UEFA has decided to reduce the prize money in the Champions League and Europa League for the next five seasons due to the financial brunt faced during the pandemic.
According to The Times, UEFA has informed its member associations that they lost £514 million ($666.40 million) following the reduction in both television and sponsorship income after delays in the knockout stages last season.
The two competitions were suspended in March when the pandemic wreaked havoc across the globe. The latter stages of both tournaments were tweaked into a single leg fixtures at neutral venues in August. Champions League was hosted by Lisbon, while Germany were the hosts for Europa League.
As per last season’s forecast, UEFA had €1.95 billion ($2.30 billion) set aside for 32 teams that participated in the Champions League. The report from English daily also revealed that English clubs could see 4 percent in TV revenue and prize money.
Uefa divides Champions League prize money into four different pots. A quarter of the money is allocated to clubs as starting fees, while 30% is allocated based on ten-year performance-based co-efficient rankings.
Based on money generated from broadcast rights of each club, 15% of the prize money is divided between clubs. The final 30% of the money is allocated to  clubs based on performance in each year’s competition. The final pot is likely to see a reduction in the next five years.