Uefa urged to reform Champions League

21/8/2016

By David Bond

European football’s governing body Uefa risks a breakaway from the Champions League by the continent’s biggest clubs unless it implements “immediate” and “radical” reforms, a study has concluded.

The report by consultants Oliver & Ohlbaum says Uefa should reduce the number of teams in Europe’s elite club competition from 32 to 24 to make it more attractive for leading teams such as Manchester United and Real Madrid as well as broadcasters such as BT.

“There is a growing perception that as the world’s premier club competition, it could be more appealing to fans and worth much more to broadcasters,” the report says.

Based on consumer research in six European markets as well as America and Singapore, Oliver & Ohlbaum argue that a revamped format with more focus on the biggest clubs could lead to a 40 per cent increase in the value of Uefa’s overall media rights.

Uefa is under pressure from Europe’s top clubs to reform the Champions League and increase the amount of money it generates from television rights.

“The new competition would seal Europe’s leading position in global football, ensuring the clubs remain the most recognised brands in the world.”

Under the terms of Uefa’s current media rights deals, clubs competing in the Champions League are forecast to share a total €1.033bn between 2015 and 2018.

In the UK, BT has paid £897m for the exclusive rights to broadcast Champions League and Europa League matches.

But from the start of this season, England’s top clubs will each earn at least £100m from the Premier League’s new £5.1bn broadcasting rights deal with Sky and BT. In Germany too, the value of domestic rights are on the up with Sky and Eurosport paying €4.6bn for the rights to show Bundesliga matches from 2017.

While Germany may be catching up, in Spain, Italy and France the overall revenues clubs earn from commercial, match day and broadcasting income are now less than half of those earned in England.

Early next year Uefa will start the tender process for the next round of three-year rights deals, which are due to start in August 2018.

The Financial Times reported in July that Dalian Wanda Group, the property and entertainment conglomerate run by China’s richest man, Wang Jianlin, was backing plans to launch a rival to the Champions League.

The new league would guarantee more places for Europe’s heavyweight teams and a steep increase in broadcast revenues.

But the report by Oliver & Ohlbaum argues that Uefa could prevent such a breakaway competition by guaranteeing 20 of the 24 places in a new-look Champions League are drawn from Spain, Italy, England, France and Germany. The remaining four places would be taken up by the best teams from the rest of Europe’s leagues.

Uefa said it was consulting clubs about the way forward for the competition.

“The feedback from the consultation process, together with proposals for a way forward, will be submitted shortly to the clubs,” the group said.

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