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How Chelsea’s Champions League win affects City’s, United’s and Arsenal’s revenues

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Chelsea winning the Champions League will see the other English Champions League qualifiers lose a few million pounds each from UEFA’s pot of TV money going to the Premier League.

While this is a small part of the overall Champions League revenue split (explained in detail here for 2010/2011), it represents a loss nevertheless.

As part of the financial benefits of participating in the Champions League, each league’s clubs get a a share of UEFA’s TV money profits depending on their UEFA coefficient rankings. The Premier League were due £30m from the market pool pot, which would have been split according to the teams’ league standings.

Normally, as domestic champions Manchester City would get 40% of Uefa’s “market pool” pot of TV money totalling around £12m, the second-placed Manchester United 30% (£9m), the third-placed Arsenal 20% (£6m) and the fourth-placed club 10% (£3m).

Instead, with Chelsea winning the Champions League and qualifying as winners, they are now ‘tied’ with City in terms of TV revenue share. As such, City and Chelsea will each receive 30% (£9m), United 25% (£7.5m) and Arsenal 15% (£4.5m.). Uefa have said the figures would be confirmed by its executive meeting in July.

To put these numbers into perspective – each team gets a basic fee – £3.5m in 2010/2011 – for qualifying for the group stages each season, and the profits from qualifying for the knockout rounds and progressing further in the Champions League can mean a £20m difference.

The actual reduction in earnings will be loose change for the three Premier League clubs. Far more importantly, Chelsea’s bumper Champions League earnings will paper over the loss of earnings from finishing 6th in the league and continued Champions League participation will mean that they have another £20m-£25m to expect as a minimum next season.

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One Comment to How Chelsea’s Champions League win affects City’s, United’s and Arsenal’s revenues

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