Proposal for a PDR System to Enhance Payments for Non-Elite Clubs in UEFA

On Monday, the Union of European Clubs put forward a proposal for a financial framework that aims to see UEFA, the continent’s governing body, allocate 5% of its revenue from club competitions to lower-tier football clubs that nurture elite talent.

According to UEFA’s projections from last year, the Champions League, Europa League, Conference League, and Super Cup are expected to generate a gross income of €4.4 billion for the 2024-25 season, meaning 5% would equate to approximately €220 million (around AUD 244.79 million).

The suggested system, known as the ‘Player Development Reward’ (PDR), stipulates that only clubs that fail to progress to the league stage of the Champions League would qualify for these payments. The distribution would be determined by the number of minutes played in UEFA competitions and the prize money earned by those players.

In their statement, the UEC, which advocates for non-elite professional clubs, asserted that the PDR represents a “pragmatic, merit-based strategy for reinstating fairness and balance within the football ecosystem…

“This initiative has already been shared with the European Commission and key football stakeholders, receiving positive initial responses,” the UEC noted.

“The fundamental principle is straightforward: clubs that invest in player development ought to be justly remunerated when those players contribute to the achievements of European competitions.”

The UEC further revealed that nearly 1,500 clubs across Europe would have benefited from PDR payments had the scheme been implemented last season, with over 400 clubs receiving more than €100,000.

UEFA has pledged 7% of its revenue for the 2024-27 cycle to support clubs not participating in men’s continental competitions; however, the UEC has labelled UEFA’s current system as “outdated and misaligned with the goals of sustainable football.”

“We acknowledge the proposal. The solidarity system was discussed with stakeholders ECA and EL before the current cycle commenced and is now in its inaugural year of operation. This issue will be revisited at the appropriate time,” a UEFA spokesperson commented.

Founded in 2022, the UEC operates independently from the European Club Association, which is led by Nasser Al-Khelaifi and claims to be the singular representative body for clubs throughout Europe.

The ECA, which holds a Memorandum of Understanding with UEFA valid until 2033, represents over 440 clubs across the continent, though it is primarily dominated by the larger teams.