UEFA and FIFA declare golden years over
Europe's elite clubs will get less money from the Champions League from next season as FIFA and UEFA conceded on Thursday that the "golden years" of financial plenty in the game were over.
Europe's elite clubs will get less money from the Champions League from next season as FIFA and UEFA conceded on Thursday that the "golden years" of financial plenty in the game were over.
UEFA chief executive Gerhard Aigner told delegates from 52 member nations at the European governing body's Congress: "We have to accept the golden years are over and we also have to accept some normalisation of our income.
"UEFA finances are sound with 250 million Swiss francs ($181.3 million) in liquid cash assets but the big clubs in the Champions League will get less. Everyone will get a smaller share."
Sepp Blatter, president of world soccer's governing body FIFA, echoed Aigner's sentiments when he told the Congress: "There is a very worrying situation regarding some of our TV partners with insolvencies and bankruptcies in some companies.
"Perhaps there was unreasonable behaviour in our famous bonanza golden years and now there are very serious financial situations in various clubs and associations -- we have to look forward to a better future."
Top clubs were already going to receive less money from next season's Champions League competition when the second league phase is dropped. Clubs who qualify for the later stages will play four fewer matches overall.
Excluding income from Euro 2004 in Portugal, next year's budget, presented to the Congress by treasurer Jeu Sprengers of the Netherlands, predicts a "drastic decrease in TV revenue in all competitions.
"The most significant downswing concerns the Champions League by 215 million Swiss francs compared to last year and by 244 million Swiss francs compared to the 2002-03 budget. The UEFA Cup is down by 7.8 million Swiss francs."
David Dein, vice-chairman of English premier league leaders Arsenal, who are almost certain to be in next season's Champions League, said:
"We will just have to grin and bare it but UEFA still have to complete TV deals with several major markets, including Italy, so we can't be sure of the exact figure yet. Also the value of the new contract (in Britain) is actually increased."
Arsenal are one of the 18 members of the G-14 group of Europe's top clubs. The G-14 were upset last year when the original decision was taken to reduce the number of matches in the Champions League.
Thursday's revelation that even less money is likely to be available could spark a new controversy with UEFA.
In 2002-03 UEFA's Champions League revenue was 1.06 billion Swiss francs and although European soccer's ruling body is still easily able to balance its books, the balancing act will be more delicate than in the past.
The reason for that is the reduction in revenue from TV overall. In 2001-02, according to the budget, 82.1 percent of all UEFA revenue came from TV. Exactly 16 percent was from sponsors, 1.2 percent from non-related football income, such as office leasing, and just 0.4 percent from ticket sales.
However, while TV revenue will be down, the financial figures were not all doom and gloom.
Sprengers predicted that overall profits for next year's European championship could be as high 225 million Swiss francs and at worst about 200 million, a big increase on Euro 2000 which produced a profit of about 120 million Swiss francs.
"Compared to last year when heated political infighting between UEFA and FIFA produced a super-charged meeting in Stockholm, this was a tame affair," Aigner said, adding that it was largely concerned with financial and business matters.
He himself received a standing ovation at the end of what will be his last Congress before he retires at the end of the year after 14 years as UEFA's chief executive.
The Congress passed a resolution calling on the European Union to establish a new legal basis for sport in a revised European Union treaty.
It also launched plans to mark UEFA's 50th jubilee in 2004 with, among many other celebrations, the creation of a permanent Hall of Fame recognising the best European players from each of the member associations over the last 50 years.
UEFA is also pressing ahead with plans for a club licensing system to strengthen the game throughout Europe.