This is the last in a series of financial articles which explain the financial rewards of the League Cup, FA Cup, Europa league and the Premier league.
This last article will explore the lofty ambitions of the financial rewards that await us in the UEFA Champions league.
Since 2007 successive owners of West Ham have set the ambition for Champions League football for West Ham.
“Champions League? No question about that. Give me at least five years and from then on. No question,” Eggert Magnusson,Chairman of West Ham United, March 29th, 2007.
“We have a seven-year plan to get them into the Champions League” David Sullivan Joint Chairman, West Ham United January 2010
“We hope to close that gap. Our aim is to finish third or fourth. In five or six years, once we get the revenues from the stadium, we will be a force to reckon with.” David Sullivan Joint Chairman, West Ham United March 2013
Champions League Money
UEFA’s revenue for the 2013/14 UEFA Champions League and UEFA Super Cup comes from TV rights and commercial contracts worth of around £1.135bn.
75% of the total revenue from media rights and commercial contracts concluded by UEFA, up to a maximum of the first £449m, will go to the clubs, while the remaining 25% will be reserved for European football, and will remain with UEFA to cover organisational and administrative costs as well as solidarity payments to associations, clubs and leagues.
A total of 82% of any revenue received from the same stream in excess of £449m will go to the clubs, with the other 18% allotted to European football and remaining with UEFA for the purposes listed above.
£46.6m is assigned to the Champions League play-offs, as was the case in the 2012/13 season. Each of the 20 teams taking part in the play-offs will receive a fixed amount of £1.77m. After the deduction of the allocation for the clubs involved in the play-offs, the gross amount available for the UEFA Champions League and UEFA Super Cup totals £1.088bn
The net amount available to the participating sides is divided into two – £424.3m in fixed payments (group stage allocations, performance and qualification bonuses) and £347.1.6m in variable amounts (market pool). The market pool amount will be distributed according to the proportional value of each television market represented by the clubs playing in the UEFA Champions League (group stage onwards), and will be split among those teams competing from a given association.
The 32 clubs featuring in the 2012/13 UEFA Champions League group stage can anticipate a minimum £7.2m. The side that eventually wins the UEFA Champions League title this term could collect £31.7m, not counting the market pool share.
Each of the 32 teams involved in the group stage will collect a base fee of £7.3m. Performance bonuses will also see £847,457 paid for a win and £423728 for a draw in the group phase. The sides competing in the round of 16 can also expect to receive £2.9m each, the eight quarter-finalists £3.3m and the four semi-finalists £4.1m. The UEFA Champions League winners will pick up £8.9m and the runners-up £5.5m.
Despite a Premier League club failing to make the last eight for the first time in 17 years last season. Manchester United came out on top of the Premier League clubs by collecting £30.5m, while Manchester City received £24.7m, Chelsea made £26.3m and Arsenal got £26.8m. UEFA says Bayern got £47.3m in prize money and bonuses, edging beaten finalist Borussia Dortmund who received £46.4m.
So there you have it! All we have to do now is qualify for Champions league football.