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

Money hadnt even crossed my mind until this post!

I wonder what bonus' our lads have had for qualifying top of the group? ;-)
 
Prestwich_Blue said:
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.
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Really informative post, thanks for that PB. What percentage of the increase would you estimate will get swallowed up by player and staff bonuses? As a lot of our player's contracts are heavily performance related, I'd assume it would be a significant sum. Still fantastic news nonetheless!
 
Shaelumstash said:
Really informative post, thanks for that PB. What percentage of the increase would you estimate will get swallowed up by player and staff bonuses? As a lot of our player's contracts are heavily performance related, I'd assume it would be a significant sum. Still fantastic news nonetheless!
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I read something the other day suggesting that the leading players might get about £35k each just for topping the group and £200k each for winning the CL. If that's the case then last night might have cost us £0.5m or thereabouts.
 
Prestwich_Blue said:
I read something the other day suggesting that the leading players might get about £35k each just for topping the group and £200k each for winning the CL. If that's the case then last night might have cost us £0.5m or thereabouts.
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So the likes of Yaya and Aguero will get around a days wage for topping the group and less than a weeks wage bonus for winning the Champions League? Surely that can't be right?

From reading Sorriano's book and watching the documentary I understood that the policy they had at Barca and which they've implemted here is that we pay around 80% of the market rate as a flat wage, but then if we win major trophies the players can earn 120% of the market rate. If we have followed that model I'd assume the bonuses are 10 times what you've suggested for winning the Champions League.
 
Shaelumstash said:
So the likes of Yaya and Aguero will get around a days wage for topping the group and less than a weeks wage bonus for winning the Champions League? Surely that can't be right?

From reading Sorriano's book and watching the documentary I understood that the policy they had at Barca and which they've implemted here is that we pay around 80% of the market rate as a flat wage, but then if we win major trophies the players can earn 120% of the market rate. If we have followed that model I'd assume the bonuses are 10 times what you've suggested for winning the Champions League.
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That's my understanding, and for some reason, bonuses don't always count to FFP (I think).

Lower basic wage, higher bonuses. Those bonuses quoted seem very low though.
 
A funnier way to look at it is how much the relegation to the Europa League has cost the Rags in both prize money and sponsorship. If they fail to qualify for the CL next year, how much will their gold plated sponsorship deals reduce by assuming there are break clauses in the deals?
Will the Glaziers be spluttering into their espressos?
 
They don't sound like figures that would provide any extra motivation to top-level players? 200k to win the champions league? They get 200k per week sat on the treatment table! Not sure they will be accurate numbers?
 
MillionMilesAway said:
That's my understanding, and for some reason, bonuses don't always count to FFP (I think).

Lower basic wage, higher bonuses. Those bonuses quoted seem very low though.
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From what I understand the sponsorship deals also have triggers in them where the club will recieve higher payments for reaching set objectives, winning trophies, latter stages of CL etc.

Whatever the figures are, we've clearly got some of the best football executives in the world so I'm sure they will have planned it so success on the field will lead to a net increase in profits.

Unfortunately in the modern world players and agents are king and if they know an increase in TV revenue is coming, you can guarantee they'll be renegoting their contracts upwards to reflect that.
 
Shaelumstash said:
Unfortunately in the modern world players and agents are king and if they know an increase in TV revenue is coming, you can guarantee they'll be renegoting their contracts upwards to reflect that.
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The Premier League's own financial rules don't allow clubs to fund wage increases from increases in TV revenue beyond a set amount, which is £12m this year. Any increase above that has to be from increased commercial or matchday revenue.
 
Struggled to find the right thread for this little cartoon hack...
europaleague.jpg
 
Shaelumstash said:
So the likes of Yaya and Aguero will get around a days wage for topping the group and less than a weeks wage bonus for winning the Champions League? Surely that can't be right?

From reading Sorriano's book and watching the documentary I understood that the policy they had at Barca and which they've implemted here is that we pay around 80% of the market rate as a flat wage, but then if we win major trophies the players can earn 120% of the market rate. If we have followed that model I'd assume the bonuses are 10 times what you've suggested for winning the Champions League.
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Not a chance that City are handing out more than £10m total in prize money to the whole squad for winning the Champions League. Chelsea players supposedly got £300k for their win (per The Sun, so it was likely less than that realistically).

There may be one or two players who have an additional bonus clause beyond the split of the prize money in regards to winning it all, but the idea that many or most would get up to £2m is almost certainly false.
 
abellwillring said:
Not a chance that City are handing out more than £10m total in prize money to the whole squad for winning the Champions League. Chelsea players supposedly got £300k for their win (per The Sun, so it was likely less than that realistically).

There may be one or two players who have an additional bonus clause beyond the split of the prize money in regards to winning it all, but the idea that many or most would get up to £2m is almost certainly false.
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As I remember it City leaked to the press when they renegotiated big contracts for Kun, Silva and Yaya that their new contracts would not see a big increase in basic wage, but instead would be heavily incentivised based on success. For players of that calibre I personally don't think a week or a week and a half's wage is a big incentive to win the biggest competition they enter.

Perhaps the regular bonus might be 300k, but for incentive based contracts that figure would represent no incentive at all.
 
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