English clubs fail miserably in Europe again- but does it really matter?
A subtle reminder that football is a business first and foremost
Much like in many recent seasons, European Football has proven in 2024 to be a minefield for English clubs. The richest, freest spending clubs, with he most diverse rosters of talent and best tactical minds on the planet continue to face insurmountable hurdles in European competition. But why?
And before we begin, please understand I am not advocating or supporting the current financial setup, but am merely analyzing it and why it is different for English clubs versus those on the continent.
It really is inexcusable in many ways that English clubs, perennially richer, more cosmopolitan in squad makeup and more globally visible keep losing to German and Italian clubs in Europe.
Italian football in particular is a basket-case when it comes to finances. German clubs are handcuffed by the 50+1 rule (or so we are regularly told) that limits investment and keeps clubs in the hands of its supporters (though Bayern in particular has gamed the system with massive investment from the 24% of the club that is not owned by supporters).
But in other ways, it’s perfectly understandable why English clubs lose in these competitions- because football is now a business where pragmatic management of resources matters and while European glory is wonderful for the supporters, UEFA has not made these competitions lucrative enough financially for the clubs to solely focus on them. This is also why clubs were so tempted by the Super League idea.
Honestly, and this might come as a shock or even be seen as mildly offensive to football purists, but UEFA competitions do not matter that much financially to the top English clubs whereas for continental clubs, UEFA competitions are critical to financial stability- and aren’t doing quite enough, hence once again the temptation of a Super League. Sure there is the prestige associated with a European cup run or trophy and some clubs, particularly Liverpool have built their brand on continental relevance.
But others, don’t need it. Arsenal has never won the European Cup/UEFA Champions League and yet their brand and marketing prowess is FAR stronger globally than the majority of clubs that have won that competition.
Arsenal’s revenue from media deals will outstrip Real Madrid’s this season by a substantial amount even if Real Madrid wins the UCL. Heck they might generate more media revenue off the UCL itself event by losing in the Quarterfinals.
If you want specifics on the financials check out the Swiss Ramble (among then list of recommended sites on BT90’s side bar) or The Athletic.
The days when Peter Ridsdale’s Leeds needed to qualify for UEFA Champions League to balance the books are by-and-large over with in England. These days, your major sponsorship and television revenues are tied directly to the league.
In fact, a club official at an English club that semi-regularly qualifies for Europe told me during the Super League controversy of 2021 that sponsorship from UEFA that are forced during their competitions (think Heineken among others) is prohibitive to them activating normal club sponsorship. Additionally, during the Group Stage in particular you have to heavily discount tickets he told me. You never have to do that for a league game.
Let’s also look at domestic cup competitions which for years on the continent have been secondary - with dates moved around, formats changed and inevitably just important because a Cup Winners Cup/UEFA Cup/Europa League spot went to the winner. This can be said for the English League Cup also in fairness, but I support that competition because it’s CRITICAL to funding the EFL. But the FA Cup is a big deal in England and until maybe 15 years ago, winning the Cup was as important if not more important than winning the league.
But today, the Premier League rules the roost in terms of TV and sponsorship revenue as well as ability to generate robust ticket sales. In fact the global audience for the Premier League trumps that of the UEFA Champions League EXCEPT importantly, when English clubs are in the final (which won’t be the case this year).
For better or worse, the Premier League, with its global audience, robust sponsorship deck, weekend fixtures and prize money related to TV deals blows UCL out of the water. And again for clubs, while the prestige attached with Europe might be wonderful, the financial reality dictates a focus on the Premier League.
I am not saying I like it or support it, but this partially explains the situation with English clubs in Europe. Take these points and double or triple them when it comes to the Europa League. This is ultimately why you see English clubs rarely rotate in the league the week before a big UEFA clash which is the opposite of what Italian, German and Spanish clubs tend to do. And in France, we’ve seen a history of actually delaying fixtures to give teams ample rest for their next European clash.
Continued European failures don’t do anything to diminish the brand of English clubs. Heck Manchester United and Chelsea can spend years outside of the UEFA Champions League and still have far more success when it comes to merchandise sales and media deals globally than teams that are regularly hitting the late stages of UEFA club competitions.
In some ways this article could be applied to MLS’ critiques of US Open Cup, but the key difference is I am not saying English clubs should leave Europe not do I like the changes the Premier League continues to force on the FA Cup. However, it does reinforce that elites in football, act like elites in business. Money drives the decision making train.
This is the financial reality today. That is where things stand in the world of football in England and Europe.