UEFA Revamps Prize Money Distribution Formula for the Champions League

In a bid to promote fairness and balance in European football, UEFA has unveiled a revamped formula for distributing prize money from the Champions League, set to launch next year. The changes are expected to reduce the guaranteed cash payouts to established wealthy clubs, putting more emphasis on merit-based earnings and sharing the wealth among teams that do not qualify for the prestigious tournament.

Details on the New Model

Under the new distribution model, UEFA will allocate a greater portion of the estimated gross revenue—7% instead of the previous 4%—to clubs that do not secure berths in European competitions. This move is expected to inject much-needed funds into lower-tier clubs, nurturing competitiveness and supporting talent development. The European Leagues group has welcomed this initiative, which will see an increase in funding from €175 million ($188 million) to €308 million ($330 million) for non-qualifying clubs.

Furthermore, UEFA will allocate a larger share of Champions League prize money evenly among all participating clubs who qualify. This allocation will increase from 25% of the total prize pool this year to 27.5% next season. Currently, all 32 teams in the group stage receive a minimum of €15.64 million ($16.8 million). The prize pot shares dedicated to performance bonuses, including wins and draws in the group stage and advancing through knockout rounds, will rise to 37.5% from the current 30%. This change is expected to motivate clubs to perform better throughout the tournament.

Bridging the Wealth Gap

The move comes as part of UEFA’s broader effort to bridge the wealth gap that has been widening across European football. The previous distribution model was criticised for favouring elite clubs and exacerbating financial disparities.

The revamped Champions League, set to debut next year, will feature 36 teams instead of the current 32, with each guaranteed eight games. UEFA has projected total commercial revenue of €4.4 billion ($4.72 billion) for its men’s club competitions, representing an 18% increase over the current season’s combined gross income of over €3.73 billion ($4 billion) for the Champions League, Europa League, and Europa Conference League.

While this increase is significant, it falls slightly short of earlier projections of €4.6 to €4.8 billion, which were made just four months ago after successful broadcast deals for the 2024-27 seasons in Britain, France, and the United States.

The agreement between UEFA and the European Club Association (ECA) is intended to ensure stability in European football. However, it should be noted that in 2021, 12 ECA members attempted to launch the Super League, a project aimed at replacing the Champions League and gaining more control and revenue, but it failed within 48 hours.

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