Chelsea to earn at least £45 million following Champions League victory over Barcelona

[Justin_3d 1,140]

Chelsea have guaranteed the biggest-ever TV cash pay-out from the Champions League after beating Barcelona to make the final.

The Stamford Bridge club will earn at least £45 million with a further £2.8m to come if they win the trophy.

The money is Uefa's payments of TV cash alone and studies have shown the clubs can double that income from ticket sales, sponsorship and merchandise. Manchester United had previously held the record pay-out of CL television cash at £43.5m last season, but this year earned only £28m as a result of failing to qualify for the knockout stages.

Arsenal's earnings were £22.7m this year - £2m less than the previous season - while Manchester City's £21.3m show the difference with the Europa League where last season they earned just £4.5m.

If Chelsea do triumph in the final and finish outside of the top four in the Premier League, they will take the place of the fourth-placed team - currently Newcastle - in next season's Champions League.

That would be a huge financial boost to the Roman Abramovich-owned team, and a major blow of at least £20m to whoever misses out.

The four English clubs have been top of the Champions League payments for years due to the size of the TV deals paid by Sky and ITV, and collectively earned a total of £130m in television money from the competition this season - but £13m less than last season due to poorer performances generally.

However Chelsea's guaranteed £45m compares with £36m last season when they reached the quarter-finals.

Uefa calculate the distribution based on participation and performance bonuses, and half on TV market share.

Each club in the group stage gets a £3.2m participation payment plus £450,000 for each group match played. A further £650,000 are paid for each group win or £325,000 for a draw.

A place in the round of 16 earns £2.45m, the quarter-finals £2.7m, the semis £3.5m, with £4.6m to the losing finalist and £7.4m to the winner.

The TV market share depends on the value of each country's TV deal, and is split among the four English clubs on the basis of how many games they each played in the Champions League.

2011-12 Champions League earnings

• Chelsea £45m* (£36m last season)
  
• Man Utd £28m (£43m last season)
  
• Arsenal £22.7m (£24.7m last season)
  
• Man City £21.3m (£4.5m in Europa League last season)
  
• *£47.8m if they win CL final
  

Despite the good news, Dinosaur Gourlay airs a note of caution:

Asked what reaching the Champions League final meant for the club, Gourlay said: “Financially it is a big boost. It helps us continue our investment in the team as we go forward, but we still have the challenge of making sure we are in this competition next year — and that is very important.

“The simple thing is we have to get the club to break even. We have to balance our outgoings with our income. There are different ways of looking at whether it is fair or not, but what it certainly does is focus us clearly on how we run our business.

“But getting it fair across different countries will be challenging for UEFA. We knew the rules were coming in and we’ve been planning our business that way.”

[KonohasOrangeFlash 2,607]

I wonder where the Money will go? Most likely will be used to pay off Administration costs and Debts. Not on Players

[capriccioso 2,545]

Balancing the books, I'd imagine. The manager sacking business has cost us enormously. Roman needs to either start giving out 1 year deals or setting small compensation clauses.

[Justin_3d 1,140]

Balancing the books, I'd imagine. The manager sacking business has cost us enormously. Roman needs to either start giving out 1 year deals or setting small compensation clauses.

I think we are at around 70 million for firing managers.

A real idiocy, when that money spend could have bought us 2 or 3 more players.

[Justin_3d 1,140]

More warning from Dinosaur Gourlay:

Chelsea chief: We will drop out of Europe's elite without new stadium

Chelsea chief executive Ron Gourlay has warned Champions League finals could become a thing of the past unless the club move to a bigger stadium.

The Blues secured their spot in this season's final on 19 May with a dramatic draw in Barcelona on Tuesday.

Chelsea want to leave Stamford Bridge, but Chelsea Pitch Owners, who have the freehold do not want to sell.

Gourlay said: "Remaining in the elite is a challenge because our stadium is outside the top 30 at this time."

The CPO want the club to expand the current stadium, while Chelsea insist the £600m cost and three-year build-time make that unfeasible.

And Gourlay added: "The way Chelsea has geared ourselves up the last few years puts us in a good position to take the club forward.

"The money generated from matchday through the stadiums is considerable.

"It is no secret that while we are the fifth or sixth biggest club in Europe from a financial point of view but staying in the elite teams in the future is a challenge.

"If we are not able to take the money on matchday then we have to look at other parts of the business to generate the revenues and allow us to continue the circle of success to invest into the team."

Chelsea lag behind clubs like Barcelona, who boast the 100,000 capacity Nou Camp and Arsenal's recently built Emirates, which holds 60,000.

In an era of Financial Fair Play, clubs require a large matchday income to allow them to spend more money on signing players and paying wages.

The CPO acquired the freehold to the stadium in 1997 to protect Stamford Bridge from developers should the club run into financial difficulties.

A vote in October 2011 failed to secure the 75% of CPO shareholders' consent required before the freehold could be sold back to the club - with only 61.5% voting in favour.

