UEFA increased compensation and prize payments

Football business

Head of the Union of European Football Associations (UEFA) Michel Platini
Photo: Leonhard Foeger, Reuters

European clubs, having supported Michel Platini in the recent elections of the head of the Union of European Football Associations (UEFA), obtained substantial monetary compensation from this organization. For the players' participation in the 2020 European Championship, they will receive more than €200 million from UEFA. At the same time, prize payments related to the clubs' performances in the Champions League and Europa League will be increased. In the main European Cup next season they will cross the €1 billion mark for the first time.

The principles of the financial relationship between UEFA and clubs were set out in a memorandum of understanding signed by the parent continental football federation and the European Club Association (ECA) during the ECA General Assembly in Stockholm. The latter was created in 2008, replacing the so-called G-14 group.

Unlike the G-14, which represented exclusively the interests of the elite, the ECA unites a significant number of clubs from different countries, including those not in leading roles in football. In total, it includes 214 members (105 permanent and 109 associate). There are five Russian clubs in the ECA: Zenit, Lokomotiv, Spartak, Rubin and CSKA. Army President Yevgeny Giner is one of the vice-chairmen of the structure.

Commenting on the results of the agreements reached in Stockholm, ECA head Karl-Heinz Rummenigge called them an “extraordinary success.” And he can be understood. The practice of paying clubs compensation for the participation of their players in top national team competitions has existed for a long time. But never before have clubs received such large sums from international federations as they will receive under the new agreement.

The memorandum of understanding is valid until 2022. This period includes two European Championships - 2016 and 2020 (the first will be held in France, the second - for the first time in history - in 12 countries at once). The amount of compensation for the French championship was previously fixed - €150 million. In Stockholm, it was announced that for the 2020 European Championship clubs were guaranteed payments of €200 million. But this amount is far from final. UEFA explained that clubs will also receive 8% of revenue from television broadcasts, ticket sales and marketing activities associated with the tournament.

In any case, even the guaranteed amount of compensation for it exceeds the value of similar contracts concluded by the ECA in mid-March with the International Football Federation (FIFA). They relate to the 2018 and 2022 World Championships, which will be hosted by Russia and Qatar. Each of them will bring the clubs $209 million.

But increased revenues from the European Championships are not the only bonuses for the ECA. UEFA agreed to give the organization two seats on its executive committee, the body responsible for making key decisions, and also announced an increase in prize money for performances in European competition. The figures for the Champions League look especially impressive. For those 32 clubs that play in the group stage of the tournament, a prize fund of €1.2 billion will be at stake, while this season it is €957 million. Each team is guaranteed €12 million (this season - €8.6 million). Taking into account bonuses for points scored and completed rounds, the amount can increase approximately five times.

The prize money for the Europa League has increased even more significantly. 48 participants in its group stage will fight for €381 million. This amount is more than one and a half times higher than what they are entitled to this season - €232 million.

UEFA's generosity shouldn't seem strange. With its help, the head of the organization, Michel Platini, neutralizes the possible adverse consequences of some of his decisions. We are talking, in particular, about the financial fair play (FFP) program, which limits club expenses. Several teams have already suffered because of it, including continental giants - English Manchester City and PSG, as well as Russian Zenit, Rubin and Anzhi. For violating the FFP, they were subject to large monetary fines as well as administrative sanctions. A number of clubs expressed open dissatisfaction with this strategy.

Meanwhile, the ECA did not enter into confrontation with Michel Platini over this. Moreover, according to experts, largely thanks to her support, he was quietly re-elected to the post of UEFA president in March. And the memorandum concluded soon can, therefore, be considered as his payment to the clubs for loyalty.

Alexey Dospehov

Clubs were charged for their national teams