Why last night could be worth over £20m to us

Prestwich_Blue

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Just having a look at how UEFA will be distributing the prize money for this season's CL and comparing that to last season.

The way it works is that there are two pots of money. The first is a fixed amount, which depends on your results in group stage games (so much for a win and so much for a draw) and a fixed bonus for each round you get to.

The other pot is the "market pool" which is a bit more complicated. It's a big pot of money which is split between the clubs of each national association based on how much TV money their country paid for the rights. Last season, the English clubs got 19% of that pot, meaning that Sky & ITV's fees for the rights was 19% of the total across UEFA. Half of that pot gets split depending on where you finished in the league the previous season (40%/30%/20%/10%) and the other half is based how many games you played in the CL compared to the other clubs in your national association. So we played 8 games out of a total of 32 (I think) meaning we got 25% of that.

Last season we got €11.6m for our group stage participation, €3.5m for getting to the last 16 and €30.752 from the market pool, making €45.852m in total (about £33m according to our accounts).

This season, they've increased the fixed part and reduced the market pool so we've now earned a guaranteed €18m for the group and €5.5m for the last 16, making €23.5m, compared to the equivalent €15.1m last season. So we're already better off.

UEFA have said that the total market pool this year is €482.9m but what we don't know is (a) what proportion of the TV deal we now have and (b) how many games we will have played compared to the other three English teams. It's best, on that front, if they all go out as early as possible (EL games don't count) so our proportion is higher.

We can make some guesses however. Last season we (England) got 19% of the market pool with a TV deal worth £145m a season. That means that the total CL TV deal was around £760m. The BT Sport deal has doubled our per season deal, so if nothing else has changed, then we would have about 35% of the total deal. But let's assume it's a figure of 30%, on the basis that other deals have increased but not by as much.

So England's share of the Market Pool could be something like €145m. Splitting that into two gives €72.75m and we'll get 30% of that for our second place finish, which is €21.825m. For the other half, I'll assume that Arsenal go out tonight, so them and the rags will have played 6 games each, Chelsea get through but go out in R16, meaning they'll have played 8 games, and that we got out in the QF, meaning 10 games. That's a total of 30 games, of which we played a third. So our share of the other Market Pool pot would be €24.25.

Getting to the QF (which we have a better chance of doing having won our group) would give us an additional €6m as a fixed bonus as well so our total take could be something like €74.5m, compared to €45.85m last season, which is nearly €30m/more or around £22m. That's based on a few assumptions of course so it could be less but might be more (if we get to the SF or the overall share of the TV deal is higher).

So a good night's work all round.
 
"Splitting that into two gives €72.75m and we'll get 30% of that for our second place finish, which is €21.825m. "

Al I missing something here, PB? I admit I scan read it a bit. Very interesting, though. I'd forgotten the financial implications of progress.
 
Principly i don't think the money matters that much to us, our owners are so rich that it's practicly pocket money. Then again they do invest to increase the value of the club and our owners have been succesfull in that to the point that city is worth a lot of money now and probably comes out profitable for our owners which means investors will likely continue their interrest in our club and will be willing to put down big money if they want a piece of this pie. Still with such rich investors you would think it wasn't so much a matter of money for them rather than a form of hobbey-investing for the sport performances, although the fans could always had made the consideration that if things turned red for our investors elsewhere that they would have been motivated to sell, something we likely wouldn't want.

Overall it's good that the club is growing in value even if its not the most important matter.
Good post from the OP though, rather informative.
 
Principly i don't think the money matters that much to us, our owners are so rich that it's practicly pocket money. Then again they do invest to increase the value of the club and our owners have been succesfull in that to the point that city is worth a lot of money now and probably comes out profitable for our owners which means investors will likely continue their interrest in our club and will be willing to put down big money if they want a piece of this pie. Still with such rich investors you would think it wasn't so much a matter of money for them rather than a form of hobbey-investing for the sport performances, although the fans could always had made the consideration that if things turned red for our investors elsewhere that they would have been motivated to sell, something we likely wouldn't want.

Overall it's good that the club is growing in value even if its not the most important matter.
Good post from the OP though, rather informative.
I disagree. It matters if we want to invest in the playing staff as it improves our bottom line.
 
Great post PB BUT in view of all the alleged corruption rife in UEFA and FIFA and every other set of initials ending in FA that there will be any money left for the actual football TEAMS who are doing all the work??

Tongue in cheek question guys.
 
good stuff, you can see why for an unestablished top4 club like Leicester, Spurs or Everton, the CL is a decent pay day
 
Principly i don't think the money matters that much to us, our owners are so rich that it's practicly pocket money. Then again they do invest to increase the value of the club and our owners have been succesfull in that to the point that city is worth a lot of money now and probably comes out profitable for our owners which means investors will likely continue their interrest in our club and will be willing to put down big money if they want a piece of this pie. Still with such rich investors you would think it wasn't so much a matter of money for them rather than a form of hobbey-investing for the sport performances, although the fans could always had made the consideration that if things turned red for our investors elsewhere that they would have been motivated to sell, something we likely wouldn't want.

Overall it's good that the club is growing in value even if its not the most important matter.
Good post from the OP though, rather informative.

You've not heard of FFP then?
 
"Splitting that into two gives €72.75m and we'll get 30% of that for our second place finish, which is €21.825m. "

Al I missing something here, PB? I admit I scan read it a bit. Very interesting, though. I'd forgotten the financial implications of progress.
No you aren't. It should be €72.5m of course based on that €145m.
 
Let's keep it simple! Just assure that me we still have enough cash to pay for the line marking paint?
 
The money involved in the Champions League is frankly ridiculous. No wonder players do almost anything to be involved in it!
 
Principly i don't think the money matters that much to us, our owners are so rich that it's practicly pocket money.
It does matter as our owner can put as much as he likes in but only money we've earned as revenue counts towards FFP. Therefore to stay ahead of the game, we need to maximise our club revenue from sources like the PL, CL, tickets and commercial sources.
 
It does matter as our owner can put as much as he likes in but only money we've earned as revenue counts towards FFP. Therefore to stay ahead of the game, we need to maximise our club revenue from sources like the PL, CL, tickets and commercial sources.

Hopefully a nice draw in the next round will earn us some more money too. Have a good feeling about us in the CL this year.
 
It does matter as our owner can put as much as he likes in but only money we've earned as revenue counts towards FFP. Therefore to stay ahead of the game, we need to maximise our club revenue from sources like the PL, CL, tickets and commercial sources.

Fair point, didn't take that into "account".
 
Cashflow wise we will never have a problem. FFP is the only thing that has and could hold us back so this sort of thing is very important. Revenue is key. Competition income is one thing but profile is the other and longer term more important as it translates to sponsorship / other income. PL games give us a guaranteed level of profile each year, CL progress is the only way we can increase it significantly.
 

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