The New Revenue Model
by Uefaeuro2020info.com – It is far from an identical strategy but the aim is to ensure that we stay ahead of new challenges and ensure UEFA remains a strong, mobile and influential organisation more patient and ambitious than ever.
A holistic approach that encompasses all areas – not just football – is needed, with the goal of unifying, aligning, supporting and supporting the objectives of all the stakeholders in European football and all of its component sports.
In January 2015, UEFA’s Executive Committee, following the recommendation of the committee of competition policy and competition governance, decided to launch an independent Financial Fair Play working group. After consulting with UEFA’s Member Associations in Europe, the Working Group presents UEFA with a proposal that, in addition to maintaining the current financial methodology, should also adopt a new revenue definition for 2014/15 except in the case of the 2007/08 season, which is defined only in relation to FIFA’s law, as amended by FIFA Financial Fair Play Directive.
The ‘Financial Fair Play’ working group is composed of five independent members: QATAR (Saudi Arabian FA), the PCB (Pakistan), Haiti FA (Haiti), Iran FA (Iran) and the Hispanic FA (Veracruz). We are diligently working towards a common opinion for all stakeholders, and we are working side-by-side to achieve this since first contact. Many things need to be done yet, and we need to set targets and a timeline that allows us to nail down the implementation of the proposal within 90 days of the devastating FIFA indictments of 13 June 2015. Here you have to admit, we are nowhere near this impending deadline for fully implementing – Postponing and possibly revising the announcement of – the new financial model for the immediate future. However, it is important to underline that, despite the limited timeline, it should still be described as one. In conjunction with the committees of competition governance and competition policy, this powerful problem-solving initiative was set up in support of the new UEFA president, Gianni Infantino, and we should equally thank the other new presidents who agreed with the idea.
We need to reiterate that this proposal was first developed with consensus of the other members of the Executive Committee and we still, that we must agree with new agendas or proposals of our peers. For this reason, it is important to emphasise that as a group, the Working Group considers the new revenue model to be a significant and definitive step toward an enhanced UEFA budget to reflect the needs of our game.
Each member of the Working Group, along with the other members of UEFA’s Executive Committee, has extensive experience within the game, as individuals and as representatives of their respective countries. All the members hold UEFA’s highest support for the notion of taking the steps in the right direction. One important benefit is the sensitivity of our proposals, which don’t require changing the entire budget and also impose no requirements on the competition committees to become more efficient. This is partially due to the fact that the intention of the new revenue model is to support the interests of all revenue-generating segments; hence, there is no precondition for these committees to review a specific amount or turn a certain proportion of the pie over to the competition committees.The main gains from this model include:
*Increased sponsorship revenue from the Premier League, to be direct inclusion in the revenue distribution, nothing more or less
*The new deal with domestic clubs, namely for the first time a direct revenue share payment together with a predictable allocation.
The distribution of this year’s (€20m) payments is to be divided evenly between the clubs, with €7m allocated to UEFA’s distribution and €10m to member associations, unless the clubs want more, in which case they are to pay that proportion more or less to the distribution pool benefiting them exclusively. The only exception to these rules is if the clubs seem to be ‘picky’, in which case they will have to pony up the total cost of their participation in European competition with only a chance of cracking into the playoff places., the rate of increase is proportional to the entire team’s growth.- New Rights for clubs from linear CBFaged revenue is defined in the Strategic Plan as “Ohio club commitments benefiting from serving five years continuously in four major European leagues (a club may also be eligible for a fifth direct investment from linear CBFaged revenue in any given year)”.
CBP-Radical changes came to Europe’s economical landscape when clubs played only in domestic stadiums beginning in 1968 – it means their financial success is geographically limited to the locality or states where they were established. By 1998, European club trophies had been won by 198 clubs – only 4.5% of UEFA-registered clubs in 19 Member Countries, and considerably less than the 60% MLS clubs win over 3 years.The new revenue model will result in a fair distribution of clubs, with greater openness on the issue to strengthen financial stability.