I’ve had a few questions on the revenue impact of Barcelona’s exit elimination from this season’s Champions League after the group stage. As is often the case, the answer depends on how you look at it #FCBarcelona
As per my model, #FCBarcelona have earned €70.2m from this season’s Champions League, comprising participation fee €15.6m, prize money €7.0m, UEFA coefficient €34.1m and TV pool €15.9m less €2.5m COVID rebate to broadcasters.
As we can see, #FCBarcelona have benefited from their previous good record in Europe with their UEFA coefficient €34.1m payment accounting for nearly half their total €70.2m distribution. This is currently the third highest in Europe, only behind #RealMadrid and #FCBayern.
In addition, #FCBarcelona will receive some money after dropping down to the Europa League, though only an additional €1.4m as it stands: knockout round prize money €0.5m plus estimated TV pool €0.9m.
The club advised that #FCBarcelona had budgeted to reach the quarter-finals of the Champions League. Assuming that they would have won 3 games in the group to secure qualification, that would have given them €94.1m TV money.
Therefore, as it stands, #FCBarcelona have lost €22.5m TV money from their Champions League exit: current revenue €71.6m (Champions League €70.2m plus Europe League €1.4m) less budgeted €94.1m.
However, #FCBarcelona might progress further in the Europa League. Taking the most optimistic assumption where they win the competition would mean €17.4m income, i.e. prize money €14.9m plus TV pool €3.1m less €0.5m COVID rebate.
If #FCBarcelona do manage to get past #MUFC in the knockout round, then win the Europa League, their revenue loss would only be €6.5m: projected revenue €87.6m (Champions League €70.2m plus Europe League €17.4m) less budgeted €94.1m.
At the other end of the spectrum, if #FCBarcelona had won the Champions League, as they have done on 5 occasions, they would have earned a hefty €127.9m. Prize money would have increased to €61.8m, while TV pool would be up to €20.9m (assuming Real Madrid went out in last 16).
Comparing #FCBarcelona actual European revenue of €71.6m with potential €127.9m for winning the Champions League gives a much larger shortfall of €56.3m. Difference is almost entirely lost prize money: last 16 €9.6m, quarter-final €10.6m semi-final €12.5m & winners €20m.
In addition, #FCBarcelona will lose money from lower gate receipts, while sponsorship agreements are likely to include success payments dependent on Champions League progress. On the other hand, #FCBarcelona costs will be reduced, including lower bonus payments.
Joan Laporta said, “The net impact of Champions League will be lower than expected. It will not be 30 or 35 million.” The #FCBarcelona President is probably correct, but, as we have seen, there is no single answer to how much revenue the club has lost.
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As Sunderland prepare for the new season, I took a look at the club's focus on sustainability. How close are they to achieving this and what are the implications for the performance on the pitch? #SAFC
The last available accounts from the 2022/23 season are now a full year out of date, but they still offer some indications of how well the strategy is working #SAFC
The bad news is that Sunderland have reported losses 17 years in a row, adding up to a hefty £272m. However, more positively, the club has drastically reduced the size of its losses, averaging less than £7m in the last four years, compared to £20m in the preceding decade #SAFC
A review of Ipswich Town's finances, as they return to the Premier League after 22 long years away. Focus is on the latest available accounts from 2022/23, but also has comparisons with Championship clubs and some estimates for the top flight #ITFC
Losses have been growing under the new owners, as they invested in the squad and infrastructure in an attempt to return Ipswich to former glories - which has clearly worked #ITFC
Even though they were in League One, 2022/23 was the first time that the club broke through the £20m revenue barrier since the last time that they were in the Premier League back in 2001/02 #ITFC
An explanation of how the new format for UEFA competitions will work from next season, including an explanation of the revenue distribution.
The number of clubs in the Champions League will increase from 32 to 36 with the group stage of 8 groups of 4 teams being replaced by a single league of 36 teams, then a new knockout round, before reverting to the traditional last 16.
Total revenue distribution will increase by 21% from €2.7 bln to €3.5 bln. Lion's share will go to the Champions League €2.5 bln, followed by Europa League €565m and Europa Conference €285m.
Quick review of the money earned by England's Champions League representatives to date after this week's matches.
#MCFC lead the way with £93m, followed by the other quarter-finalists #AFC £80m. The two clubs eliminated in the group stage earned less: #MUFC £51m and #NUFC £29m.
Champions League TV money is split into 4 elements:
- Participation Fee
- Prize Money
- UEFA coefficient
- TV pool
Each club that reaches the group stage receives a €15.6m participation fee.
So Everton have been deducted 10 points by the Premier League for a breach of the Profitability & Sustainability Rules #EFC
I have frequently looked at their case, the last time during an overall review of FFP. The article can be found on my blog here swissramble.substack.com/p/financial-fa…
However, given the importance of this decision, I've attached a series of screen shots from that article that help explain the background #EFC
First, Everton's initial FFP situation over the monitoring period up to 2021/22, where they are a fair way over the maximum allowed loss #EFC
Analysis of Rangers' 2022/23 financial results, when pre-tax loss slightly increased to £3m, as revenue fell 4% to £84m and operating expenses rose £11m, partly offset by profit on player sales more than doubling to club record £24m #RangersFC
In terms of profitability, #RangersFC and #CelticFC were at the opposite end of the spectrum with Rangers posting a small £3m pre-tax loss, while Celtic generated a record £41m profit.
Given that both clubs qualified for the Champions League, the size of the gap might come as a surprise. Cost bases are very similar, but #CelticFC revenue is substantially higher plus once-off other income, partly offset by #RangersFC better player sales.