Swiss Ramble: The Champions League Cash Explained

My thanks to @SwissRamble

While fans are recovering from the unprecedented boozing and ill-fated cartwheeling that only reaching a Champions League final can induce, it’s worth shipping in some expertise when it comes to the money side of matters.

After all, THFC currently has more debt than Manchester United, yet nowhere near the quality of revenue streams with which to serve it.

Also, we live an age where banal daftness is frequently sought to be passed off as fact. One blog this morning is actually running with the tale that Levy is going to get £250million for Christian Eriksen, then let Poch spend it all on players.

I guess if you’re 10 year old in a remedial class, then that might fly.

Swiss Ramble is Brit blogging from Switzerland, usually about the business of football.

Following their incredible exploits this week, Liverpool and Tottenham Hotspur have reached the Champions League final, so we can now update our estimate of how much English clubs will earn from the 2018/19 competition

Due to the significant increase (around 50%) in Champions League revenue in 2018/19, all English clubs will earn much more than prior season (2017/18 comparatives in brackets).

As it stands:LFC €107m (€81m) THFC €102m (€61m) MCFC 93m (€64m) MUFC €93m (€40m).

Liverpool’s Champions League revenue is €107m for reaching the final, up from €81m last season.

Includes: participation €15m, prize money €56m, UEFA coefficient €23m and TV pool €13m. If they win the final, they will earn an additional €4m, bringing their total to €111m.

Champions League revenue is €102m for reaching the final, up from €61m last season.

Includes: participation €15m, prize money €55m, UEFA coefficient €16m and TV pool €16m. If they win the final, they will earn an additional €4m, bringing their total to €106m.

City’s Champions League revenue is €93m for reaching the quarter-finals, up from €64m last season.

United’s Champions League revenue is €93m for reaching the quarter-finals, up from €40m last season.

Includes: participation €15m, prize money €33m, UEFA coefficient €24m and TV pool €21m.

Man United’s revenue has been further boosted by the UEFA coefficient, a new distribution method for 2018/19, based on performances in UEFA tournaments over the past 10 years.

On this basis, English clubs received following payments: MUFC €31m, MCFC €24m, LFC €23m and THFC €16m.

Also worth noting impact of TV pool: (a) half based on position in previous season’s Premier League; (b) half based on current season’s Champions League progress.

So MCFC 1st place in 2017/18 PL explains why they got more than LFC and THFC, even though they progressed further.

It might seem strange that the 2018/19 Champions League revenue for English clubs is relatively even, but this is because of the different elements, eg LFC and THFC have highest prize money, MUFC the highest UEFA coefficient and MCFC the highest TV pool.

Note that these 2018/19 Champions League revenue numbers are only estimates.

Key assumptions: (a) English TV pool increases by 30%, in line with the new BT Sports deal; (b) this has then been split 1/3 TV pool, 2/3 UEFA coefficient, as per total prize money distribution.

However, what is abundantly clear is that the English clubs have really coined it in this season’s Champions League, due to a combination of good progress in the competition and the much higher prize money (plus a good history in Europe in the case of MUFC).