We all know that Europe means money. Lots of money. As a top-ranked UEFA association England holds the maximum number of European spots possible (four in the Champions League and three in the Europa), guaranteeing that seven clubs will collect the riches of continental competition each season. In 2010-11 the European adventures of just 6 clubs alone (Aston Villa did not make it through the Europa qualification round) contributed almost 7% of the Premier League’s total revenue!
The four Champions Leaguers earned €158.8m, while the two Europa clubs brought in €12.3m, in total the six clubs grossed €171.1m from the continental season. These figures only represent the TV money distributed by UEFA and do not include the extra matchday receipts, commercial partnerships, etc. The clubs are undoubtedly delighted to have done so well but there is a problem which takes some of the shine off their European bonanza; they are earning less because Europe is a mess. Distributions from the UEFA competitions are denominated in euros which English clubs must translate this back into British pound either for accounting or actual liquidity purposes. The need to exchange euros for pounds exposes the clubs to foreign exchange risk. Continue reading “England’s Declining European Fortunes”