By Duncan Mackay
December 18 – Europe’s top football clubs have each earned an average of €50 million (£44.37 million) for reaching the knock-out stage of the UEFA Champions League, according to new research commissioned and released today by official sponsor, MasterCard.
The financial rewards come in the form of a UEFA participation payment and prize money [average €14 million (£12.42 million)]; a share of UEFA commercial revenues from the tournament [market pool payment estimated at €12 million (£10.64 million)]; ticket sales [estimated at €10 million (£8.87 million) ]; commercial and marketing revenues, including sponsorship and sales of merchandise, food and beverages [estimated at €8 million (£7.09 million)]; and increased squad value [estimated at €6 million (£5.32 million)].
The study, conducted by Coventry University’s Professor Simon Chadwick, one of the world’s leading sport business experts, and released to coincide with today’s draw for the knock-out stages, found that surprisingly the biggest beneficiary so far this season is French club Bordeaux, which has scooped €11.5 million (£10.20 million) in prize money alone from this season’s UEFA Champions League group stage plus a further €3 million (£2.66 million) payment for reaching the next round.
The clubs that competed in the group stage and did not qualify for the knock-out stage are each estimated to have made total average earnings of €32 million (£28.39 million) from their participation.
England, Italy and Spain have benefited from the largest economic boost this calendar year.
England, with a 2009 finalist in Manchester United and four teams participating in the 2009 group stage, has benefited by €129.5 million (£114.91 million) in prize money for its clubs, which also include Arsenal, Chelsea and Liverpool.
Clubs in Italy, with three sides qualifying for last season’s knock-out stage and four teams in this year’s group Stage, have earned €104 million (£92.28 million).
In the same period, Spanish clubs have generated €96.9 million (£85.98 million) from Barcelona lifting last season’s trophy and four teams competing in the 2009 group stage.
Chadwick said: ”Over a calendar year, our research suggests that the UEFA Champions League is worth as much as €6 billion (£5.32 billion) to the European economy, with England, Italy and Spain enjoying the greatest economic boost in the last 12 months.
“That means that the annual UEFA Champions League ‘economy’ is comparable to the last FIFA World Cup finals in Germany.
“As well as being a thrilling event for football fans around the globe, this makes it both a premium sponsorship property and an important contributor to the economic and commercial health of Europe.
“Few people realise that UEFA has increased prize revenues for the UEFA Champions League this season quite significantly and, coming out of a downturn, that is a real boost to clubs.”
Paul Meulendijk, the head of sponsorship at MasterCard Europe, said: “As an official sponsor of the UEFA Champions League since 1994, we feel that conducting research into the economic impact of this property is crucial and confirms that MasterCard is one of the leading providers of insight around the heart of sport commerce.
“This season’s research shows again how important the economic impact of these events is and how passion for football can even lead to a positive boost not only for the participating clubs but also for the economy.”
UEFA awards €3.8 million (£3.37 million) to each team that qualifies for the Champions League, plus €3.3 million (£2.92 million) for participating in the Group Stage [€550,000 (£448,065) per game].
A group stage win was worth €800,000 (£709,913) per game, or €400,000 (£354,956) for a draw.
Reaching the first knock-out stage has netted an instant €3 million (£2.66 million) prize payment.
A side qualifying for the knock-out stage by winning all its games will have secured €14.9 million (£13.22 million) in UEFA prize money alone.
UEFA will make additional payments to group stage teams dependent on the commercial success of the tournament, which the MasterCard-commissioned report suggests could amount to approximately €12 million (£10.64 million) per club.
The study also suggests ticket revenues have generated an average of €8.55 million (£7.58 million) in income from the group stage, with commercial and marketing revenues accounting for a further €6 million (£5.32 million) on average and squad values increasing by an average of €5 million (£4.43 million) on the back of qualification for the knock-out stage.
This means that the average economic boost derived from qualifying through the group stage can be split up as 28 per cent due to UEFA prize money, 24 per cent due to the UEFA market pool payment, 20 per cent due to ticket revenues, 16 per cent due to commercial and marketing revenues, and 12 per cent due to increases in player value.
