Newcastle United and Manchester United were both eliminated in the group stages – but the Magpies stand to make significantly less from competing in the Champions League than the Red Devils.
The Champions League pot is split into four categories: participation fee, prize money, UEFA coefficient and TV pool. All clubs will receive the same participation fee – around £13.32m each – while prize money is allocated based on results so, for instance, Newcastle will bank more than Manchester United in this field on account of claiming a win and two draws in the group stages compared to the Red Devils’ win and a draw. The TV pool is then split based on a club’s position in their domestic league last season and their progress in the Champions League so Manchester United will earn a higher fee on account of finishing one place above Newcastle in the Premier League in 2022-23.
The biggest difference, however, is the coefficient payment, which is awarded based on the last decade of results in UEFA competitions. Given how Newcastle had not played in Europe since 2013, when the black-and-whites reached the Europa League quarter-finals, respected football finance analyst Swiss Ramble has estimated that the Magpies will only take home £3.84m in this particular category. Manchester United may have also finished bottom of their group, but Erik ten Hag’s team stand to make £24.26m because the Red Devils have been involved in a UEFA competition in all bar one of the last 10 seasons.
Manchester United, as a result, have a strong coefficient (92,000 points) whereas Newcastle (8,000) points are currently below sides such as Royal Antwerp, Ludogorets, Viktoria Plzen and CFR Cluj in the coefficient rankings, which is the lasting legacy of the Ashley era. With that coefficient in mind, Swiss Ramble has suggested that Manchester United will make £51m in total from their brief stint in the Champions League this season – and that does not include match day revenue. Newcastle, meanwhile, expect group stage participation to yield at least £37m in revenue.
It is worth noting that the Champions League’s prize money allocation is changing and will be distributed through three pillars from next season. The amount awarded for performance (37.5%) and equal share (27.5%) has increased while the new value figure (35%) is 10% less than the original combined market pool and coefficient payments. However, it is still crucial that Newcastle build up their coefficient, particularly if they are to avoid being in pot four in the Champions League again in the years to come, after Eddie Howe’s team were thrown into the group of death with PSG, Borussia Dortmund and AC Milan earlier this season.
Newcastle still have the chance to qualify for Europe either by winning the FA Cup – however difficult that seems with a quarter-final against Manchester City to come on Saturday – or through their league position at a time when West Ham are just three points clear in seventh with 10 games to go.
“When you look at our league position, we’re still very much in the hunt for finishing as high as we can and then we’re looking at trying to squeeze into Europe,” Howe told reporters. “That will be our aim until the end of the season – regardless of what happens tomorrow.”
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