Chelsea's finances will be boosted by the biggest-ever TV cash pay-out from the Champions League though as a result of beating Barcelona to a place in the final.

They will earn at least £45m, with an additional £2.8m on top if they lift the trophy.

Manchester United had previously held the record pay-out of Champions League television cash having earned £43.5m last season when they were beaten by Barcelona in the final.

Uefa distribute the money based on a calculation of participation and performance bonuses as well as television market share.

[capriccioso 2,545]

Get rid of Gourlay, ASAP. Send him to Siberia to work in your evil volcano mountain lair, Roman.

[Arief 40]

Get rid of Gourlay, ASAP. Send him to Siberia to work in your evil volcano mountain lair, Roman.

agreed

[RollingPapers 194]

This is really goof for the club! Hopefully we can build a new stadium in the future!

[LDN Blue 7,903]

Get rid of Gourlay, ASAP. Send him to Siberia to work in your evil volcano mountain lair, Roman.

To be fair, what he's saying is right.. But he'd only be right if the ticket prices of a new stadium came down so that we could sell out the new stadium week in, week out.

[KonohasOrangeFlash 2,607]

For once Gourlay is right.

[Justin_3d 1,140]

Chelsea earn £47m prize money from Champions League success

http://www.guardian.co.uk/football/2012/jul/13/chelsea-prize-money-champions-league

[Jype 6,398]

Just posted that same link in the match thread but I guess this is a better place to discuss it.

That's a lot of money.

[Justin_3d 1,140]

Yeah and then you got to take into account the automatic money we get just for being in the CL next year, the PL and then who knows how much more we increase in sponsors.

So we could easily have made 100 mill....and probably are about as close to spend all that money!

[westcountryblue 25]

Yeah and then you got to take into account the automatic money we get just for being in the CL next year, the PL and then who knows how much more we increase in sponsors.

So we could easily have made 100 mill....and probably are about as close to spend all that money!

Agreed, especially with the new financial fair play rules looming. Which is another interesting point, will wonder if there are any loop holes that could be exploited. I'm sure there are!

Can't wait for the new season to start!

[Tricky 301]

So what this actually means is £9 million more than last year, and increased revenue (CL spot plus world club cup) next year. It's not the £100 million extra that ppl seem to think it is.

My guess would be that the CL win was worth a minimum of £40 million all in, but then I think most of the clubs future projections are based on playing CL football. So this isn't an unexpected windfall!

Oh and the sooner we leave the Bridge the better. We need a new ground, I was massively disappointed that the Battersea site fell through. Earls court anyone?

[Jype 6,398]

So what this actually means is £9 million more than last year, and increased revenue (CL spot plus world club cup) next year. It's not the £100 million extra that ppl seem to think it is.

My guess would be that the CL win was worth a minimum of £40 million all in, but then I think most of the clubs future projections are based on playing CL football. So this isn't an unexpected windfall!

Oh and the sooner we leave the Bridge the better. We need a new ground, I was massively disappointed that the Battersea site fell through. Earls court anyone?

Most of us already knew based on the figures from the previous years that winning the CL won't bring the club an extra £100m in prize money directly from UEFA but it's a very significant amount nonetheless. As you mentioned, there is that £9m increase in prize money from UEFA but in addition to that we will be getting next year's CL money as well which we wouldn't be getting had we lost the final and that's about £30m even if we were to be knocked out in the group stage. Also there must have been some performance clauses in the current sponsorship deals and some extra money will be coming from Samsung, Adidas and the other smaller sponsors. Due to the CL win the club has now been able to secure new sponsorship deals with Audi, Delta Airlines etc. which are bound to bring some small pocket change too. All added together that makes a shitload of money and while it may be a bit exaggerated I wouldn't be second guessing that £100m Gourlay has mentioned.

[Tricky 301]

Most of us already knew based on the figures from the previous years that winning the CL won't bring the club an extra £100m in prize money directly from UEFA but it's a very significant amount nonetheless. As you mentioned, there is that £9m increase in prize money from UEFA but in addition to that we will be getting next year's CL money as well which we wouldn't be getting had we lost the final and that's about £30m even if we were to be knocked out in the group stage. Also there must have been some performance clauses in the current sponsorship deals and some extra money will be coming from Samsung, Adidas and the other smaller sponsors. Due to the CL win the club has now been able to secure new sponsorship deals with Audi, Delta Airlines etc. which are bound to bring some small pocket change too. All added together that makes a shitload of money and while it may be a bit exaggerated I wouldn't be second guessing that £100m Gourlay has mentioned.

I know hence my £40 million comment, I'm sure your right with regards to bonuses and increased exposure which would affect commercial sales. But I believe clubs have long term cash flow projections and I'm sure CL money is factored in as a given for us. More a case of money saved than extra money won.

[Justin_3d 1,140]

Another article talking about this, the official PL website:

Chelsea top UEFA revenue list

http://www2.premierl...venue-list.html