Why Newcastle United are owed £37m less than Liverpool, Manchester City and Arsenal in Champions League this season

For Newcastle United this season, the Magpies' performance in the league phase of the Champions League is expected to earn the club £47 million in revenue.

On one hand, that is a huge positive for Newcastle's season, and their accounts, because last year Eddie Howe's side were not involved in Europe's premier club competition - or any European football, for that matter.

It is substantial additional revenue that will help the club comply with English football and UEFA's financial controls, allowing Howe's paymasters to spend more freely in the transfer market, in theory at least.

Why Newcastle are owed significantly less Champions League revenue

However, Newcastle's £47m league phase earnings are dwarfed by their fellow English participants. Manchester City and Liverpool are estimated to have pulled £84m, while Arsenal (£83m), Chelsea (£80m) and Tottenham Hotspur (£73m) are also in the top bracket of earners.

Newcastle fans will probably be left scratching their heads at these figures, and rightly so. While the team did finish lowest in the standings out of all six English teams, their final position was 12th - seeded for the knockout phase.

Arsenal, Liverpool, Spurs, Chelsea and Manchester City have all secured passage to the last 16 by finishing in the top eight, but that is not the primary reason for the disparity in earnings.

Teams earn £1.82 million per win in the league phase and £606,000 for each draw, meaning Newcastle's earnings from their four wins and two draws generated approximately £8.5m.

Each of the 36 participating clubs are guaranteed a base 'equal share' payment of £16.1m. Meanwhile, Newcastle are also owed just shy of £7m for their final position in the league phase standings, bringing their total to £31.5m.

Finally, clubs earn prize money through the newly-introduced 'Value Pillar' which rewards historic performance in UEFA competitions. Newcastle have likely drawn £15.5m from this source of Champions League income, falling short of rivals' earnings.

Due to the fact Newcastle have only one prior season (2023/24) in UEFA competition over the last 10 years, their earnings from the Value Pillar are limited, compared to their Premier League counterparts who have regularly competed in Europe over the same period.

Newcastle's UEFA club coefficient is one of the lowest in the competition this season, therefore the club are entitled to less than the likes of Manchester City, Liverpool and co.

This season, Newcastle sat 81st in the UEFA club coefficient rankings, whereas Manchester City (3rd), Liverpool (5th), Arsenal (8th), Chelsea (9th) and Spurs (15th) all benefit financially from strong historic performance.

Fortunately, the Toon Army's qualification for the knockout rounds will have boosted the team's coefficient for next season and the years to come, if they are to qualify for Europe again.