The final qualifying round draw for the 2005/06 UEFA Champions League on Friday will determine the opponents for Manchester United, Everton and Liverpool.  A minimum prize of £10 million is guaranteed to each club should they all progress to the lucrative group stages of the competition.  Should all three clubs qualify for the group stages, the total revenue generated for the five participating Premiership clubs in 2005/06 could be in excess of £100m depending on results on the pitch.

Dan Jones, Partner in the Sports Business Group at Deloitte, explained: “Entry into the group stages of the UEFA Champions League guarantees each club a minimum of over £6 million in UEFA distributions from centrally negotiated broadcasting and commercial deals.  In addition, each club is guaranteed match day income from at least three extra home games plus potential commercial bonuses meaning that total revenue per club is likely to be over £10m from the group stages alone.  These qualifying games are financially the most important in the season for each of the three competing Premiership clubs.”

Tapping into the grand £100 million prize from UEFA distributions and matchday revenues:

• Progress to the group stages guarantees a minimum £10 million for each competing English club;
• Further progress brings greater riches: Liverpool generated estimated revenues of £30 million from their 2005 triumph.

Paul Rawnsley, a Senior Consultant in the Sports Business Group at Deloitte, added: “Much of the additional UEFA Champions League revenue has limited direct associated costs meaning it is largely profit.  Competing is key to the five participating club’s finances and is likely to represent between 15% and 20% of their overall revenue.  The clubs are all too aware of the huge financial prize presented by the Champions League and have made significant investments to raise their games: securing qualification is crucial to these clubs.”

Overall, UEFA distributed over £250 million in revenue to the 32 clubs participating in the group stages for the 2004/05 competition, with a similar amount expected to be distributed in 2005/06.  Fifty percent of this revenue, the market pool, is distributed to clubs participating in the group stage according to the proportional value of their broadcast market, whilst the other 50% is paid out in match and performance bonuses.

Ends

Notes to editors
For further information or to speak with a member of the Sports Business Group at Deloitte please call Sorrelle Cooper (Deloitte Press Office) on +44 (0)20 7303 4820 or +44 (0)7932 078218, or e-mail: sorrellecooper@deloitte.co.uk.

About the Sports Business Group at Deloitte
Over the last 15 years Deloitte has developed a unique focus on the business of sport. Our specialist Sports Business Group offers a multi-disciplined expert service with dedicated people and skills capable of adding significant value to the business of sport. Whether it is benchmarking or strategic business reviews, operational turnarounds, revenue enhancement strategies or stadium/venue development plans, business planning, market and demand analysis, acquisitions, due diligence, expert witness, audits or tax planning; we have worked with more clubs, leagues, governing bodies, stadia developers, event organisers, commercial partners, financiers and investors than any other adviser.

For further information on our services you can access our website at www.sportsconsulting.co.uk 

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP.

Deloitte & Touche LLP is the UK's fastest growing major professional services firm based in 21 UK locations, with over 10,000 staff nationwide and fee income of £1,246 million in 2003/2004. It is a member firm of Deloitte Touche Tohmatsu, a leading professional services organisation, delivering world class audit, tax, consulting and corporate finance services, with around 120,000 people in over 140 countries. Deloitte Touche Tohmatsu is a Swiss Verein, and each of its national practices is a separate and independent legal entity.

Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.

The information contained in this press release is correct at the time of going to press.