As we enter in the 2024/25 season, UEFA has uplifted all European club competitions, from Champions League to Conference League. Yes, UEFA Conference league, that’s what it will be known as starting this season. The upliftment has really happened in all areas, from number of teams to the event formats and also the prize money, a whole lot of changes!
The new format in UEFA Champions League group draw now pits each team against 8 opponents with one game against each increasing the number of league matches from 96 to 144. Earlier, participating teams played against 3 opponents in a group and six games facing each opponent. Further, no team will come up against another club from the same domestic league as them, and every club can only face a maximum of two teams from any one country. In a way, this gives more variety
- For the fans as they get to see their team play against a greater number of teams
- For the teams, as they now have a better chance of qualification to the play-off round
In this blog, we will concentrate on the business side of the new look Champions League
The Revenue
The new formats are expectedly boosting UEFA’s revenue with an increased number of games. As per the UEFA budgets, the aggregate gross revenue from the three club competition (Champions League, Europa League and Conference League) is set to jump by 21% over 2023/24 to reach €4.52bn. The jump is expectedly driven an increased media right, which is set to go up by 22% to reach €3.8bn. The commercial revenue too gets a boost as new sponsors for the Champions League including a cryptocurrency trading platform and a betting site is finalized thereby increasing by a healthy 19% to reach €652mn
The Prize Money Payouts
Taking Champions League as the base, the increase in revenue will lead to an increased payout to the participating teams. Reports indicate the total prize money to be distributed among all the teams will go up from €2 billion to €2.5 billion
The interesting thing would be English clubs would receive an additional lump sum based on the value of their TV market and previous history in European competition. So much so that maximum an English club could earn (if an English team wins) would be €155mn/£133mn. Compare it to the 22/23 winners Manchester City receiving £117mn
A cool 15% more!
One can ask if this could potentially lead to an increasing financial gap over those who are not in the Champions League or would this lead to an increased competetiveness in domestic leagues with the bigger goal of reaching Champions League stage
The jury is out on that!
Champions League: Squad Market Values
As a general view, squad market value can be called as a determinant of the team strength. In the 2024/25 edition of Champions League, the value ranges from a low of €21mn (Slovan Bratislava) to a high of €1.34bn (Real Madrid)
Involvement of MCO Network
In the 2024-25 European club competitions, we will see a number of clubs in the multi-club ownership network. As per CIES Sports Intelligence, 2024/25 edition of Champions League features 20 of 36 clubs (55%) who as part of the MCO network. Further, 14 of them are directly or indirectly linked with another club in the competition
In the Manchester City – Girona, Manchester United – OGC Nice (Europa League) cases, UEFA club financial control body had opened proceedings against all four clubs due to a potential conflict with the multi-club ownership rule for UEFA club competitions however, they have quietly allowed the clubs to compete after they were able to demonstrate to the governing body that they had enacted changes that would bring them into compliance with the multi-club ownership rule
Thumbs up to the New Format, Then?
There are multiple points-of-view on that. Some would argue its positives while many would count the negatives. Fact is, it’s here to stay. It’s aimed at making football more competitive and at the same time, designed to earn higher revenues
One key factor would be the issue of player welfare. The two extra matches take the group stages into January and possibly have an effect on player work-rate. The additional fixtures might also have a knock-on effect on domestic cup competitions and international football.
As the tournament progresses, we will see its impact. For now, it’s time to embrace the new beginning
