How UEFA’s increased European prize money will boost Scottish clubs

[ian1964 10,563]

UEFA has announced increased prize money for the Champions League and Europa League and Scottish clubs could benefit from millions of pounds in revenue just for reaching the group stage of continental competition.

 

The European governing body confirmed the payouts to competing teams in the next ‘cycle’ of competition, covering the next three seasons.

 

With an increase in broadcasting revenue and the creation of a single pot of revenue across both competitions, the rewards for reaching the group stage of either competition would have a significant impact on the finances of Scottish clubs.

 

Without factoring in television money, a Scottish team reaching the Champions League group stage would net at least €14m even if they didn’t win a point. Participation in the Europa League group stage would mean a payment of at least €4.11m regardless of results at that stage.

 

STV has looked through the UEFA plan and what Scotland’s representatives in Europe will be playing for from next season.

 

 

Champions League

 

What Celtic earned last time

 

Celtic’s last participation in the Champions League group stage was in the 2013/14 season, when they won one and lost five of their matches against Ajax, AC Milan and Barcelona.

 

That group earned the club a total of €17.6m from UEFA. The participation bonus for reaching the group stage was €8.6m, the solitary win against Ajax netted a further €1m and the market share of broadcasting money added €8m to the pot.

What the same performance would net under the new scheme

 

Under the new distribution model, the group stage participation bonus increases from €8.6m to €12m. Performances are further rewarded with a win paying €1.5m (up from €1m) and a draw continuing to earn €500,000.

 

If the Scottish champions repeat Celtic’s performance they would see a jump from €17.6m to at least €21.5m in group stage earnings, assuming the broadcasting money is no less than the previous years.

Minimum earnings for reaching the group stage

 

If this year’s Scottish champions progress to the group stage of the 2015/16 Champions League then they will have done so by progressing through two qualification rounds and a play-off.

 

Elimination at the play-off stage would see the club earn €3m as well as the consolation of a place in the Europa League.

 

Success in the play-off would net €2m under the new model as a bonus for winning the tie.

 

The team would then bank €12m for participation in the group stage. In addition, a share of the broadcast market pool would be paid. That figure is not known as yet would be expected to be a significant increase on the €8m figure from the previous cycle.

 

That would mean a guaranteed €14m before a ball is kicked in the group stage and every point gained would add €500,000, with a broadcast payout of well over €8m to added.

Knockout stages

 

Further progress would bring more reward with prize money of €5.5m for reaching the last 16, €6m more for quarter finalists, €7m for the last four and €25.5m shared between the finalists, in addition to the market pool broadcasting money for the later stages.

Play-off exception

 

UEFA have introduced a new clause stating that a team eliminated from the competition in the play-off round would receive 10% of their nation’s market pool payment. However, with Scotland’s representative being included in the English TV market pool, UEFA have confirmed to STV that the payment would not apply to the Scottish team in the same way as other nations.

 

However, there is a consolation payment of €250,000 for any domestic champion who does not reach the group stages.

 

 

Europa League

 

What Celtic are set to earn this year

 

Figures for this year’s Europa League have yet to be confirmed by UEFA but, with the same distribution model as previous seasons, we can calculate roughly how much Celtic will bank.

 

The participation bonus for reaching the group stage is €1.3m. Celtic earned two wins and two draws which will pay a further €600,000 and as group runners up a further €200,000 is paid out.

 

On the pitch, the team lost to Inter Milan in the last 32 but the consolation for reaching the last 32 is further €200,000.

 

UEFA would then add broadcasting revenue from the market pool. Exact figures aren’t available but based on previous years we would estimate that Celtic’s share would be €1.4m.

 

So, Celtic can expect €2.3m for their Europa League participation this season with an estimated €1.4m of TV money to be added.

What would be earned under the new model

 

The headline figure is the participation bonus for reaching the group stage, up to €2.4m from €1.3m. Payments for points are also up, with the new model rewarding a win with €360,000 and a draw with €120,000. So a Scottish team matching Celtic’s results from this season would bank another €960,000.

 

The group runner-up bonus is increased to €250,000 and the prize money for reaching the last 32 is up to €500,000.

 

As with the Champions League, the broadcast market pool for the next cycle isn’t known but there would be an increase on the €1.4 expected this season.

 

So in comparison to the last cycle, matching Celtic’s achievement of this season would earn a minimum €4.11m with broadcast money still to be added.

Payments for qualifying rounds

 

Scotland will have three teams in the qualifying rounds of the Europa League next season and every step on the way to the competition proper will bring rewards.

 

Teams will receive €200,000 for elimination in the first qualifying round, €210,000 for the second round, €220,000 for the third qualifying round and €230k for exiting via the play-offs

 

http://sport.stv.tv/football/315702-how-uefas-increased-european-prize-money-will-boost-scottish-clubs/

[barca72 440]

We need to be in the CL two seasons from now otherwise we may never catch them.

[calscot 0]

We need to be in the CL two seasons from now otherwise we may never catch them.

 

I can't see this "never catch them" point of view. Football wealth is very short term as it basically goes on paying the same players more money. The money is rarely invested, just burned. We're always a season away from disaster and only a few seasons away from catching up.

 

If catching up was virtually impossible then 9IAR and our CL participation would have put us well out of sight of them forever, but that didn't happen.

[compo 6,466]

do we not have some kind of European ban to serve

[der Berliner 3,424]

I can't see this "never catch them" point of view. Football wealth is very short term as it basically goes on paying the same players more money. The money is rarely invested, just burned. We're always a season away from disaster and only a few seasons away from catching up.

 

If catching up was virtually impossible then 9IAR and our CL participation would have put us well out of sight of them forever, but that didn't happen.

 

Very much so. One simply cannot discount quite a few variables that come into play as well, like managers, quality of players and opposition etc..

 

European money should come as a bonus. What we could do now and for the time being to improve finances is arranging friendlies that will draw a sizeable amount of supporters.

 

do we not have some kind of European ban to serve

 

Since we do not qalify for Europe for next season, that is of no concern any longer. UEFA wants 3 years of business reports from clubs/companies. 2012/13, 2013/14 and 2014/15 would be enough, we can qualify for Europe at the end of summer 2016 at the earliest.

Edited April 2, 2015 by der Berliner

[RANGERRAB 3,385]

do we not have some kind of European ban to serve

 

As I understand we need theee years of audited accounts before we get back into European competition. Since the newco was set up we've had two sets of accounts so presumably by the end of next season we'll have had the third set and would be going for a Euro spot either via league position(providing we're in the top division) or via SC.

Thats how I understand it but maybe either Bd or FS could clarify

[der Berliner 3,424]

Incidentally, I was wondering whether Green couldn't have played it better and used an already existing - if "empty" - company to buy the assets et al, bypassing this hurdle. He probably needed one "running" a football club though.