UEFA prize money adds €3.3 million (£2.92 million) for each quarter-finalist, €4 million (£3.55 million) for each semi-finalist, €5.2 million (£4.61 million) for the runners-up and €9 million (£7.98 million) for the winners.
According to the study, the side that lifts the UEFA Champions League Trophy in Madrid in May 2010 could earn up to a total of €31.2 million (£27.68 million) in prize money alone, before significant additional revenues are factored in.
With full prize, commercial and marketing revenues, the research for the Champions League Final held in Rome in 2009 found it was worth more than €110 million (£97.61 million) to the winners, Barcelona, and at least €65 million (£57.68 million) to the runners-up, Manchester United - demonstrating that prize money is less than half the story.
What the clubs qualifying for the knock-out stage have earned so far in 2009-2010
Bordeaux (France) €11,500,000 (£10,205,000)
Chelsea (England) €11,100,000 (£9,850,000)
Fiorentina (Italy) €11,100,000 (£9,850,000)
Arsenal (England) €10,700,000 (£9,495,000)
Manchester United (England) €10,700,000 (£9,495,000)
Real Madrid (Spain) €10,700,000 (£9,495,000)
Olympique Lyonnais €10,700,000 (£9,495,000)
Seville (Spain) €10,700,000 (£9,495,000)
Barcelona (Spain) €10,300,000 (£9,140,000)
Bayern Munich (Germany) €10,300,000 (£9,140,000)
FC Porto (Portugal) €10,300,000 (£9,140,000)
CSKA Moscow (Russia) €9,900,000 (£8,785,000)
AC Milan (Italy) €9,900,000 (£8,785,000)
Inter Milan (Italy) €9,900,000 (£8,785,000)
VfB Stuttgart (Germany) €9,900,000 (£8,785,000)
Olympiakos (Greece) €9,900,000 (£8,785,000)
Top Earning Countries in Prize Money 2009-2010
1. England €41,600,000 (£36,920,000)
2. Italy €40,400,000 (£35,855,000)
3. Spain €40,000,000 (£35,500,000)
4. France €31,300,000 (£27,779,000)
5. Germany €29,300,000 (£26,004,000)
6. Russia €19,000,000 (£16,863,000)
7. Portugal €10,300,000 (£9,141,000)
8. Greece €9,900,000 (£8,786,000)
9. Romania €9,500,000 (£8,431,000)
=10. Belgium €8,700,000 (£7,721,000)
=10. Netherlands €8,700,000 (£7,721,000)
=10. Ukraine €8,700,000 (£7,721,000)
=13. Cyprus €8,300,000 (£7,366,000)
=13. Switzerland €8,300,000 (£7,366,000)
=13. Turkey €8,300,000 (£7,366,000)
16. Scotland €7,900,000 (£7,011,000)
=17. Hungary €7,100,000 (£6,301,000)
=17. Israel €7,100,000 (£6,301,000)
Top Earning Countries 2008-2009*
1. England €119,676,000 (£106,213,000)
2. Italy €93,607,000 (£83,076,000)
3. Spain €89,447,000 (£79,384,000)
4. Germany €57,468,000 (£51,003,000)
5. France €32,014,000 (£28,412,000)
6. Portugal €26,523,000 (£23,539,000)
7. Netherlands €25,906,000 (£22,992,000)
8. Greece €18,870,000 (£16,747,000)
9. Ukraine €15,569,000 (£13,818,000)
10. Romania €14,905,000 (£13,228,000)
11. Turkey €14,674,000 (£13,023,000)
12. Scotland €13,008,000 (£11,545,000)
14. Denmark €12,980,000 (£11,520,000)
15. Switzerland €9,024,000 (£8,009,000)
16. Russia €8,418,000 (£7,471,000)
17. Cyprus €7,972,000 (£7,075,000)
18. Belarus €6,482,000 (£5,753,000)
* This table is based upon official data reported by UEFA for the season 2008-2009 and has been calculated on the basis of participation premium payment + group match participation payment + performance bonus payment + market pool payment + first knock-out round payment + quarter-final payment + semi-final payment + final payment + solidarity payment
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