Europe’s best team doesn’t always earn the most

The most prestigious club football competition is reaching its climax. This Saturday, FC Liverpool and Real Madrid will face off for the Champions League trophy. But beyond the cup, tens of millions of euros are also at stake at the Stade de France in Paris. So far, the highest amount earned by a club for participating in the Champions League was achieved by Paris Saint-Germain after the 2019/2020 season — €126.8 million — even though the Qatari-owned team lost the final to Bayern Munich 0–1. How is it possible that the winner earned less than the runner-up? And could a new record in earnings be set this season?

To understand this, one must break down the entire reward system for clubs in the Champions League group stage. According to data from UEFA, a record-breaking total of more than €2 billion was allocated for the 32 participants of the competition. For comparison, the amount for the 2020/2021 season was €60 million less. Despite the disruptions caused by the COVID-19 pandemic, UEFA increased the prize pool again.

“It’s clear that the crisis hasn’t affected the Champions League. It’s UEFA’s showcase competition, and these figures are great news for European football,” said sports analyst and football agent Jozef Tokos to Pravda.

The €2 billion fund is divided into four parts:

• 25% (€500.5 million) is participation money distributed equally among the 32 clubs

• 30% (€600.6 million) is awarded based on performance (wins, draws, and progression through knockout stages)

• 30% (€600.6 million) is distributed based on the 10-year club coefficient ranking

• The final 15% (€300.3 million) depends on market share and TV ratings

“UEFA is trying to create the fairest system possible, but in the end, the richest clubs still earn the most,” Tokos noted. The complexity of the system means that the Champions League winner doesn’t always make the most money. In the past seven seasons, only twice did the champion take home the highest earnings — Real Madrid in 2018 and Chelsea in 2021.

Liverpool is the only team in this Champions League season to win all their group matches, making them the top earner so far with €80.94 million in participation and performance bonuses. Finalists receive an additional €15.5 million, and the winner will collect another €20 million. Real Madrid is close behind with €78.14 million, and all signs point to one of these two becoming the financial winner of the competition. This is thanks in part to the 10-year coefficient share, where Real Madrid tops the rankings and will receive an additional €36.4 million.

“The coefficient shouldn’t play such a major role in a competition like this. It feels more like a safety net for the big clubs in case they underperform for a couple of seasons,” Tokos explained. A perfect example of this safety net in action is FC Barcelona. They failed to progress from the group stage this season and earned “only” €22 million. Last year, they earned €87 million, and the year before that, over €100 million. Yet, they are ranked third in the 10-year coefficient table, which means they will still receive another €34 million on top of their €22 million. Once the unknown amount based on market share is added, the financial drop will be far less dramatic than their sporting failure.

“Out of the four components, I consider the coefficient share the most controversial. Allocating 30% of the total sum to clubs based on historical performance seems excessive to me,” the football agent concluded.