV, due to central Premier League deals. As Warren Buffett said, “a rising tide lifts all boats”. Commercial up £69m, but this was a slam dunk after long-term sponsorships linked to stadium funding expired.
Read 12 tweets

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