Monday 20 October 2014

United count the cost of exit from Champions League

Martyn Ziegler

Published 06/03/2013 | 13:10

Manchester United's Wayne Rooney reacts after the Champions League soccer match against Real Madrid at Old Trafford stadium in Manchester, March 5, 2013.        REUTERS/Phil Noble (BRITAIN  - Tags: SPORT SOCCER)
Manchester United's Wayne Rooney reacts after the Champions League exit

MANCHESTER United have missed out on a bumper European payday, but their Champions League exit is not as costly as last season's failure to make it out of the group stage.

United will bank £34million (39m euros) from UEFA compared to £30.4m (35.1m euros) last season, but if Sir Alex Ferguson's side had gone all the way to the final they could have expected to top the £56million mark (65m euros).

 

The financial implications are not limited to media income from UEFA, however. A victory in the Champions League can also trigger sponsorship bonuses and increase the commercial value of a team.

 

When merchandise and gate money is taken into account, analysts believe that Champions League winners can effectively match the sum they will earn from UEFA.

 

Even in terms of the television money and bonuses from UEFA, the value of getting to the final is huge - Chelsea, who beat Bayern Munich to win the competition last year, received £51.7m from the European competition organiser and allowed the club to record a small profit for the first time in the Roman Abramovich era.

 

United's comparative failure last season saw the club's revenues fall for the first time since the Glazers' takeover.

 

The other three English clubs will all earn similar amounts from the Champions League this season, unless Arsenal can stage a remarkable comeback against Bayern Munich next week.

 

Arsenal can expect £29.7m (34.3m euros) from UEFA, Chelsea £29.4m (34.2m euros) and Manchester City £27.8m (32.2m euros).

 

How the income is calculated in the Champions League:

 

:: Each of the 32 teams involved in the group stage collect a base fee of 8.6m euros (£7.5m), plus 1m euros for a win and 500,000 euros for a draw.

 

:: Teams in the last 16 pick up 3.5m euros, quarter-finalists 3.9m euros and semi-finalists 4.9m euros. Champions League winners receive 10.5m euros and the runners-up 6.5m euros.

 

:: Television market pool is distributed according to the value of each country's television market. England's is around £75m (86m euros) annually and half of this is split, with 30 per cent going to the Champions League winners (Chelsea), 30 per cent to domestic champions (Man City), 30 percent to runners-up (Man Utd) and 10 percent to third-place (Arsenal).

 

:: The other half of the £75m euros market pool distribution is based on the number of matches each club plays in the Champions League - Manchester United and Arsenal have played eight, Chelsea and Manchester City six.

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