UEFA’s decision to expand the group stage of the Champions League to 36 teams was supposedly designed to increase competition and global interest.
However, much like most decisions made by European football’s governing body, the primary consideration was undoubtedly increasing commercial revenues.
With that in mind, read on as we assess how expanding the prestigious tournament has helped UEFA generate even more money and the impact this has had elsewhere.
Introducing the new Champions League format
UEFA dispensed with the previous group stage set of eight groups of four teams in favour of a 36-team league phase inspired by a ‘Swiss model’ used in other sports.
Clubs are seeded into four pots based on UEFA coefficients, and each team faces two opponents from each pot for eight games in total (4H & 4A).
The top eight teams qualify for the round of 16. The teams placed 9-24th enter a two-legged knockout round play-off to determine the other eight spots in the last-16.
Once those fixtures have been played, home and away knockout ties are played from the round of 16 to the semi-finals. The final is a single game in a neutral venue.
Clubs which previously reached the final could play 13 matches. Under the new format, the two finalists could feasibly play 17 fixtures in the competition.
The addition of more clubs and additional knockout round has increased the number of matches from 125 to 189 overall. This has made the Champions League more commercially attractive.
Expansion generates more commercial opportunities
The expanded format has increased annual revenue to €4.5 billion, which is approximately €1bn more than the previous 2021 to 2024 cycle
UEFA have not only been able to sell more broadcasting slots, but the new system has ensured there are more meaningful games during the league phase.
Sponsorship has also increased on the back of the increased number of fixtures, while each of the participating clubs have garnered more matchday revenues.
UEFA has also sought to offer greater rewards to clubs which progress further in the competition, which some critics argue will increase the gap between the haves and have nots.
However, clubs from lower-ranked leagues are benefiting. Qualification for the league phase is worth more than €20m, while further rewards are available for progressing to the knockout stage.
While this may appear to be a sound idea on paper, the knock-on effect on domestic competitions in smaller countries has become a major issue.
Unbalanced domestic leagues are problematic for UEFA
The Bulgarian First League is a prime example of a domestic competition which has been heavily skewed by Champions League revenue.
Ludogorets won the title for the 14th consecutive time in 2024/25. Their success has been fuelled by a rich owner and income from competing in Europe.
Top-flight leagues in Serbia, Hungary and Slovakia are in the midst of similar dominant spells driven by the revenues generated by Champions League participation.
Clubs in some leagues are attempting to rewrite the narrative through shrewd recruitment. These include Hearts, who are on course to topple Celtic and Rangers in the Scottish Premiership.
UEFA does redistribute wealth to clubs not in European competition via solidarity payments, although these appear to be having minimal impact on the overall picture.
Some smaller nations are exploring the possibility of combining their domestic leagues to make them more attractive to broadcasters and sponsors.
These include Latvia, Estonia and Lithuania, whose top clubs could reportedly join forces to create a cross-border Baltic League.
Various proposals for an Atlantic League featuring teams from the Netherlands, Belgium, Portugal, Scandinavia and Scotland have also been floated.
The implications of missing out on the Champions League
The English Premier League offers a useful study into how important Champions League qualification has become to the top clubs on the content.
Paris Saint-Germain reportedly banked around £125m for winning the competition last season, which made a massive difference to their financial bottom line.
Participating in the Champions League has become an obsession for English clubs, with many of them prioritising qualification over winning domestic cup competitions.
The implications of missing out on the Champions League stretch way beyond club finances, as evidenced by the battle between four English clubs this season.
The Premier League will likely have five qualification spots for next season’s competition, two of which look guaranteed to be filled by Arsenal and Manchester City.
Manchester United, Aston Villa, Chelsea and Liverpool are in contention to join them and the club which misses out may face serious repercussions.
Their ability to retain and attract players would be impacted, while the future of the club’s manager may be contemplated without Champions League football in the equation.
Beyond the vast financial revenues generated by the competition, the sporting implications of missing out on qualification are potentially seismic.
