How UEFA's men's club competitions help to ensure competitive balance and development through financial distribution
Thursday, October 3, 2024
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UEFA's revamped club competition format includes a financial distribution system which earmarks €308m for non-participating clubs. We explain how these solidarity payments will benefit the wider European game.
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An exciting new format for the UEFA Champions League, UEFA Europa League and UEFA Conference League has been introduced for 2024–27 and is predicted to generate around €4.4bn in annual revenue.
Thanks to the new financial distribution system, it won't just be the participating teams who will benefit from the increase in revenue. Those not competing in Europe's most prestigious continental club competitions are set to be boosted by an unprecedented increase in solidarity payments of close to 80%.
These payments, which go to the professional clubs not participating in the league phase of the three competitions, have reached a yearly total of €308m – 7% of the combined gross commercial revenues of the three competitions.
This is up from €175m for the 2021–2024 cycle and represents the most significant increase in solidarity payments since the inception of the system.
The solidarity scheme will continue to strengthen the financial stability of European football by supporting those outside UEFA's club competitions. It also seeks to support competitive balance in domestic competitions and improve the standards of clubs' youth training, sporting infrastructure and governance.
How will the solidarity payments be distributed?
The distribution to the top five countries (England, Spain, Italy, Germany and France) will be capped at €50m, and each of them will receive a fixed annual share of €10m.
The total amount available for non-participating clubs of the remaining countries will be €258m, a 91% increase compared to the previous cycle.
Of this amount, 70% will be distributed based on the position of each association in the access list, while the remaining 30% will be distributed in proportion to the amount received during the season by the top-earning club of each association. This share notably seeks to strengthen competitive balance within the domestic league.
Are there any conditions for clubs to receive these solidarity payments?
Yes. In order to ensure that solidarity money strengthens the foundations of professional football in Europe, clubs must now be able to demonstrate the fulfilment of certain criteria of the UEFA Club Licensing & Financial Sustainability regulations.
The implementation will be staggered over three seasons, and the associations will handle it as part of the usual club licensing process.
The 2024/25 season will not differ much from the past, and the main requirement for clubs is to hold an approved youth development programme. Within the next two seasons, various criteria will be added in the following areas:
- Finance
- Youth team structures
- Medical care
- Child and youth protection and welfare
- Training facilities
- Women's football activities
- Supporter Liaison Officers
- Social responsibility
Which clubs will be entitled to receive solidarity payments?
All first-division clubs not participating in the league phase of any of the three UEFA club competitions. Available amounts will be distributed to the clubs in equal shares.
A portion of the funds may be cascaded to second-division clubs with the agreement of the top-division clubs (the amount again being divided in equal shares).