UEFA has announced several major changes ahead of the 2016-17 Champions League season and that includes increase in prize money plus 15% increase in TV market share for premier league teams. We take a indepth look at how UEFA distribute champions league revenue among teams across whole Europe.
Distribution system explained: The estimated yearly gross revenue from all UEFA competitions (Champions League, Europa League, UEFA Super Cup) is centralized and placed in 1 pot. UEFA estimates around €2.35 billion to be generated in 2016-17. From central pot 12% (€282m) is deducted by UEFA for Admin and competition costs another 8% (€199.7m) is used as solidarity payments to clubs and national FAs.
From remaining €1.86 billion another 8% is reserved by UEFA for European football and remain with UEFA. The rest €1.7187 billion is used to distribute among clubs in both Champions league and Europa League. For 2016-17 season €1.3189 billion is allocated for Champions League pot and €399.8 million for Europa League.
2016-17 Prize Money Fund: UEFA Champions League is by far the highest prize money paying competition in the world, yeah thats right even more than Football World Cup and for 2016-17 season we see another 10% increase compared to 2015-16 season where €1.257 billion was distributed among teams in champions league from playoffs to the winners. We take a look at this years champions league funds and how they will be distributed.
UEFA Champions League 2016-17 Prize Money Fund Distribution:
So how does the distribution of €1.3189 billion works among Champions League participant and teams who play in Champions League qualifiers but fail to reach group stages. The total prize money pool (€1.3189 billion) is divided into two portions.
- A). Fixed Amount (€761.9 million) awarded according to how the teams finished and performance related bonuses.
- B). Market Pool (€507 million). Part of UEFA’s TV income which is distributed according to which league the team comes from and number of matches played by a team in 2016-17 Champions League season.
|STAGE||Total Fixed Amount: €761.9 million|
|Playoff Bonus||€50 million distributed to 20 teams who participated in playoffs. €2m each for playoff winners and €3 million each for eliminated teams.|
|Participation Bonus||€12.7 million (Guaranteed) for each 32 teams who play in the group stages|
|Performance Bonus||€1.5 million for every win & €500,000 for every draw in group stages|
|Round of 16||€6 million each for 16 teams|
|Quarter Finals||€6.5 million each for 8 teams|
|Semifinals||€7.5 million each for 4 teams|
|Runner Ups||€11 million|
|Potential Total||Winner of 2016-17 champions league can earn between €54m to €57.2m from “Fixed Amount” pot. Plus Market pool money which can easily elevate total earnings of winners from England, Spain, Germay or Italy around €100 million (prize money + market pool)|
Market Pool (€507 million) Distribution:
UEFA has announced €507 million in market pool money for each of the next three champions league seasons. Which will be distributed according proportional value of each TV market (Country/League). So the market pool awarded to each country’s league will be distributed among the teams from that league according to their performance in previous league season and how many matches they will play in the given champions league season.
English clubs will benefit the most with the new Market Pool distribution system and If an english club were to win the champions league in 2016-17 season they will earn more than €110 million (around €55m from performance based + another €50m/€60m with market pool).
- If FC Basel were to win the Champions League they won’t make as much as Real Madrid or Barcelona did in the last couple of years. Why ? because of the market value of the team. Teams coming from top 4 European Leagues get the bigger chunk of the market pool.
- Every League (not teams) gets specific market pool money according to the UEFA Ranking of European Leagues, and for example last season from Spain Atletico Madrid, Barcelona, Real Madrid and Real Sociedad played in group stages so the total market pool for spain was shared between four teams. Where Barcelona got €24.6 million, Real Madrid €20 million, Atletico got €17 million and Real Sociedad got €8.5 million in market pool money.
- Juventus on the other hand got massive €58.20 million from market pool money because only them and AS Roma from Italy played in the group stages and Roma knocked out in group stages leaving Juventus with huge portion.
- So the Market Pool given out to other low ranked leagues like Ukraine, Russia etc is much lower so the clubs from those countries get less money even if they over achieve and qualify for the later stages of the champions League.
How much Real Madrid and Atletico Earned during Last Champions League prize money ?
Real Madrid defeated Atletico in the final of 2016 Champions League and set to pocket minimum €94 million from their 2015-16 european campaign. While Atletico will be making around €82 million.
- Real Madrid earned around €40.6 million in market pool money plus €53.4m in performance based money taking total earnings from 2015-16 season to €94 million.
- Atletico got €35 million in market pool plus €47m in performance based making grand total of €82 million for their 2015-16 champions league campaign.
|STAGE||Real Madrid||Atletico Madrid|
|Participation Bonus||€12 million||€12 million|
|Performance Bonus||€8 million (for winning 5 group games and drawing 1)||€6.5 million (for winning 4 group games + 1 Draw)|
|Market Pool||€40.6 million||€35 million|
|Round of 16||€5.5 million||€5.5 million|
|Quarter Finals||€6 million||€6 million|
|Semifinals||€7 million||€7 million|
|Finals||€15 million (winners)||€10 million (runner ups)|
|TOTAL||€94 million||€82 million|
How UEFA Distributed Prize Money In 2014-15 Champions League Season:
Following table shows how all the 32 participating teams were paid in prize money, performance bonus and market pool money.
Please click on the image below to zoomin