Revamping UEFA Champions League: New Exciting Format

As the Super League idea tried to gain traction, UEFA remodelled its famous Champions League tournament to create a more exciting group stage where top teams are guaranteed to play each other early on in the game. 

In terms of format, the group stage of four teams in one group playing each other twice, home and away, is now the past. It is replaced by a 36-team 1 group format, where teams will play eight games against different opponents, four games at home and four away. 

The Sporting Aspect of the Change

This format will elevate fan engagement by boosting viewership and excitement and delivering unexpected outcomes. With only the top 8 teams qualifying directly for the round of 16, every game matters, making every win and goal crucial. This is exactly what UEFA aims for, transforming the old boring group stage games into a more exciting league format competition. I’m confident they’ll achieve their objective, especially after yesterday’s draw that set up some thrilling and high-stakes matchups for all teams.

After the draw, I identified more than 20 exciting games I was excited to watch, which was never the case before, especially in the group stage, where big games were rare. In the old group format, top teams often breeze through the group stage, winning all 18 points without much challenge. UEFA’s decision to revamp the format is an excellent step towards engaging fans and encouraging them to watch more games.

From the perspective of smaller teams, this new format offers significant benefits. They now play eight games instead of 6, get the opportunity to compete in significant football markets, and have a slightly better chance to win games. They are guaranteed to face two teams from each pot, meaning they’ll have matches against teams of similar strength, increasing their chances of recording a win.

Additionally, teams that rank between 9th and 24th will have a playoff opportunity to reach the round of 16, giving the smaller teams a better shot at achieving something meaningful instead of being stuck in a tough group with little hope of securing a win or qualifying.

The league format and the playoffs to reach the R16 will benefit the smaller clubs and the fans, who will have more to look forward to.

The Business Perspective

That’s all about excitement, engagement, and viewership, but what does that mean from a business perspective, especially for the participating clubs? I will break it down below:

The total prize pot from UEFA this season is €2.437b, up from €2.03b last season. This increase is mainly due to the increase in the number of teams from 32 to 36. 

The €2.4b is split as follows: 

1- Performance-related prize money (37.5%, down from 55% last season). This accounts for €914m.

2- The new value pillar (35%) This accounts for €853m

3- Equal shares (27.5%). This accounts for €18.64m per team.

1- Performance-related prize money (37.5%):

This is the money a club will earn depending on their wins and progression in the tournament. Below is a table that shows how much teams will earn:

Each win in the league phase now generates €2.1 million for clubs, down from €2.8 million in previous seasons. However, clubs play more games in this format, and smaller teams now face opponents of similar strength, increasing their chances of winning and generating extra revenue.

Additionally, UEFA will reward final league positions by dividing 666 shares equally among the teams. The lowest-ranked team will receive the minimum value of €275,000 per share, while the 35th team will get two shares. This continues up to the top-ranked team, which will earn 36 shares, totalling approximately €9.9 million. This change benefits top teams like Real Madrid and Manchester City, who are expected to finish in the top 3, providing them with extra revenue unavailable in previous years.

The new league format will generate more revenue for small and big clubs by distributing prize money based on tournament progression, wins, and final league rankings. This structure encourages all teams to perform at their best; even the final league position earns rewards. As a result, we can expect lower-ranked teams to pull off some upsets, especially when playing at home.

2- The Value Pillar (35%):

This allocation accounts for €853m of the prize pot and combines individual club coefficients and broadcast market payout payments. UEFA divides this value pillar into two parts: European and non-European.

The allocation depends on the overall contribution of media rights from European versus non-European broadcasters. For the European part, UEFA will create two rankings and average the positions to rank teams from 1 to 36. The first ranking is based on the contribution of participating countries’ domestic broadcasters to overall media revenue. Clubs from those countries are then ranked based on their performances in UEFA competitions over the past five seasons.

The second ranking uses each participating club’s five-year UEFA coefficient. UEFA will then take the average of these rankings to determine each club’s final position. The European part will be split into 666 shares, distributed from the team ranked 36th up to the top-ranked team.

The non-European part follows a similar share system, distributing funds based on each team’s 10-year UEFA coefficient.

This pillar will generate more revenue for big clubs than smaller ones due to their higher UEFA coefficients, more significant media rights from their countries, and broader global reach outside of Europe, boosting media rights. However, this revenue likely won’t be enough to satisfy figures like Perez and others pushing for the Super League. Reports suggest that the Super League’s media rights could generate over ten times the revenue of the UEFA Champions League.

Overall, UEFA introduced the value pillar to distribute media revenue more fairly based on each club/country’s contribution to the tournament and media rights, balancing the interests of big clubs while ensuring smaller clubs receive a fair share. At the end of the season, how effective this approach will be in keeping everyone happy remains to be seen.

3- Equal Share (27.5%)

UEFA has increased the equal distribution for all participating clubs to €18.64m, up from €15.64m last season. This guaranteed money, awarded regardless of performance, ensures that all clubs benefit financially, even those from smaller leagues without major sponsors or media rights. The increase is a positive move by UEFA that should satisfy all clubs.

Conclusion

Based on this information, UEFA implemented these changes to counter the threat of the Super League. However, big clubs like Real Madrid will not be convinced by the new format and will likely continue pushing to establish the Super League in the coming years.

This new model is exciting for smaller clubs, who would never have the chance to participate in the Super League. It allows them to maximize revenue from participation, potential wins, and the exposure gained by playing against top-ranked clubs. The possibility of 36 teams qualifying instead of 32 will also increase competition in domestic leagues, as clubs know they have a higher chance of qualifying. All this will benefit European football.

I still think that the round of 16 of the UCL will only have the big teams without any surprises, which is expected given the big difference in talent and resources. But adding more group stage games in a league format, ensuring big games from the start, and giving all clubs chances to win will add a new flavour to the tournament, which it lacked in the past seasons.

I am excited about the new format. Hopefully, it will bring some pleasant surprises and exciting games to watch.

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I write about the business and management aspect of sports mainly focused on football, basketball, tennis, and F1