Euro 2024 in Germany is UEFA’s first step to boost pandemic-affected cash reserves above $550 million

GENEVA – UEFA’s two-step financial plan to replenish its pandemic-hit cash reserves begins with the 2024 men’s European Championship, held at the headquarters of the continent’s biggest economy.

Revenue of around 2.5 billion euros ($2.7 billion) is expected from broadcast and sponsorship deals, and ticket sales, hospitality packages and licensing from holding a 51-game tournament in Germany, which starts on June 14th in Munich and ends on July 14th with the championship. departure in Berlin.

UEFA, European football’s governing body, predicted in April that almost half of its revenue from Euro 2024, around 1.2 billion euros ($1.3 billion), will be profit to finance much of its work and development grants for the next four years and supplement your reserves.

The costs of organizing the tournament include hundreds of millions of euros (dollars) in prize money for the 24 teams and daily payments to the clubs whose players are selected.

The time has certainly come for Germany to host UEFA’s flagship event – 36 years after West Germany organized just one eight-team Euro ’88, a year before the fall of the Berlin Wall – and when members of its executive committee voted in September 2018 to choose the country over Turkey, a global health emergency was not on their minds.

The legacy of the COVID-19 pandemic, however, was on UEFA’s mind when a long-term plan to send Euro 2028 to the United Kingdom and Ireland was finally launched. confirmed in uncontested vote Last October.

A tournament anchored in England, with modern stadiums that generate huge revenues on match days, was a safe choice for UEFA, which was keeping an eye on financial results after Euro 2020, with high maintenance and low revenues, played within a year of delay in half-empty stadiums in 11 countries.

UEFA sets a base comfort level of €500 million ($543 million) in cash reserves and was €575 million ($624 million) before the pandemic spread in early 2020.

It fell to 360 million euros (391 million dollars) in the last accounts for the year 2023.

“However, the lowest point has now been reached,” UEFA chief financial officer Josef Koller told the 55 member associations in February at their annual congress in Paris. The men’s Euros, held every four years, are the basis of UEFA’s finances and funds for development payments to its members.

Even though the Champions League and other club competitions bring in more money – around 3.5 billion euros ($3.8 billion) this season – most of it goes back to the clubs in terms of prize money. UEFA’s 6.5% share of so-called net revenues, after deductions, has been less than 200 million euros ($217 million) per year.

UEFA’s 13 sponsors for Euro 2024 include major football tournaments Adidas and Coca-Cola, Qatar’s tourism board, plus two from China Alibaba subsidiaries and three electronic technology companies.

UEFA normally favors free broadcasters in Europe for national team competitions, to help these games remain part of the national debate. In the United States, games will be shown on Fox Sports on the Vix streaming service in English and Spanish.

This income they provide supports the “Mango Letter” program that UEFA pays each of its member countries for construction projects, operational costs, as well as the management of national teams and education.

“Each of our member associations is eligible to receive up to €17 million ($18.5 million) over the four-year program cycle, from July 2024 to June 2028,” UEFA said of the its basic funding, which is worth more than twice what European federations receive. of FIFA.

The prize money of 331 million euros ($360 million) will be divided between the 24 participating national federations, with the champion receiving 28.5 million euros ($31 million) if they win all games.

More than 600 clubs, most in Europe but some around the world, including in Saudi Arabia, are expected to receive payments from UEFA from a 240 million euro ($261 million) fund to pay clubs for the release of their players .

UEFA said it has allocated 140 million euros ($152 million) to cover players released for the final tournament and 100 million euros ($109 million) will be distributed according to the squads to all teams that played in two editions. of the Nations League and Euro 2024. qualifying games.

After Euro 2020, which had a total fund of 200 million euros (218 million dollars), Chelsea received the biggest payout with 5.1 million euros (5.5 million dollars), Manchester City received 4.5 million euros (4.9 million dollars) and the English clubs shared 47 million euros (51 million dollars).

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