Every season UEFA shells out north of a billion euros in prize money to clubs that participate in European competition. For example winning the champions league this season will result in the club earning upwards to €100 million while an appearence in the first qualifying round generates €200k. Obviously winning the champions league for the big clubs is the ultimate aim that makes or breaks a season but the aim of this post is to look at the smaller clubs and how the prize money from Europe can have a big impact on domestic leagues. €200 - 500k isn't anything to Real Madrid but to say Crusaders in Belfast it is a game changer.
The impact of European prize money is seen right across Europe and it is positive and negative. For certain leagues the prize money from European results dwarfs domestic prize money enabling clubs to form duopolies and monopolies in leagues. Let's have a look at some examples.
BATE Borisov in 2008 became the first Belorussian team to qualify for the champions league group stage. This gave them access to the estimated €7 million base fee for qualifying. They would end up qualifying on four further ocassions building up enough funds for a lasting period of dominance. The club now play in a 13,000 all seater stadium, to the envy of all other clubs and last October secured their eleventh consecutive league title. BATE's breakthrough and subsquent domination has led to some other sides trying to make inroads in Europe with Dinamo Minsk reaching the Europa league group stage. However such domination has rendered the league uncompetitive.
Dinamo Zagreb's grip on Croatian football has rarely been threatened since 2006. Winners of the past eleven league titles, Dinamo's dominance can be attributed to European prize money and the sales of players to richer clubs. Financially they can't be challenged domestically. That said HNK Rijeka are doing their utmost this season. Opetating on a fraction of Dinamo's budget, Rijeka will be looking for a European run in the champions lesgue next season to keep them near Dinamo. Rijeka however are the only side to come remotely close to challenging Dinamo in recent years.
Another league to see a negative affect on competitiveness is the Swiss super league. FC Basel have been the flagship club in European competition for many years. They reached the champions league last sixteen in 2014 and their runs in the Europa league have helped assert domestic dominance. This season will see them clinch their eight successive league title. Again European prize money as well as player sales from European exposure are major contributers to Basel's dominance.
Smaller leagues to have felt a major change include Bulgaria where Ludogorets Razgrad are strolling to a sixth title in succession. In that period they have qualified for the lucrative champions league group stage twice. Would be challengers CSKA Sofia have spent time in the lower leagues and Levski are struggling to bridge the gap.
In Wales, The New Saints recently sealed a sixth title in a row with no threat. The annual champions league sojourns have seen them uncatchable domestically. Olympiacos have held a vice-like grip on the title in Greece for the past six seasons as have APOEL Nicosia in Cyprus who have designs on a fifth title streak this season.
Leagues that are beginning to develop monopolies and duopolies are seen in Ireland and Northern Ieeland. In the North, Crusaders are almost home and hosed for a third title in succession. Access to the champions league money annually has helped them keep ahead of Linfield and Cliftonville. Down south, Dundalk, champions for the past three seasons, will be looking to use the European money to cement their position at the zenith of Irish football. Challengers Cork City have formed a duopoly with three successive second place finishes in that time. Scotland sees Celtic well clear over the horizon with a sixth title in a row almost officially confirmed.
The Azeri league is an example where European money has formed a duopoly. Both Qarabağ and Qəbələ have reached the Europa league group stage in successive seasons enabling them to pull away from the rest of the league. Long term duopolies can be found in Russia (CSKA Moskva & Zenit St Petersburg), Serbia (Crvena Zvezda & FK Partizan), Portugal (Porto & Benfica) and Ukraine (Shakhtar & Dynamo Kyiv).
However it isn't all doom and gloom. Even long standing domination can be dismantled. In Albania last summer Skënderbeu Korçë were denied champions league entry which allowed Partizani Tirana to close in financially. With Kukësi upping their game as well the title race this season is a three team tussle. Norway had a period of competitiveness after Rosenborg's dominance fell in 2005. Three different sides have since claimed the title. Latvia saw the same when Skonto Riga's run came to an end. In Moldova, Sheriff Tiraspol had their streak ended and two clubs claimed maiden titles. The leagues in Poland, Slovakia, Hungary and Sweden remain fairly competitive in recent years going by past winners and the events of this season.
European money tends to have a greater impact on leagues outside the so called big western leagues, as we have seen in the past few years where the European money has increased significantly. There is enough examles around Europe to suggest that the prize money from UEFA is distorting leagues to an uncompetitive state.
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