Confirmed £23m UEFA deal set to impact Leeds United

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It has been many years since Leeds United were involved in UEFA competition, but the club will be impacted by the latest squabble concerning European football’s governing body.

When the investment arm of the San Francisco 49ers took full control of Leeds last year, they did so with the aim of restoring a sleeping giant to the upper echelons of the Premier League once more.

One year later and they are still in the Championship, but the minority investment in Leeds from Red Bull is the ultimate endorsement that the long-term aims remains the same.

Finalists in the 1974-75 European Cup, Leeds were last in the Champions League in 2000-01, where they were beaten semi-finalists against Valencia.

Now, a domino effect means that the latest developments in the Champions League will – in one way or another – impact Leeds financially for years to come.

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Financial distribution row looms for EFL clubs

The Champions League may seem a remote prospect for Leeds at present, but an ongoing dispute about its financial distribution mechanism is set to impact the West Yorkshire club.

This season, the Champions League will be expanded to 36 teams under a new Swiss system league format, which UEFA says will deliver far more revenue for participating clubs.

A new report from The Times suggests that English clubs can expect to earn an extra £23m on average per season from the revamped competition.

Meanwhile, however, there is conflict internally within the Premier League about the distorting effect this extra prize money may have on competition domestically.

Significantly, the Premier League and EFL currently trying to agree a new distribution deal that will see more cash flow from the top flight to the rest of the pyramid.

The specifics of the new deal are unlikely to be ironed out until the implementation of an independent regulator for English football, which Leeds oppose.

According to the report, several Premier League clubs outside the so-called ‘Big Six’ are proposing that the top clubs should have to funnel some of their extra UEFA cash into the new EFL distribution deal.

The politics at play will likely shape the financial outlook of Leeds, their peers in the EFL, and non-elite Premier League clubs for the foreseeable future.

How much will Leeds earn in the Championship this season?

We do not have the financial data from Leeds’ 2023-24 season available yet, so the nearest benchmark we can use for them in the Championship is 2019-20, when their revenue totalled £54.2m.

However, the new EFL TV deal will likely be worth an extra £3m this season for Leeds, who will benefit from having their matches more regularly with accompanying facility fees.

Matchday income will also likely be worth at least £20m in 2024-25 compared to £15m in 2019.

Leeds also have a new Championship record-breaking shirt sponsorship deal with Red Bull, which will be worth around £8m.

In total, their revenue for the campaign could reach £70m regardless of where they finish in the table, which would be close to a record for a Championship club.